The manager at Rainbow International prepares a Cost of Quality report to report the following expenses: Inspection of raw material costs Warranty costs warranty claims Cost to dispose of rejected products Train hourly manufacturing personnel Recall of batch #2894 $6,900 $16,000 $60,000 $150,000 Production losses due to machine malfunctions $27,000 Cost of defective products found at inspection audit $67,000 Inspecting products when halfway through the production process $26,000 $230,000 Which of the following total cost is the total cost of quality in the external failure cost category?
Q: Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: How do the opening balances and ending balances look like in a general ledger? Please provide an…
A: Basically 'General Ledger' is a summary of various number of business transactions. All transactions…
Q: • Topper Corporation has 115,000 shares of $1 par value common stock outstanding. When Topper…
A: A stock dividend refers to the distribution of additional shares of stock by a company to its…
Q: Ethan's Eggplants has the following payroll information for the pay period ending January 17, 20 .…
A: The journal entries are related to recording the business transactions in the accounting record of…
Q: The production department of Hareston Company has submitted the following forecast of units to be…
A: Part 1. Direct materials budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total…
Q: 30/6/15 30/6/16 1/7/16 30/6/17 (b) Cash 1/1/18 Depreciation expense Accumulated…
A: In accounting process, firstly we make journal entries of the transactions and then we post the…
Q: Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they…
A: The tax principles serve as guiding principles for policymakers, tax administrators, and taxpayers…
Q: King Company had 25 units @$5 in beginning inventory; bought 30 units @$6 and then sold 50 units.…
A: The first in first out is a method to account for inventory, according to this method the entity…
Q: Allowance Method On March 10, Gardner, Inc. declared a $900 account receivable from the Gates…
A: The Allowance for Accounts Receivable is recorded separately to show the estimated value for…
Q: Dale Walker, Keith Allen, and Issa King have capital balances of $96,930, $77,490, and $6,320,…
A: Partnership is an activity of grouping two or more people for running the business operation to…
Q: 7-41. Predetermined Overhead Rates: Ethical Issues Wanda Instrumentation produces navigational…
A: Predetermined overhead rate=Estimated manufacturing overheadEstimated allocation base×100
Q: Required: 1. Prepare the appropriate journal entry for each transaction or event during 2024, as…
A: Bonds: Issued to shareholders by a company to meet funding requirements when the company needs to…
Q: The accounting records of VJ Company contained the following information for last year: Direct…
A: SCHEDULE OF COST OF GOODS MANUFACTURED Schedule Of Cost Of Goods Manufactured are those Cost Which…
Q: [The following information applies to the questions displayed below.] B-You is a consulting firm…
A: Analyzing based on considerations other than costs involves evaluating various factors beyond just…
Q: The following amortization schedule is for Pronghorn Ltd's investment in Spangler Corp.'s $1…
A: Bonds serve as a means for companies and governments to raise capital for financing projects,…
Q: On its December 31, 2024, balance sheet, Pharoah Company reported it value of $592000. At December…
A: When reporting equity securities classified as available-for-sale, any unrealized gains or losses…
Q: On January 1, Flint Corporation had 62,900 shares of no-par common stock issued and outstanding. The…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: Chik Chik Company showed the following balances at the end of its first year: Amount $6,000 Prepaid…
A: Trial Balance :— It is the statement that shows list of debit and credit balances of all ledger…
Q: Quetzaltenango Candle Inc. budgeted production of 685,000 candles for March. Each candle requires…
A: Cost of goods sold is the statement which is prepared by the entity to determine the cost of making…
Q: On November 15, 2021, Trade Company made payments for the following expenditures:…
A: Asset is defined as any resource that attracts income to its lawful owner. Each asset has varied…
Q: Javier and Anita Sanchez purchased a home on January 1, 2021, for $696,000 by paying $232,000 down…
A: An itemized deduction is a deduction representing expenses that can be deducted from adjusted gross…
Q: In 2000, Ms. Ennis, a head of household, contributed $78,000 in exchange for 780 shares of Seta…
A: Income Tax Due: Income tax due refers to the actual amount of tax that an individual or business…
Q: Sandhill Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The…
A: The method that businesses employ to record the financial impact of their leases is known as lease…
Q: ABC Company made expenditures for the following: Cost of purchased building to be used in…
A: Research and development (R&D) expenses refer to the costs incurred by a company in its pursuit…
Q: A taxpayer uses
A: There are two basis in accounting acrual and cash. In accural basis…
Q: ATC 1-2 (Algo) Group Assignment: Missing information LO 1-1, 1-2, 1-3, 1-4, 1-5, 1-6, 1-7, 1-8, 1-9,…
A: The total asset of a firm is equal to the sum of its liabilities and shareholders' equity, according…
Q: Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It…
A: Under the revenue test when the revenues of one segment are higher than 10% of total revenues, it is…
Q: If the Cost of Sales for the year 2023 is $104,914 and nventories Balance: $18,885 in Year 2023 and…
A: The cash flow from operating activities include the cash flow from various activities during the…
Q: The following are some transactions of Carla Vista Company for 2024. Carla Vista Company uses…
A: 1) Accumulated Depreciation : Depreciation each year = ($56,000 / 10) = $ 5,600…
Q: Recognition upon initial consolidation of a variable interest entity (VIE) when VIE is not a…
A: Fair value is defined as the value which each item fetches when it is traded in the marketplace. It…
Q: Following are accounts and year-end adjusted balances of Cruz Company as of December 31. Number…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: On its December 31, 2024 balance sheet, Pharoah Company appropriately reported a $10,000 debit…
A: Given, Fair value adjustment = $ 10,000 (debit balance) Total cost of portfolio = $ 341,000 Fair…
Q: Ngwenya (Pty) Ltd incurred some research and development costs. The research and development was…
A: Research and Development cost- The costs incurred in conducting experiments and producing new,…
Q: Early in 2025, Stellar Equipment sold 400 Rollomatics at $6,600 each. During 2025, Stellar spent…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: a. Direct materials used. b. Indirect materials used c. Direct labor used d. Indirect labor used. e.…
A: OVERAPPLIED OVERHEAD Overapplied Overhead is occures when Company Budgeted Overhead is more then…
Q: Current Attempt in Progress Aikman Corporation has the following cost records for June 2022:…
A: The cost of goods manufactured (COGM) seems to be the total production cost incurred by a company…
Q: INCOME STATEMENT OF QUICK BURGER CORPORATION, (Figures in $ millions) Net sales Costs Depreciation…
A: A cash flow statement provides data regarding all cash inflows that a company receives from its…
Q: Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's…
A: Closing balance of Retained Earnings = Opening balance of Retained Earnings + Net income - Dividends…
Q: Richard Gaziano is a manager for Health Care, Inc. Health Care deducts Social Security, Medicare,…
A: Net pay refers to the total sum value of money an individual receives on his/her pay check after all…
Q: Use the information from the high- and low-volume months to develop a cost-estimating equation for…
A: High- Low volume method is the method wherein the variable &fixed costs of a product are…
Q: VV Company had 250,000 ordinary shares outstanding at the beginning of 2015. 2020 March 1 Sold…
A: Treasury shares are shares of company owned by itself.
Q: Renaissance Capital Group is considering allocating a limited amount of capital investment funds…
A: Net cash flow refers specifically to the measure of cash inflows and outflows related to an…
Q: On April 7, 2025, Blossom Corporation sold a $5050000, twenty-year, 7 percent bond issue for…
A: Fair value of warrents = 20×2 =40
Q: Gross salaries for the period are $27,500 The CPP employer and employee rate is 5.25% The El…
A: The journal entries are related to recording the business transactions in the accounting record of…
Q: Required information The Foundational 15 (Algo) [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8]…
A: The contribution Margin is calculated as difference between sales and variable cost. The unit cost…
Q: Not sure what I am doing wrong... The plant manager of Shenzhen Electronics Company is considering…
A: This is a case of capital budgeting. We will use capital budgeting tools like payback and NPV to…
Q: Below is the Inventory purchases of Carrigan Corrugated Company. Beginning balance January 1st…
A: Lets understand the basics. In First In First Out basis, goods purchased first are sold first. In…
Q: During 2022, Pharoah Company sold a building with a book value of $153,500 for proceeds of $183,500.…
A: The cash flow statement (CFS) is categorized into major three types of activities. (1) Cashflow from…
Q: enses ve expenses og overhead applied to work in process "acturing overhead costs s ess ds Beginning…
A: MASON COMPANY Schedule of Cost of Goods Manufactured For the year ended ........…
Q: A lessee should classify a lease transaction as a finance lease if it is noncancelable and one or…
A: A lease transaction refers to an agreement between two parties, the lessor and the lessee, where the…
Step by step
Solved in 3 steps
- Defective work Herbert Electronics manufactures an integrated transistor circuit board for repeat customers but also accepts special orders for the same product. Job No. JM4 incurred the following unit costs for 1,000 circuit boards manufactured: When the completed products were tested, 50 circuit boards were found to be defective. The costs per unit of correcting the defects follow: Record the journal entry for the costs to correct the defective work: a. If the cost of the defective work is charged to factory overhead. b. If the cost of the defective work is charged to the specific job.Lloyd Industries manufactures electrical equipment from specifications received from customers. Job X10 was for 1,000 motors to be used in a specially designed electrical complex. The followingcosts were determined for each motor: At final inspection, Lloyd discovered that 33 motors did not meet the exacting specifications established by the customer. Anexamination indicated that 18 motors were beyond repair andshould be sold as spoiled goods for 75 each. The remaining15 motors, though defective, could be reconditioned as first-qualityunits by the addition of 1,650 for materials, 1,500 for labor, and1,200 for factory overhead. Required: Prepare the journal entries to record the following: 1. The scrapping of the 18 motors, with the income from spoiledgoods treated as a reduction in the manufacturing cost of thespecific job. 2. The correction of the 15 defective motors, with the additionalcost charged to the specific job. 3. The additional cost of replacing the 18 spoiled motors with newmotors. 4. The sale of the spoiled motors for 75 each. 5. If the reconditioned motors sell for 400 each, is Lloyd betteroff reconditioning the defective motors or selling them as isfor 75 as spoiled goods?Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.
- A machine shop manufactures a stainless steel part that is used in an assembled product. Materials charged to a particular jobamounted to 600. At the point of final inspection, it was discoveredthat the material used was inferior to the specifications required bythe engineering department; therefore, all units had to be scrapped. Record the entries required for scrap under each of the following conditions: a. The revenue received for scrap is to be treated as a reductionin manufacturing cost but cannot be identified with a specificjob. The value of stainless steel scrap is stable and estimatedto be 125 for this job. The scrap is sold two months later forcash at the estimated value of 125. b. Revenue received for scrap is to be treated as a reduction inmanufacturing cost but cannot be identified with a specificjob. A firm price is not determinable for the scrap until it issold. It is sold eventually for 75 cash. c. The production job is a special job, and the 85 received onaccount for the scrap is to be treated as a reduction inmanufacturing cost. (A firm price is not determinable for thescrap until it is sold.) d. Only 40 cash was received for the scrap when it was sold inthe following fiscal period. (A firm price is not determinablefor the scrap until it is sold, and the amount to be received forthe scrap is to be treated as other income.)For E2-17, prepare any journal entries that would have been different if the only trigger points had been the purchase of materials and the sale of finished goods. Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. At the zero-defect state, Nabors expects to spend 375,000 on quality engineering, 75,000 on vendor certification, and 50,000 on packaging inspection. Assume sales to be 25,000,000. Required: 1. Prepare a long-range performance report for 20x5. What does this report tell the management of Nabors? 2. Explain why quality costs still are present for the zero-defect state. 3. What if Nabors achieves the zero-defect state reflected in the report? What are some of the implications of this achievement?
- Nutt Products manufactures screws and bolts made to customer specifications. During August, Nutt incurred the following manufacturing costs: direct materials, 28,019.00; direct labor, 15,276.75; and applied factory overhead, 9,854.50. The following data pertain to these costs: The overhead application rates are 4 per direct labor hour for Dept. 1 and 175% of direct labor cost for Dept. 2. Nutt had no beginning work in process for August. Job 8958, which cost 14,190.18 to manufacture, was completed in July and was sold on account in August for 19,000. The job cost sheet for this job is shown on page 103. Of the jobs begun in August, Job 8961 was completed and sold on account for 24,000, Jobs 8962 and 8964 were completed but not sold, and Job 8963 was still in process. As cost accountant for this company, you have been asked to prepare job cost sheets for each of the four jobs started in August. Review the printed worksheet called JOB that follows these requirements.Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,400 Training of machine operators 26,300 Processing returned products 15,700 Scrap processing (disposal) 24,100 Rework 7,500 Preventative maintenance 28,800 Product design 44,900 Warranty work 9,400 Finished goods inspection 22,300 From the provided schedule of activity costs, determine the non-value-added costs. a.$114,500 b.$56,700 c.$229,400 d.$47,300Integrity Company’s Job 1088 manufactured 13,750 units that were completed in February at unit costs presented as follows:Direct materials- P300Direct labor- 270Factory overhead (includes an allowance of P15 spoiled work)- P270Final inspection of Job 1088 disclosed 1,250 spoiled units, which were sold for P225,000.What would be the unit selling price if the spoilage is attributable to exacting specifications of Job 1088 and the entity maintain a gross profit of 50%?
- Elmer Company’s Job #040335 for the manufacture of 6,600 coats was completed during Marchat the following unit costs:Direct materials P1,500Direct labor 1,000Manufacturing overhead (includes allowances of P50 for spoiled work) 5003,000Final inspection of job #040335 disclosed 600 spoiled coats, which were sold to a jobber forP600,000.29. What would be the unit cost of the good coats produced on job #040335 assuming thatspoilage loss is charged to all production? Attributable to exacting specifications of job#040335?a. 2,950 b. 3,000 c. 3,145 d. 3,200Elmer Company’s Job #040335 for the manufacture of 6,600 coats was completed during Marchat the following unit costs:Direct materials P1,500Direct labor 1,000Manufacturing overhead (includes allowances of P50 for spoiled work) 5003,000Final inspection of job #040335 disclosed 600 spoiled coats, which were sold to a jobber forP600,000.29. What would be the unit cost of the good coats produced on job #040335 assuming thatspoilage loss is charged to all production? Attributable to exacting specifications of job#040335?a. 2,950 b. 3,000 c. 3,145 d. 3,20030. Using the information in item 29, what is the journal entry to record the disposal of thespoiled coats?a. Cash 600,000Manufacturing overhead 1,200,000Work in process -Job #040335 1,800,000b. Cash 600,000Work in process -Job #040335 600,000c. Cash 600,000Abnormal loss 1,200,000Work in process -Job #040335 1,800,000d. Cash 600,000Manufacturing overhead 1,170,000Work in process -Job #040335 1,170,000ABC Company manufactures a product in two departments: A and B. Owing to rigid quality of control measures, an avoidable unit loss occurs in Department B Production data for the month of May 2021 follows: Units: In process, beginning 20,000 2/5 completed Received from Dept. A 30,000 Finished & transferred ? Finished & on hand 5,000 In process, end. 10,000 1/4 completed Lost units 2,000 Costs: In process, beginning 60,000 Received from Dept. A 105,000 Cost added: Materials 28,875 Labor…