Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Question
Chapter 10, Problem 12E
a.
To determine
Recognize the event that signifies the
b.
To determine
The reason for recognizing depreciations on tools used in manufacturing industries affects the financial statements differently and identifies the depreciation on tools used in service industry.
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Exercise 2-27 Statement of comprehensive Income and schedule of cost of goods manufactured.
The Howell Corporation has the following account balances (all in millions):
For Specific Date
Direct Materials, January 01, 2019 $18
Work in process, January 01, 2019 12
Finished Goods, January 01, 2019 84
Direct Materials, December 31, 2019 24
Work in Process, December 31, 2019 6
Finished Goods, December 31, 2019 66
For the Year 2019
Purchased of Direct Materials $390
Direct Manufacturing Labour 120
Depreciation, - Plant, Building, and Equipment 96
Plant Supervisory Salaries 6
Miscellaneous Plant Overhead 42
Revenues 1140
Marketing, Distribution and Customer Service Cost 288
Plant Supplies Used 12
Plant Utilities 36
Indirect Manufacturing Labour 72
Required:
Prepare a statement of Comprehensive Income and a supporting schedule of goods manufactured for…
Intermediate Accounting 105
Please use GAAP concepts and explanations provided with examples.
New machinery, which replaced a number of employees, was installed and put in operation in the last month of the fiscal year. The employees had been dismissed after payment of an extra month’s wages, and this amount was added to the cost of the machinery. Discuss the proprietary of the charge. If it was improper, describe the proper treatment.
Q 2From the following particulars of a manufacturing firm, prepare a statement showing:
Materials used in manufacturing OMR 60000
Materials used in primary packing OMR 10000
Materials used in selling the product OMR 1500
Materials used in the factory OMR 750
Administrative expenses OMR 1250
Depreciation on office building OMR 750
Depreciation on factory building OMR1750
Materials used in the office OMR 1250
Wages - production OMR 10000
Wages - factory supervision OMR 2000
Indirect expenses - factory OMR 1000
Selling expenses OMR 3500
Audit charges OMR 250
Bank service charges OMR 100
Freight on materials purchased OMR 5000
Advertising Expenses OMR 1250
Profit OMR 25% on cost of production
Calculate :
(a) Prime Cost (b) Works Cost
(c) Cost of Production (d) Cost of Sales and (e) Profit
PLEASE ANSWER FIRST A,B AND C SUBPART
Chapter 10 Solutions
Survey Of Accounting
Ch. 10 - 1. What are some differences between financial and...Ch. 10 - 2. What does the value-added principle mean as it...Ch. 10 - 4. How does product costing used in financial...Ch. 10 - 5. What does the statement costs can be assets or...Ch. 10 - 6. Why are the salaries of production workers...Ch. 10 - 7. How do product costs affect the financial...Ch. 10 - 8. What is an indirect cost? Provide examples of...Ch. 10 - 9. How does a product cost differ from a selling,...Ch. 10 - 10. Why is cost classification important to...Ch. 10 - 11. What is cost allocation? Give an example of a...
Ch. 10 - 13. What are some of the common ethical conflicts...Ch. 10 - 14. What costs should be considered in determining...Ch. 10 - 15. What is a just-in-time (JIT) inventory system?...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 1ECh. 10 - Exercise 1-2A Identifying product versus selling,...Ch. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Exercise 1-6A Identifying product versus SGA costs...Ch. 10 - LO 1-3 Exercise 1-7A Recording product versus SGA...Ch. 10 - Prob. 8ECh. 10 - LO 1-4 Exercise 1-9A Upstream, midstream, and...Ch. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Cost of goods manufactured and sold The following...Ch. 10 - Prob. 15ECh. 10 - Exercise 1-14A Using JIT to minimize waste and...Ch. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Problem 1-19A Characteristics of financial versus...Ch. 10 - Prob. 22PCh. 10 - Problem 1-21A Effect of product versus period...Ch. 10 - Problem 1-22A Product versus SGA costs The...Ch. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 1ATCCh. 10 - Prob. 2ATCCh. 10 - Prob. 3ATCCh. 10 - Prob. 4ATCCh. 10 - Ethical Dilemma Product cost versus selling and...
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