SURVEY OF ACCOUNTING 360DAY CONNECT CAR
5th Edition
ISBN: 9781260591811
Author: Edmonds
Publisher: MCG
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Chapter 10, Problem 7E
LO 1-3
Exercise 1-7A Recording product versus SG&A costs in a financial statements model
Weib Manufacturing experienced the following events during its first accounting period:
1. Recognized revenue from cash sale of products.
2. Recognized cost of goods sold from sale referenced in Event 1.
3. Acquired cash by issuing common stock.
4. Paid cash to purchase raw materials that were used to make products.
5. Paid wages to production workers.
6. Paid salaries to administrative staff.
7. Recognized
8. Recognized depreciation on office furniture.
Required
Use the following horizontal financial statements model to show how each event affects the GAAP-based balance sheet and income statement. Indicate whether the event increases (I), decreases (D), or has no effect (NA) on each element of the financial statements. The first transaction has been recorded as an example. Show
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PROBLEM 2-27 Schedule of Cost of Goods Manufactured; Income Statement; Cost Behavior[LO1, LO2, LO3, LO4, LO5]The following selected account balances for the year ended December 31 are provided for ValenkoCompany
Advertising expense . . . . . . . . . . . . . . . . . . $215,000Insurance, factory equipment. . . . . . . . . . . . $8,000Depreciation, sales equipment. . . . . . . . . . . $40,000Rent, factory building . . . . . . . . . . . . . . . . . . $90,000Utilities, factory. . . . . . . . . . . . . . . . . . . . . . . $52,000Sales commissions . . . . . . . . . . . . . . . . . . . $35,000Cleaning supplies, factory . . . . . . . . . . . . . . $6,000Depreciation, factory equipment . . . . . . . . . $110,000Selling and administrative salaries. . . . . . . . $85,000Maintenance, factory . . . . . . . . . . . . . . . . . . $74,000Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . ?Purchases of raw materials . . . . . . . . . . . . . $260,000
Inventory balances at the beginning and…
Exercise 3-2 (Static) Prepare T-Accounts [LO3-2, LO3-4]
Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below.
$94,000 in raw materials were purchased for cash.
$89,000 in raw materials were used in production. Of this amount, $78,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $132,000 were incurred and paid. Of this amount, $112,000 was for direct labor and the remainder was for indirect labor.
Additional manufacturing overhead costs of $143,000 were incurred and paid.
Manufacturing overhead of $152,000 was applied to production using the company’s predetermined overhead rate.
All of the jobs in process at the end of the month were completed.
All of the completed jobs were shipped to customers.
Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold.
Required:
1. Post the above transactions…
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…
Chapter 10 Solutions
SURVEY OF ACCOUNTING 360DAY CONNECT CAR
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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