Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 2, Problem 10DQ
Describe how a
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Cullumber Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales return
period extends 60 days. On February 10, 2024, a customer purchases $4100 of products (cost $2050). Assuming that based on prior
experience, estimated returns are 30%. The journal entry to record the expected sales return and cost of goods sold includes a
O debit to Cash and a credit to Sales Revenue of $4100.
debit to Sales Returns and Allowances of $1230 and a credit to Cost of Goods sold of $615.
O credit to Estimated Inventory Returns of $615.
O debit to Cost of Goods Sold and credit to Inventory for $2050.
Meyer & Smith is a full-service technology company. It provides equipment, installation services as well as a full year of training.
Customers can purchase any product or service separately or as a bundled package. Cullumber Corporation purchased computer
equipment, installation, and training for a total cost of $143565 on March 15, 2024. Estimated standalone fair values of the
equipment, installation and training are $99000, $44400, and $25500 respectively. The equipment was delivered and installed on
March 15, 2024. The journal entry to record the transaction on March 15, 2024 will include a
credit to Unearned Service Revenue of $21675.
O credit to Service Revenue of $44400.
O credit to Sales Revenue for $143565.
O debit to Unearned Service Revenue of $25500.
Chapter 2 Solutions
Managerial Accounting
Ch. 2 - A. Name two principal types of cost accounting...Ch. 2 - What kind of firm would use a job order cost...Ch. 2 - Which account is used in the job order cost system...Ch. 2 - What document is the source for (A) debiting the...Ch. 2 - What is a job cost sheet?Ch. 2 - Prob. 6DQCh. 2 - Discuss how the predetermined factory overhead...Ch. 2 - A. How is a predetermined factory overhead rate...Ch. 2 - Prob. 9DQCh. 2 - Describe how a job order cost system can be used...
Ch. 2 - Issuance of materials On May 7, Bergan Company...Ch. 2 - Direct labor costs During May, Bergan Company...Ch. 2 - Factory overhead costs During May, Bergan Company...Ch. 2 - Applying factory overhead Bergan Company estimates...Ch. 2 - Job costs At the end of May, Bergan Company had...Ch. 2 - Cost of goods sold Pine Creek Company completed...Ch. 2 - Transactions in a job order cost system Five...Ch. 2 - The following information is available for the...Ch. 2 - Cost of materials issuances under the FIFO method...Ch. 2 - Materials issued are as follows: Journalize the...Ch. 2 - Kingsford Furnishings Company manufactures...Ch. 2 - A summary of the time tickets is as follows:...Ch. 2 - Entry for factory labor costs The weekly time...Ch. 2 - Schumacher Industries Inc. manufactures...Ch. 2 - Eclipse Solar Company operates two factories. The...Ch. 2 - Exotic Engine Shop uses a job order cost system to...Ch. 2 - Predetermined factory overhead rate Poehling...Ch. 2 - The following account appears in the ledger prior...Ch. 2 - Collegiate Publishing Inc. began printing...Ch. 2 - The following events took place for Rushmore...Ch. 2 - Job order cost accounting for a service company...Ch. 2 - Job order cost accounting for a service company...Ch. 2 - Barnes Company uses a job order cost system. The...Ch. 2 - Entries and schedules for unfinished jobs and...Ch. 2 - Job cost sheet Remnant Carpet Company sells and...Ch. 2 - Analyzing manufacturing cost accounts Fire Rock...Ch. 2 - Prob. 5PACh. 2 - Entries for costs in a job order cost system Royal...Ch. 2 - Entries and schedules for unfinished jobs and...Ch. 2 - Job cost sheet Stretch and Trim Carpet Company...Ch. 2 - Analyzing manufacturing cost accounts Clapton...Ch. 2 - Flow of costs and income statement Technology...Ch. 2 - Antolini Enterprises produces mens sports coats...Ch. 2 - Alvarez Manufacturing Inc. is a job shop. The...Ch. 2 - Prob. 3MADCh. 2 - Prob. 4MADCh. 2 - Ethics in Action TAC Industries Inc. sells heavy...Ch. 2 - Prob. 2TIFCh. 2 - Communication Carol Creedence, the plant manager...Ch. 2 - RIRA Company makes attachments such as backhoes...Ch. 2 - Todd Lay just began working as a cost accountant...Ch. 2 - Baldwin Printing Company uses a job order cost...Ch. 2 - John Sheng, a cost accountant at Starlet Company,...Ch. 2 - Lucy Sportswear manufactures a specialty line of...Ch. 2 - Patterson Corporation expects to incur 70,000 of...
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- During 2025, Cullumber Company started a construction job with a contract price of $1,620,000. The job was completed in 2027. The following information is available. 2025 2026 2027 Costs incurred to date $373,700 $749,360 $1,070,000 Estimated costs to complete 636,300 352,640 -0- Billings to date 302,000 907,000 1,620,000 Collections to date 268,000 815,000 1,425,000 (b) Prepare all necessary journal entries for 2026. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For costs incurred use account Materials, Cash, Payables. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit (To record cost of construction.) (To record progress billings.) (To record collections.) (To recognize revenue.)arrow_forwardOn March 10, 2025, Carla Vista Company sold to Vaughn Hardware 220 tool sets at a price of $55 each (cost $29 per set) with terms of n/60, f.o.b. shipping point. Carla Vista allows Vaughn to return any unused tool sets within 60 days of purchase. Carla Vista estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2025, Vaughn returned 7 tool sets and received a credit to its account. (a) Prepare journal entries for Carla Vista to record (1) the sale on March 10, 2025, (2) the return on March 25, 2025, and (3) any adjusting entries required on March 31, 2025 (when Carla Vista prepares financial statements). Carla Vista believes the original estimate of returns is correct. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.…arrow_forwardCullumber Company sells goods on credit that cost $301,000 to Mark Company for $402,000 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $37,000. The standalone selling price of the goods is $365,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete. Date Account Titles and Explanation Jan. 2, 2025 Accounts Receivable Sales Revenue Unearned Service Revenue (To record sales on account) Jan. 2, 2025 Cost of Goods Sold (b). Inventory (To record cost of goods sold) Debit 402000 301000 Credit 365000 37000 301000 Cullumber prepares an income statement for the first quarter of 2025, ending on March 31, 2025 (installation was completed on June 18, 2025). How much revenue should Cullumber recognize related to its sale to Mark? First Quarter Sales revenue $ Cost of goods sold Gross profit $ LAarrow_forward
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