Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2, Problem 13E
Collegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory
Journalize the summary entry to record each of the following operations for March (one entry for each operation):
- a. Direct and indirect materials used.
- b. Direct and indirect labor used.
- c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).
- d. Completion of Jobs 301 and 302.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
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.)
On 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.…
Cullumber 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
$
LA
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...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Cullumber 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. (a) Prepare the journal entries (if any) to record the sale on January 2, 2025. (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. List all debit entries before credit entries.) Date Account Titles and Explanation Jan. 2, 2025 Jan. 2, 2025 (To record sales on account) (To record cost of goods sold) Debit Creditarrow_forwardThere are two main categories of statistics: inferential statistics and descriptive statistics. What is inferential statistics? Can you give an example of its use?arrow_forwardWhat is the Empirical Rule and why is it important?arrow_forward
- discuss the difficulty companies face in identifying the five steps of revenue recognition given the judgmental nature of each process.arrow_forwardItems 1 through 6 below present various internal control strengths or internal control deficiencies. For each, indicate whether the item represents an internal control strength for the revenue cycle. internal control deficiency for the revenue cycle. For each item that you answered (B), explain the nature of the deficiency. Required Complete the table below Cash receipts received in the mail are received by a secretary with no record-keeping responsibility. Cash receipts received in the mail are forwarded unopened with remittance advices to accounting. The cash receipts journal is prepared by the treasurer’s department. Cash is deposited weekly.arrow_forwardItems 1 through 6 below present various internal control strengths or internal control deficiencies. For each, indicate whether the item represents an A. internal control strength for the revenue cycle. B. internal control deficiency for the revenue cycle. C. For each item that you answered (B), explain the nature of the deficiency. Required 1. Complete the table below Item Strength/ Deficiency If deficient, explain and provide a recommendation to improve the deficiency Example: Write-offs of accounts receivable are approved by the controller. Deficiency This is an inappropriate segregation of duties. The controller has recordkeeping responsibilities. The write-off of accounts involves authorization responsibilities. The write-offs should be approved by the credit department, not the controller. Once shipment occurs and is recorded in the sales journal, all shipping documents are marked "recorded" by the accounting staff. Sales returns are presented to a sales department clerk who…arrow_forward
- Items 1 through 6 below present various internal control strengths or internal control deficiencies. For each, indicate whether the item represents an internal control strength for the revenue cycle. internal control deficiency for the revenue cycle. For each item that you answered (B), explain the nature of the deficiency. Required Complete the table below Item Strength/ Deficiency If deficient, explain and provide a recommendation to improve the deficiency Example: Write-offs of accounts receivable are approved by the controller. Deficiency This is an inappropriate segregation of duties. The controller has recordkeeping responsibilities. The write-off of accounts involves authorization responsibilities. The write-offs should be approved by the credit department, not the controller. Once shipment occurs and is recorded in the sales journal, all shipping documents are marked “recorded” by the accounting staff. Sales returns are…arrow_forwardBean Counter, LLP, has served for over 10 years as the auditor of the financial statements of Penny for Your Thoughts Credit Union. The firm is conducting its audit planning for the current fiscal year and is in the process of performing risk assessment procedures. Based on inquiries and other information obtained, the auditors learned that the credit union is finalizing an acquisition of a smaller credit union located in another region of the province. Management anticipates that the transaction will close in the third quarter, and, while there will be some challenges in integrating the IT systems of the acquired credit union with Penny for Your Thoughts systems, the bank should realize a number of operational cost savings over the long term. During the past year, the credit union has expanded its online service options for customers, who can now remotely deposit funds into and withdraw funds from chequing and savings accounts. The system has been well received by customers and the…arrow_forwardBean Counter, LLP, has served for over 10 years as the auditor of the financial statements of Penny for Your Thoughts Credit Union. The firm is conducting its audit planning for the current fiscal year and is in the process of performing risk assessment procedures. Based on inquiries and other information obtained, the auditors learned that the credit union is finalizing an acquisition of a smaller credit union located in another region of the province. Management anticipates that the transaction will close in the third quarter, and, while there will be some challenges in integrating the IT systems of the acquired credit union with Penny for Your Thoughts systems, the bank should realize a number of operational cost savings over the long term. During the past year, the credit union has expanded its online service options for customers, who can now remotely deposit funds into and withdraw funds from chequing and savings accounts. The system has been well received by customers and the…arrow_forward
- For each scenario, identify possible audit engagement acceptance/continuance risk(s) (A–F). Audit engagement acceptance/continuance risk(s): Firm’s ability to audit client (scope limitation) Firm’s reputation risk Non-compliance with ethical standards Additional duty of care/increased legal exposure Auditor’s lack of sufficient expertise in relation to the industry Integrity of management Note: Each scenario will have one or multiple risks that need to be considered. Scenario Risk(s) SuperService Inc. offers electronics repair service and is required by its bank to have an audit for the first time. The bank has agreed to provide a loan to SuperService Inc. if it adheres to the covenant requirements, which include providing a set of audited financial statements. FastMoney Inc. has just fired its current auditor, citing that it was not happy with the services that it was receiving. FastMoney Inc. is a short-term loan company that has grown rapidly. The…arrow_forwardFor each scenario, identify possible audit engagement acceptance/continuance risk(s) (A–F). Audit engagement acceptance/continuance risk(s): Firm’s ability to audit client (scope limitation) Firm’s reputation risk Non-compliance with ethical standards Additional duty of care/increased legal exposure Auditor’s lack of sufficient expertise in relation to the industry Integrity of management Note: Each scenario will have one or multiple risks that need to be considered. Scenario Risk(s) SuperService Inc. offers electronics repair service and is required by its bank to have an audit for the first time. The bank has agreed to provide a loan to SuperService Inc. if it adheres to the covenant requirements, which include providing a set of audited financial statements. FastMoney Inc. has just fired its current auditor, citing that it was not happy with the services that it was receiving. FastMoney Inc. is a short-term loan company that has grown rapidly. The…arrow_forwardThe following audit procedures were performed in the audit of inventory. The audit procedures assume the auditor has obtained the inventory count records that list the client’s inventory. The balance assertions are also included. AUDIT PROCEDURES Using audit software, extend unit prices times quantity, foot the extensions, and compare the total with the general ledger. Trace selected quantities from the inventory listing to the physical inventory to make sure the items exist and the quantities are the same. Question operating personnel about the possibility of obsolete or slow-moving inventory. Select a sample of quantities of inventory in the factory warehouse, and trace each item to the inventory count sheets to determine if it has been included and if the quantity and description are correct. Using both this year’s and last year’s inventory data files, compare quantities on hand and unit prices, printing any with greater than a 30 percent or $15,000 variation from…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY