College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 27, Problem 1MC
LO2 The adjustment for the amount of factory supplies used during the year includes a
- (a) debit to Factory Supplies.
- (b) debit to Factory
Overhead . - (c) credit to Factory Overhead.
- (d) debit to Supplies Expense.
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#39
ASTON VILLA Publishing Company manufactures accounting books. For the year just ended, the Company reported the following amounts:
What is the amount of cost of goods manufactured?
What is the amount of cost of goods sold?
What is the amount of cost of goods sold?
Q2. Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem. a. Preparing the weekly payroll for manufacturing personnel b. Releasing raw materials for use in the manufacturing cycle c. Recording the receipt of payment for goods sold d. Recording the order placed by a customer e. Ordering raw materials f. Determining the amount of raw materials to order?
1. Determine whether overhead was under- or overapplied during the year in the Assembly Department.
2. If the company disposes of under- or overapplied overhead as an adjustment to Cost of Goods Sold, would the company’s Cost of Goods Sold account increase or decrease?
Chapter 27 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 27 - Prob. 1TFCh. 27 - Under the perpetual inventory system, Cost of...Ch. 27 - Prob. 3TFCh. 27 - Prob. 4TFCh. 27 - The adjustment for factory overhead applied to...Ch. 27 - LO2 The adjustment for the amount of factory...Ch. 27 - The adjustment for depreciation expense for the...Ch. 27 - At the end of the accounting period, a credit...Ch. 27 - Prob. 4MCCh. 27 - Prob. 5MC
Ch. 27 - LO2 Prepare adjusting entries at December 31 for J...Ch. 27 - Prob. 2CECh. 27 - Prob. 3CECh. 27 - Prob. 1RQCh. 27 - Prob. 2RQCh. 27 - Prob. 3RQCh. 27 - Prob. 4RQCh. 27 - Prob. 5RQCh. 27 - What are the distinctive features of ToyJoys...Ch. 27 - Prob. 7RQCh. 27 - Prob. 8RQCh. 27 - Prob. 9RQCh. 27 - ADJUSTING ENTRIES INCLUDING ADJUSTMENT FOR...Ch. 27 - Prob. 2SEACh. 27 - ADJUSTING JOURNAL ENTRIES Prepare the December 31...Ch. 27 - CLOSING JOURNAL ENTRIES Prepare closing journal...Ch. 27 - REVERSING JOURNAL ENTRIES Prepare reversing...Ch. 27 - WORK SHEET, ADJUSTING ENTRIES, AND FINANCIAL...Ch. 27 - FINANCIAL STATEMENTS The Income Statement and...Ch. 27 - ADJUSTING, CLOSING, AND REVERSING ENTRIES A...Ch. 27 - ADJUSTING ENTRIES INCLUDING ADJUSTMENT FOR...Ch. 27 - Prob. 2SEBCh. 27 - Prob. 3SEBCh. 27 - Prob. 4SEBCh. 27 - REVERSING ENTRIES Prepare reversing journal...Ch. 27 - SPREADSHEET, ADJUSTING ENTRIES, AND FINANCIAL...Ch. 27 - FINANCIAL STATEMENTS The Income Statement and...Ch. 27 - Prob. 8SPBCh. 27 - Prob. 1MYWCh. 27 - Reese Manufacturing Company manufactures and sells...Ch. 27 - Drafts of the condensed income statement and...
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- LO2 Prepare adjusting entries at December 31 for J P Company based on the following data. (a) Factory overhead is applied at a rate of 75% of direct labor costs. At the end of the year, the direct labor costs associated with the jobs in process totaled 8,000. (b) A physical count of factory supplies at the end of the year shows that 4,920 of factory supplies were used during the year. (c) Depreciation expense for the year on the factory building was 8,700 and on factory equipment was 11,600, a total of 20,300. (d) The factory overhead account has a debit balance of 186,500 and a credit balance of 183,900 [after recording adjustments (a) through (c)].arrow_forwardLO1 As part of the adjustment of supplies, an expense account is debited and Supplies is credited for the amount of supplies used during the accounting period.arrow_forwardK. What is the journal entry to record the cost of goods sold referred to above? L. What is the ending balance in Finished Goods ? (Show T-Account ) M. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year? N. What is the gross margin for the year ? O. What is the net operating income for the year ?arrow_forward
- L. What is the ending balance in Finished Goods ? (Show T-Account ) M. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year? N. What is the gross margin for the year ? O. What is the net operating income for the year ?arrow_forward1.Based on the data above. What is the cost of goods sold on January 1,2020? 2.Based on the data above. What is work in process on January 1, 2020?arrow_forwardFor each of the following, identify which expense recognition approach should be used to recognize thecost as expense.a. The cost of producing a productb. The cost of advertisingc. The cost of monthly rent on the office buildingd. The salary of an office employeee. Depreciation on an office buildingarrow_forward
- At the end of the year, Metro, Inc. has an unadjusted credit balance in the Manufacturing Overhead account of $820. Which of the following is the year−end adjusting entry needed to adjust the account? A. A debit to Cost of Goods Sold of $820 and a credit to Manufacturing Overhead of $820 B. A debit to Cost of Goods Sold of $820 and a credit to Finished Goods Inventory of $820 C. A debit to Manufacturing Overhead of $820 and a credit to Cost of Goods Sold of $820 D. A debit to Manufacturing Overhead of $820 and a credit to Finished Goods Inventory of $820arrow_forward1.Based on the data above. What is the cost of goods manufactured during the current year? 2.Based on the data above. What is the over or under application of overhead?arrow_forwardDuring an accounting period, which production account is debited and credited many times? A. Manufacturing overhead applied B. Manufacturing overhead control C. Both D. Neitherarrow_forward
- 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.arrow_forwardWhich of the following accounts does a manufacturing company have that a service company does not have? a. Advertising Expense b. Salaries Payable c. Cost of Goods Sold d. Retained Earningsarrow_forwardIs manufacturing overhead underapplied or overapplied for the year? By how much? What is the cost of goods available for sale during the year? (Show complete calculations) What is the journal entry to record the cost of goods sold referred to above? What is the ending balance in Finished Goods? (Show T-Account) Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year? What is the gross margin for the year? What is the net operating income for the year?arrow_forward
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