MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 9, Problem 4PSB
Sadar Company operates a store with two departments: videos and music. Information about those departments follows.
| Videos Department | Music Department | |
| Sales…………………………….. | $370,500 | $279,500 |
| Cost of goods sold……….. | 320,000 | 175,000 |
| Direct expenses | ||
| Salaries…………………… | 35,000 | 25,000 |
| Maintenance………….. | 12,000 | 10,000 |
| Utilities…………………... | 5,000 | 4,500 |
| Insurance……………….. | 4,200 | 3,700 |
The company also incurred the following indirect costs.
| Advertising………………………….. | $15,000 |
| Salaries……………………………….. | 27,000 |
| Office expenses………………….. | 3,200 |
Indirect costs are allocated as follows: advertising on the basis of sales; salaries on the basis ofnumber pf employees; and office expenses on the basis of square footage. Additional information about the departments follows.
| Department | Square Footage | Numberof employees |
| Videos………………. | 5,000 | 3 |
| Music………………… | 3,000 | 2 |
Required
- For each department, determine the departmental contribution to overhead and the departmental net income.
- Should the video department be eliminated? Explain.
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MusicCity specializes in sound equipment. Company records indicate the following data for a line of speakers:
(Click the icon to view the data.)
Read the requirements.
Requirement 1. Determine the amounts that MusicCity should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO.
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Start by determining the amounts that MusicCity should report for cost of goods sold and ending inventory under a. FIFO.
FIFO method cost of goods sold =
FIFO method ending inventory =
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LIFO method cost of goods sold =
LIFO method ending inventory =
Requirement 2. MusicCity uses the FIFO method. Prepare the company's income statement for the month ended March 31, 2021, reporting
gross profit. Operating expenses totaled $260, and the income tax rate was 30%. (Round answers to the nearest dollar.)
The following is the year ended data for Tiger Company:
Sales Revenue
Cost of Goods Manufactured
Beginning Finished Goods Inventory
Ending Finished Goods Inventory
Selling Expenses
Administrative Expenses
What is the cost of goods available for sale?
O A. $5,700
OB. $29,300
OC. $26,700
O D. $24,300
$51,000
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MAKE THE NECCESSARY JOURNAL ENTRIES FOR THE FOLLOWING TRANSACTIONS...
1)Merchandise acquired cost is 114.000 +10 % VAT. Freight In was 6.000 TL +10% VAT Paid by the vendor.
Purchase is completed by endorsing a check.
2) Machinary is purchased for 326.000 TL + %10 VAT, Note is endorced for purchase . Transportation and
Installations invoice is 94.000 TL + %10 VAT half paid by check balance is on account.
3) Merchandise sold for 64.000 USD (rate 7.05 TL/ USD) + 10% VAT received note for sale. VAT paid cash. Cost
of good Sold is 235.000 TL
4) Bank Credit Memorandum states that , 95.000 TL issued check is collected from the Bank.
5) 24 month rent contract, Starting 1st April 2020 is signed for
384.000 TL. Prepayment is made by half check and half note issued,
6) 25.000 USD is paid (cash) by the customer for USD Merchandise sale. Rate is 7.15 TL/USD.
7) Customer transferred 85 .000 TL to the Bank, to close the open account
8) Customer ordered to purchase 270.000 TL + %10 VAT Merchandise .…
Chapter 9 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 9 - Prob. 1MCQCh. 9 - Prob. 2MCQCh. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - 5. Using the data in question 4, Department X’s...Ch. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQ
Ch. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Prob. 13DQCh. 9 - Prob. 14DQCh. 9 - Prob. 15DQCh. 9 - Prob. 16DQCh. 9 - Prob. 17DQCh. 9 - Prob. 18DQCh. 9 - Prob. 19DQCh. 9 - Prob. 20DQCh. 9 - Prob. 1QSCh. 9 - Prob. 2QSCh. 9 - Prob. 3QSCh. 9 - In each blank next to the following terms, place...Ch. 9 - Prob. 5QSCh. 9 - In each blank to the following terms, place the...Ch. 9 - Car Mart pays $130,000 rent ecah year for its...Ch. 9 - Prob. 8QSCh. 9 - Compute return on investment for each of the...Ch. 9 - Computing residual income A1 Refer to the...Ch. 9 - Prob. 11QSCh. 9 - Computing profit margin and investment turnover A2...Ch. 9 - Classify each the performance measures below into...Ch. 9 - Prob. 14QSCh. 9 - Prob. 15QSCh. 9 - Prob. 16QSCh. 9 - Prob. 17QSCh. 9 - Prob. 18QSCh. 9 - Prob. 19QSCh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Jansen Company reports the following for its ski...Ch. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Exercise 22-16 Performance measures-balanced...Ch. 9 - Oakwood Company produces maple bookcases to...Ch. 9 - Best Ink produces ink-jet printers for personal...Ch. 9 - The trailer division of Baxter Bicycles makes bike...Ch. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Prob. 21ECh. 9 - Prob. 1PSACh. 9 - National Bank has several departments that occupy...Ch. 9 - Prob. 3PSACh. 9 - Prob. 4PSACh. 9 - Prob. 5PSACh. 9 - Prob. 1PSBCh. 9 - Harmons has several departments that occupy all...Ch. 9 - Prob. 3PSBCh. 9 - Sadar Company operates a store with two...Ch. 9 - Prob. 5PSBCh. 9 - Santana Reys two departments, computer consulting...Ch. 9 - Prob. 1BTNCh. 9 - Prob. 2BTNCh. 9 - Prob. 3BTNCh. 9 - Prob. 4BTNCh. 9 - Prob. 5BTNCh. 9 - Prob. 6BTNCh. 9 - Brian Lintons company, United By Blue, sells...Ch. 9 - Prob. 8BTNCh. 9 - Prob. 9BTN
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