1. Assume that a laborer dropped 420 cases. Suppose part of the 420 cases could be sold to a nearby prison for $420 cash. Prepare a journal entry to record this event. Calculate the unit cost of the remaining 1,680 cases. 2. Refer to the original data. Tasters rejected 420 cases that had insufficient salt. The product can be placed in a vat, salt can be added, and the product can be reprocessed into jars. This operation, which is considered normal, will cost $420. Prepare a journal entry to record this event and do the following: a. Calculate the unit cost of all the cases if this additional cost was incurred because of the exacting specifications of this particular job. b. Calculate the unit cost of all the cases if this additional cost occurs regularly because of difficulty in seasoning. c. Are unit costs the same in requirements 2a and 2b?

1. Assume that a laborer dropped 420 cases. Suppose part of the 420 cases could be sold to a nearby prison for $420 cash. Prepare a journal entry to record this event. Calculate the unit cost of the remaining 1,680 cases. 2. Refer to the original data. Tasters rejected 420 cases that had insufficient salt. The product can be placed in a vat, salt can be added, and the product can be reprocessed into jars. This operation, which is considered normal, will cost $420. Prepare a journal entry to record this event and do the following: a. Calculate the unit cost of all the cases if this additional cost was incurred because of the exacting specifications of this particular job. b. Calculate the unit cost of all the cases if this additional cost occurs regularly because of difficulty in seasoning. c. Are unit costs the same in requirements 2a and 2b?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Pace Labs. Inc. provides mad cow disease testing for both state and federal governmental, agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Pace Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.46 per tube) $ 2.92 Direct Labor (1 hour @ $24 per hour) 24.00 Variable overhead (1 hour @ $6 per hour) 6.00 Fixed overhead (1 hour @ $10 per hour) 10.00 Total standard cost per test $42.92 The lab does not maintain an inventory of test tubes. Therefore, the tubes purchased each month are used that month. Actual activity for the month of November 2014, when 1,500 tests were conducted, resulted in the following. Direct materials (3,050 test…
An IE works in the automation department of a surgical equipment manufacturing company that produces specially ordered equipment for hospitals. To upgrade the quality of the assembly process of the camera used in laparoscopic surgery probes, two approaches are available: make and buy. The make alternative has an initial equipment cost of $175,000, a life of 5 years, a $25,000 salvage value, a processing cost of $3,000 per camera, and an M&O cost of $65,000. The buy alternative requires contracting the assembly operation externally at a cost of $6,000 per camera. If the MARR is 12% per year, how many cameras per year must be assembled to justify the make alternative? cameras must be assembled per year to justify the make alternative.
I need requirement A-C please.
Pace Labs. Inc. provides mad cow disease testing for both state and federal governmental, agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Pace Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.46 per tube) $ 2.92 Direct Labor (1 hour @ $24 per hour) 24.00 Variable overhead (1 hour @ $6 per hour) 6.00 Fixed overhead (1 hour @ $10 per hour) 10.00 Total standard cost per test $42.92 The lab does not maintain an inventory of test tubes. Therefore, the tubes purchased each month are used that month. Actual activity for the month of November 2014, when 1,500 tests were conducted, resulted in the following. Direct materials (3,050 test…
A volunteer has been asked to drop off some supplies at a facility housing victims of a hurricane evacuation. The volunteer would like to bring at least 240 bottles of water, 117 first aid kits, and 83 security blankets on his visit. The relief organization has a standing agreement with two companies that provide victim packages. Company A can provide packages of 21 water bottles, 9 first aid kits, and 7 security blankets at a cost of $2. Company B can provide packages of 8 water bottles, 5 first aid kits, and 3 security blankets at a cost of $1.50. How many of each package should the volunteer pick up to minimize the cost? What amount does the relief organization pay? Answer Enter the value in the first box and the ordered pair in the second box. Minimum Cost of S Minimum Cost at Tables Keypad Keyboard Shortcuts
Rene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour for each chest. The next employee takes the wood and cuts it to the proper size. This takes 30 minutes. The next employee assembles and sands the chest. Assembly takes 2 hours. The chest then goes to the finishing department. It takes 1.5 hours to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $14.50. A. What are the standard hours per chest? Standard hour per chest fill in the blank 1 hours B. What is the standard cost per chest for labor? Round your answer to two decimal places. Standard cost per chest $fill in the blank 2
A hospital germ-fighting and floor cleaning robot, named Maurice, costs $104,000. Patients are billed $1 per day for Maurice’s use and upkeep. A certain 300-bed hospital is considering purchasing this robot. What is the simple payback period for Maurice? What assumptions did you make?
As production manager, Paul noticed that several recent production runs generated a decent-sized collection of scrap pieces in the designated scrap bin. He looks at current prices for this scrap and recognizes the market price is relatively high for this material right now, so he makes plans to sell it. He estimates that there are 51 pounds of scrap available to be sold. The current sales price is $10 per pound for this particular scrap material. (a) Assume Paul uses the sales method to account for scrap. Record the journal entry for the sale of all the scrap for cash. (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 0 for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit