During 2020, Bramble Furniture Limited purchased a railway carload of wicker chairs. The manufacturer of the chairs sold them to Bramble for a lump sum of $58,600, because it was discontinuing manufacturing operations and wanted to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are as follows: Type Lounge chairs Straight chairs Armchairs No. of Chairs 470 Total costs 660 $ 350 Your answer is incorrect. Bramble estimates that the costs to sell this inventory would be $4 per chair. During 2020, Bramble sells 390 lounge chairs. 260 armchairs, and 140 straight chairs, all at the same prices as estimated. At December 31, 2020, the remaining chairs were put on sale: the lounge chairs at 25% off the regular price, the armchairs at 30% off, and the straight chairs at 40% off All were expected to be sold at these prices. What is the total cost of the chairs remaining in inventory at the end of 2020, using the relative sales value method? (Round percentages to 1 decimal place, eg. 52.7% and all other amounts to 2 decimal places, eg 52.75 Estimated Selling Price per Chair $95 55 eTextbook and Media 85 Your answer is incorrect.

During 2020, Bramble Furniture Limited purchased a railway carload of wicker chairs. The manufacturer of the chairs sold them to Bramble for a lump sum of $58,600, because it was discontinuing manufacturing operations and wanted to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are as follows: Type Lounge chairs Straight chairs Armchairs No. of Chairs 470 Total costs 660 $ 350 Your answer is incorrect. Bramble estimates that the costs to sell this inventory would be $4 per chair. During 2020, Bramble sells 390 lounge chairs. 260 armchairs, and 140 straight chairs, all at the same prices as estimated. At December 31, 2020, the remaining chairs were put on sale: the lounge chairs at 25% off the regular price, the armchairs at 30% off, and the straight chairs at 40% off All were expected to be sold at these prices. What is the total cost of the chairs remaining in inventory at the end of 2020, using the relative sales value method? (Round percentages to 1 decimal place, eg. 52.7% and all other amounts to 2 decimal places, eg 52.75 Estimated Selling Price per Chair $95 55 eTextbook and Media 85 Your answer is incorrect.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The followinginformation to a single part which is used in the production of a wind instrument. The business earnedOperating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is underpressure from shareholders to increase operating income in 2020 and is therefore considering theimplementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows:Variable expenses per unit: Direct Material $58Direct Labour $74Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000Fixed Selling Costs $65,000Fixed Administrative Costs $160,000 f) Assume that as a result of reorganizing the production process, the management of BenoitManufacturing was able to reduce direct material cost per unit by $5 due to a change in the supplier ofthe raw material…
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On March 10, 20X1, Indigo Company sold to Barr Hardware 230 tool sets at a price of $54 each (cost $28 per set) with terms of n/60, f.o.b. shipping point. Indigo allows Barr to return any unused tool sets within 60 days of purchase. Indigo 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, 20X1, Barr returned 6 tool sets and received a credit to its account. Prepare journal entries for Indigo to record (1) the sale on March 10, 20X1, (2) the return on March 25, 20X1, and (3) any adjusting entries required on March 31, 20X1 (when Indigo prepares financial statements). Indigo believes the original estimate of returns is correct. Two journal entries are needed for each part, thus six total journal entries.
B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $382,400 with a 8-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 152,960 units of the equipment's product each year. The expected annual income related to this equipment follows. Sales 239,000 Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses 84,000 47,800 23,900 155,700 Pretax income 83,300 24,990 Income taxes (30%) Net income 58,310 If at least an 8% return on this investment must be earned, compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: n = PV Factor Select Chart Amount Present Value X 106,110 Present Value of an Annuity of 1 0 Present…
Exercise 3-9 Applying Overhead; T-accounts; Journal Entries (LO3-1, LO3-2, LO3-4] Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.80 per machine-hour was based on a cost formula that estimates $232,400 of total manufacturing overhead for an estimated activity level of 83,000 machine-hours. Required: 1. Assume that during the year the company works only 78,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. 2B. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.
IT Company has 15,000 units in inventory that had a production cost of P3 per unit. These units cannot be sold through normal channels due to a significant technology change. These units could be reworked at a total cost of P23,000 and sold for P28,000. Another alternative is to sell the units to a junk dealer for P8,500. The relevant cost for IT Company to consider in making its decision is A.P45,000 of original product costs B.P23,000 for reworking the units C.P68,000 for reworking the units D.P28,000 for selling the units to the junk dealer
On March 10, 2020, Pharoah Company sold to Barr Hardware 180 tool sets at a price of $51 each (cost $29 per set) with terms of n/60, f.o.b. shipping point. Pharoah allows Barr to return any unused tool sets within 60 days of purchase. Pharoah 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, 2020, Barr returned 6 tool sets and received a credit to its account. (a) Prepare journal entries for Pharoah to record (1) the sale on March 10, 2020, (2) the return on March 25, 2020, and (3) any adjusting entries required on March 31, 2020 (when Pharoah prepares financial statements). Pharoah 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 0 for the amounts.) No. Account Titles and…
genow.com/ilm/takeAssignment/takeAssignmentMain.do?inprogress-true stom Order ♥ e < eBook costs. Gilroy Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,200. The freight and installation costs for the equipment are $650. If purchased, annual repairs and maintenance are estimated to be $430 per year over the 4-year useful life of the equipment. Alternatively, Gilroy can lease the equipment from a domestic supplier for $1,580 per year for 4 years, with no additional Unit costs: Purchase price Freight and installation Repair and maintenance (4 years) Lease (4 years) Prepare a differential analysis dated December 11 to determine whether Gilroy should Lease Equipment (Alternative 1) or Buy Equipment (Alternative 2). Hint: This is a lease-or-buy decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner. If an amount is zero, enter "0". For those boxes in which you must enter…
Answer the following questions. 1. 2. A company has an inventory of 1,050 assorted parts for a line of missiles that has been discontinued. The inventory cost is $73,000. The parts can be either (a) remachined at total additional costs of $25,500 and then sold for $32,500 or (b) sold as scrap for $2,500. Which action is more profitable? Show your calculations. A truck, costing $104,500 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $16,000 cash and replaced with a similar truck costing $106,000 or (b) rebuilt for $82,000, and thus be brand-new as far as operating characteristics and looks are concemed. Which action is less costly? Show your calculations 1. A company has an inventory of 1,050 assorted parts for a line of missiles that has been discontinued. The inventory cost is $73,000. The parts can be either (a) remachined at total additional costs of $25,500 and then sold for $32,500 or (b) sold as scrap for $2,500. Which action is more…
22. Basiclang Company is assessing whether to sell its unused car parts for P27,000. The parts were previously purchased for P100,000. The company will incur refurbishing costs of P15,000 to be able to sell them. Which alternative should the company pursue? Group of answer choices b. a. The company is indiferrent c. Sell, there is an incremental benefit of P12,000 d. Sell, there is an incremental benefit of P27,000 e. Don’t sell, it will incur a loss of P73,000