Only exercise 5-23 HOWWhat was the amount of gross profit?a.b. If total operating expenses were $5,000,000, could you determine net income?c. Is Customer Refunds Payable an asset, liability, or stockholders' equity account, and what is itsnormal balance?d. Is Estimated Returns Inventory an asset, liability, or stockholders' equity account, and what is itsnormal balance?EX 5-22 Adjusting entry for inventory shrinkageOmega Tire Co.'s perpetual inventory records indicate that $3,145,000 of merchandise shouldbe on hand on August 31, 20Y4. The physical inventory indicates that $3,113,500 of mer-chandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage forOmega Tire Co. for the fiscal year ended August 31, 20Y4.Obj. 3OWObj. 3• EX 5-23 Adjusting entry for customer refunds, allowances, and returnsScott Company had sales of $12,350,000 and related cost of goods sold of $7,500,000 for theyear ending December 31, 20Y8. Scott provides customers a refund for any returned or damagedmerchandise. Scott Company estimates that customers will request refunds for 0.8% of sales andestimates that merchandise costing $48,000 will be returned in 20Y9. Journalize the adjustingentries on December 31, 20Y8, to record the expected customer returns.Obj. 3EX 5-24 Adjusting entry for customer refunds, allowances, and returnsStatz Company had sales of $1,800,000 and related cost of goods sold of $1,150,000 for its firstyear of operations ending December 31, 20Y1. Statz provides customers a refund for any returnedor damaged merchandise. At the end of 20Y1, Statz Company estimates that customers will requestrefunds for 1.5% of sales and estimates that merchandise costing $16,000 will be returned. Assumethat on February 3, 20Y2, Buck Co. returned merchandise with an invoice amount of $5,000 fora cash refund. The returned merchandise originally cost Statz Company $3,100. (a) Journalize theadjusting entries on December 31, 20Y1, to record the expected customer returns. (b) Journalizethe entries to record the returned merchandise and cash refund to Buck Co. on February 3, 20Y2.EX 5-25 Income statement for retail businessObj. 4The following expenses were incurred by a retail business during the year. In which expense section ofstatement should each be reported: (a) selling, (b) administrative, or (c) other?

Journal entries refer to the symmetrically documenting the financial transactions of a company in…

Answered: EX 5-23 A Scott Comp year endin:…

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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Exercise 5-25 (Static) Activity Levels and Cost Drivers [LO 5-2] Shroeder Machine Shop has the following activities: Required: 1. Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity. 2. Identify a proper cost driver for each activity. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Identify a proper cost driver for each activity. (If an activity can be classified with more than one selection, choose the option that contains ALL the appropriate classifications.) Activities a. Machine operation b. Machine setup c. Production scheduling d. Materials receiving e. Research and development f. Machine maintenance g. Product design. h. Parts administration i. Final inspection of a sample of products j. Materials handling Cost Drivers Machine hours Number of setups or setup hours Number of production orders Number of material receipts; Number of purchase orders Number of products Number of machine…
EX 15-5 Concepts and terminology Obj. 1, 2, 4 From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: Advertising costs are usually viewed as (period, product) costs. Feedback is often used to (improve, direct) operations. Payments of cash or the commitment to pay cash in the future for the purpose of generating revenues are (costs, expenses). A product, sales territory, department, or activity to which costs are traced is called a (direct cost, cost object). The balance sheet of a manufacturer would include an account for (cost of goods sold, work in process inventory). Factory overhead costs combined with direct labor costs are called (prime, conversion) costs. The implementation of automatic, robotic factory equipment normally (increases, decreases) the direct labor EX 15-7 Classifying costs in a service company Obj. 2 A partial list of the costs for Wisconsin and Minnesota Railroad, a short hauler of freight,…
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8:23 W WY □ s21-1 ⠀⠀⠀ S21-1 Classifying costs Classify each cost by placing an X in the appropriate columns. The first cost is completed as an example. Learning Objective 1 a. Direct materials b. Direct labor c. Variable manufacturing overhead d. Fixed manufacturing overhead C Absorption Costing X QAA 1167/1480 Product Period Product Period Cost Cost Cost Cost Word >> Bit French 49,34% Variable Costing X ||| 0 < : X
Comprehensive Problem 5Part C: Note: This section is a continuation from Parts A and B of the comprehensive problem. Be sure you have completed Parts A and B before attempting Part C. You may have to refer back to data presented in Parts A and B as well as use answers from those parts when completing this section. Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case Cream base Variable 100 ozs. $0.02 $2.00 Natural oils Variable 30 ozs. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case…
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CH 19 Q 9 Entry for Issuing Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 103 Plastic 400 $29,190 104 Steel 402 39,720 105 Glue Indirect 2,360 106 Rubber 403 3,930 107 Titanium 404 88,680 Journalize the entry to record the issuance of materials. For a compound transaction, if an amount box does not require an entry, leave it blank. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9
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e Preview 4) F3 $ R 01- Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Category Price Cost of goods sold Gross profit F4 Customer service Project bidding Engineering support Total costs In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: S⁰5 Activity Number of service requests Number of bids Number of customer design changes Unit volume % Activity 3:0 F5 T Activity-base usage and unit volume information for the…
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SCM323 Class Activity 3 - MRP Based on the Example below, Identify the Material Requirements for the case given at the end. Example: A company is producing 2 products A and B. Bill of Materials for product A includes, Wood 2 CFT, Plastic 3Kg, Steel 10 Kg, Glue 0.2 Kg, Glass 5 SFT, while for Product B it is Wood 1.5 CFT, Plastic 3Kg, Steel 12 Kg , Glue 0.3kg and Glass 4SFT. Demand for product A is 500 units/month, and for Product B, it is 700 units/month. Calculate the total quantity of materials required for the production of both the items for next 1 month. Solution for the Example: MRP Materials Wood Plastic Steel Glue Glass Sr.# Product Unit CFT Kg Kg Kg SFT В.О.M 3 10 0.2 1 A Demand 500 500 500 500 500 Quantity 1000 1500 5000 100 2500 В.О.M 1.5 3 12 0.3 4 2 B Demand 700 700 700 700 700 Quantity 1050 2100 8400 210 2800 Total for one month 2050 3600 13400 310 5300 CFT Kg Kg Kg SFT Case to Solve : A company is producing 3 products A ,B and C. BOM of each product is given in the table…

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EX 5-23 A Scott Comp year endin: merchandis estimates t entries on