Glades Sporting Goods Co. operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales-Winter Sports Division $10,510,000 Sales-Summer Sports Division 13,615,000
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- The following information is available for Bandera Manufacturing Company for the month ending January 31:Cost of goods manufactured $4,490,000Selling expenses 530,000Administrative expenses 340,000Sales 6,600,000Finished goods inventory, January 1 880,000Finished goods inventory, January 31 775,000For the month ended January 31, determine Bandera’s (a) cost of goods sold, (b) gross profit, and (c) net income.Monty Corporation shipped $20,600 of merchandise on consignment to Gooch Company. Monty paid freight costs of $1,800. Gooch Company paid $550 for local advertising, which is reimbursable from Monty. By year-end, 63% of the merchandise had been sold for $21,500. Gooch notified Monty, retained a 10% commission, and remitted the cash due to Monty.Prepare Monty’s journal entry when the cash is received. (Round answers to 0 decimal places, e.g. 1,525. Credit account titles are automatically indented when 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.)The following represents the financial information for Plaza Plastics for May and June: June $636,000 Sales revenue Costs Scrap Process inspection Quality training Product testing equipment Field testing Warranty repairs Rework Preventive maintenance Legal expense for warranty claims Materials inspection Required A Required B Prevention May $ 843,000 % $ 2,160 3,040 23,940 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for May and June. June 5,340 8,580 3,540 Complete this question by entering your answers in the tabs below. % 19,940 16,380 7,980 11,460 Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for May and June. Note: Round your percentage answers to 1 decimal place (i.e., .321 as 32.1). May $ 1,870 1,920 11,880 4,500 6,480 3,240 16,830 8,730 4,500 11,340
- 5. XPac Sporting Goods Co. operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 2020, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Revenue/Expense Dollar Amount Sales-Winter Sports Division $11,250,000 Sales-Summer Sports Division Cost of Goods Sold-Winter Sports Division 13,750,000 6,100,000 Cost of Goods Sold-Summer Sports Division 7,777,000 1,680,000 1,840,000 Sales ExpenseWinter Sports Division Sales ExpenseSummer Sports Division Administrative Expense-Winter Sports Division Administrative Expense-Summer Sports Division Advertising Expense Transportation Expense Accounts Receivable Collection Expense Warehouse Expense 1,900,000 1,210,000 480,000 240,000 123,000 1,300,000 The bases to be used in allocating expenses, together with other essential information, are as follows: I. Advertising…Flint Corporation shipped $20,400 of merchandise on consignment to Gooch Company. Flint paid freight costs of $2,000. Gooch Company paid $480 for local advertising, which is reimbursable from Flint. By year-end, 62% of the merchandise had been sold for $21,500. Gooch notified Flint, retained a 10% commission, and remitted the cash due to Flint. Prepare Flint's journal entry when the cash is received. (Round answers to 0 decimal places, e.g. 1,525. Credit account titles are automatically indented when 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.) Account Titles and Explanation (To record the cash remitted to Flint.) (To record the cost of inventory sold on consignment.) Debit Ill CreditJansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales $ 605,000 Cost of goods sold 430,000 Salaries 112,000 ($25,600 is indirect) Utilities 17,200 ($5,100 is indirect) Depreciation 45,000 ($17,100 is indirect) Office expenses 22,800 (all indirect) 1. Prepare a departmental income statement for 2019.2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department?
- Blossom Corporation shipped $21,900 of merchandise on consignment to Cullumber Company. Blossom paid freight costs of $2,100. Cullumber Company paid $550 for local advertising, which is reimbursable from Blossom. By year-end, 65% of the merchandise had been sold for $21,900. Cullumber notified Blossom, retained a 10% commission, and remitted the cash due to Blossom. Prepare Blossom's journal entry when the cash is received. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record the cash remitted to Blossom.) (To record the cost of inventory sold on consignment.) Debit 11 Credit 1XSport Sporting Goods Co. operates two divisions—the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trialbalance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, includingthose for inventories, were recorded and posted:Sales—Winter Sports Division .......................................... $10,500,000Sales—Summer Sports Division ........................................ 13,600,000Cost of Goods Sold—Winter Sports Division ............................ 6,300,000Cost of Goods Sold—Summer Sports Division ........................... 7,888,000Sales Expense—Winter Sports Division ................................. 1,680,000Sales Expense—Summer Sports Division ............................... 1,904,000Administrative Expense—Winter Sports Division ........................ 1,050,000Administrative Expense—Summer Sports Division....................... 1,210,400Advertising Expense…The audit staff assigned to audit Commission on Sales Expenses totaling $2,000,000 used AnalyticalProcedures to audit said balance. Commissions are paid to the Sales Representatives that work for the company.They are required to sign a new employment contract every year which detail the terms of their engagement.Normally commissions are paid at a rate of 10% on sales generated by each Sales Representative. Total Sales forthe year amounted to $20,000,000 of which 50% was generated by the Sales Representatives.Perform a Reasonableness Test on the Commission on Sales Expense balance. Describe allsteps involved and advise what the auditor should do based on the results of the test.
- The following represents the financial information for Plaza Plastics for May and June: May June Sales revenue $ 747,000 $ 540,000 Costs Scrap $ 2,000 $ 1,710 Process inspection 2,880 1,760 Quality training 23,780 11,720 Product testing equipment 5,180 4,340 Field testing 8,420 6,320 Warranty repairs 3,380 3,080 Rework 19,780 16,670 Preventive maintenance 16,220 8,570 Legal expense for warranty claims 7,820 4,340 Materials inspection 11,300 11,180 Required: Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for May and JuneA condensed income statement for the Electronics Division of Gihbli Industries Inc. for the year ended December 31 is as follows: Sales $3,920,000 Cost of goods sold 2,625,200 Gross profit $ 1,294,800 Operating expenses 746,000 Income from operations $ 548,800 Invested assets $2,800,000 Assume that the Electronics Division received no charges from service departments. The president of Gihbli Industries Inc. has indicated that the division’s return on a $2,800,000 investment must be increased to at least 22.4% by the end of the next year if operations are to continue. The division manager is considering the following three proposals: Proposal 1: Transfer equipment with a book value of $560,000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would be less than the amount of depreciation expense on the old equipment by $100,800. This decrease in expense would be included as part of the cost of goods sold. Sales would remain…