If a company recorded the following transaction-paid $150,000 of salaries and wages in cash (of which $80,000 was direct labor, $40,000 was indirect labor, and $30,000 was related to employees responsible for selling and which of the administration)-then following statements is true? Multiple Choice The Work in Process account would increase by $40,000. The Retained Earnings account would decrease by $40,000. The Work in Process account would increase $30,000. The Retained Earnings account would decrease by $30,000.

If a company recorded the following transaction-paid $150,000 of salaries and wages in cash (of which $80,000 was direct labor, $40,000 was indirect labor, and $30,000 was related to employees responsible for selling and which of the administration)-then following statements is true? Multiple Choice The Work in Process account would increase by $40,000. The Retained Earnings account would decrease by $40,000. The Work in Process account would increase $30,000. The Retained Earnings account would decrease by $30,000.

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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Jiminez Company engaged in the following transactions during May: a. Purchased raw materials for cash, $570 b. Used raw materials to begin jobs, $454 c. Paid wages of production employees, $350 d. Applied overhead at rate of $1.25 per direct labor dollar e. Completed job that had cost $490 f. Sold for $610 cash goods that had cost $465 to complete Required: Use the horizontal statements model provided to indicate how each of these events affected Jiminez's financial statements. Show dollar amounts of increases and decreases. Note: Round final answers to the nearest whole dollar. Enter decreases with a minus sign. Leave answer cells blank for any item not affected by the transaction. Event a. b. C. d. e. f. Cash + Raw Materials + + + + + + + + + + + BALANCE SHEET Assets Work in Process + + + + + Finished Goods + + + + + Manufacturing Overhead Stockholders' Equity = = Net Income
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Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,040 Labor expense 41,580 Sales 190,000 Research and development (uncontrollable) 310 Depreciation expense 18,000 Net income/(loss) ? Cost of goods sold 119,700 Selling expense 1,260 Total expenses ? Marketing costs (uncontrollable) 780 Administrative expense 680 Income tax expense (21% of pretax income) ? Other expenses 320 A. Prepare the income statement using the above information. Round your answers to the nearest dollar. B.Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital.…
A partial listing of costs incurred during February at Urfer Corporation appears below: Factory supplies...... $9,000 Administrative wages and salaries.... Direct materials....... Sales staff salaries Factory depreciation.......... Corporate headquarters building rent Indirect labor ........ Marketing... Direct labor...... O $379,000 O $277,000 O $61,000 O $318,000 C Previous GEORHIGHWA permane HON D O DELICIO FEINHE avere Junien C The total of the period costs listed above for February is: CONTA F A $106.000 $142.000 $53,000 $28.000 $30.000 $24.000 $129,000 $74,000 Next
Consider the following data for Sintek Inc. Sales in units Sales revenue Direct materials Direct labour Manufacturing overhead Sales commission Other selling expenses Administrative expenses January 4,000 $400,000 72,000 88,000 50,000 28,000 40,000 32,000 X February March 4,500 5,000 $450,000 $500,000 81,000 90,000 99,000 110,000 52,000 55,000 31,500 35,000 41,000 42,000 32,000 32,000 Required: Write the cost equation for manufacturing overhead. (Round your answer to 2 decimal places.)
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Prepare a schedule of cost of goods manufactured and an income statement for YNP corporation as of December 31, 2018. List whether the following fall primarily under managerial or financial accounting.
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am. 514.
Morrison Company Balance Sheet January 1 Assets Cash $ 40,950 Raw materials Work in process Finished goods Prepaid expenses Property, plant, and equipment (net) $ 17,800 6,600 31,800 56, 200 3,350 124,000 $ 224,500 Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings $ 7,100 217,400 Total liabilities and stockholders' equity $ 224,500 During January the company completed the following transactions: a. Purchased raw materials on account, $75,200. b. Raw materials used in production, $91,500 ($80,200 was direct materials and $11,300 was indirect materials). c. Paid $202.100 of salaries and wages in cash ($108,800 was direct labor, $41,700 was indirect labor, and $51,600 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs incurred (on account) to support production, $43,350. e. Depreciation recorded on property, plant, and equipment, $63,600 (70% related to manufacturing equipment and 30% related to…
Lawson Manufacturing Company has the following account balances at year end: Office supplies Raw materials Work-in-process $ 4,000 25,000 61,000 Finished goods 109,000 Prepaid insurance 6,000 What amount should Lawson report as inventories in its balance sheet?
Walter Company has the following information for the month of March: $ 17,520 40,450 23,100 Cash balance, March 1 Collections from customers Paid to suppliers Manufacturing overhead Direct labor Selling and administrative expenses Walter pays wages and other cash expenses in the month incurred. Manufacturing overhead includes $1,600 for machinery depreciation, but the amount for selling and administrative expenses is exclusive of depreciation. Additionally, Walter also expects to buy a piece of property for $7.800 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $10,000. Required: Prepare Walter's cash budget for the month of March. 6,900 8,650 5,000 Beginning Cash Balance Budgeted Cash Receipts Budgeted Cash Payments Preliminary Cash Balance Cash Borrowed Ending cash balance 4