Do not give answer in image Riverbed makes and delivers delicious meals, either ordered directly off its menu or customized to its customers' specifications (e.g.,meatless or with jalapeños). The company sells its meals to individual households as well as businesses and organizations throughoutthe metro area.In determining its financial situation at the end of April, Riverbed's accountant considered the jobs in process at the beginning of themonth, along with costs and work done on jobs throughout April, and tallied costs to date on jobs that were not yet finished at the endof April, as follows.2.3.4.5.At March 31, Job #120 was the only job in inventory, and it was not yet finished. At that point, it had direct material costs of$52 and had used 27 direct labor hours.During April, Riverbed requisitioned the followed direct materials costs for these jobs: $700 for Job #120, $460 for Job# 121, and $990 for Job #122.During April, Riverbed used the following direct labor hours for these jobs: 56 hours for Job # 120, 134 hours for Job #121,and 169 hours for Job #122.During April, the following MOH costs were recognized: depreciation on plant assets $1,940, utility costs for the plant yet tobe paid $560, and salary for plant supervisor $2,940 ($1,470 had been paid; $1,470 was accrued).By the end of April, Job # 120 had been completed and sold (on credit), Job # 121 was completed but not yet sold, and Job# 122 had not yet been completed.Riverbed's direct labor cost is $15/hour. It allocates MOH on the basis of direct labor hours. At the beginning of the year, the companyexpected total MOH costs to be $176,960 and direct labor hours to be 12,640. Riverbed sets its selling price at 150% of its productcosts. Record the journal entries to capture the above April transactions. (Credit account titles are automatically indented when the amountis entered. Do not indent manually. List all debit entries before credit entries. Round answers to 2 decimal places, e.g. 5,275.25.)Account Titles and ExplanationWIP Inventory-#120WIP Inventory-#121WIP Inventory-#122RM Inventory(To record DM costs incurred for each job)WIP Inventory-#120WIP Inventory-# 121WIP Inventory-#122Salaries and Wages Payable(To record DM costs incurred for each job recognizing the hourlyrate)WIP Inventory-# 120WIP Inventory-#121WIP Inventory-#122MOH Control(To record applied MOH for each job)MOH Control(To record applied MOH for each job)MOH ControlAccumulated Depreciation ✓Utilities PayableCashSalaries and Wages Payable(To record actual MOH incurred for each job)FG Inventory-# 120WIP Inventory-#120(To record total cost of Job#120 completed in April)FG Inventory-#121WIP Inventory-#121(To record total cost of Job# 121 completed in April)Accounts ReceivableSales Revenue(To record sale of Job#120)VCost of Goods SoldFG Inventory-# 120(To record total cost of Job#120 sold)Debit70046099084020102535784187623665440FULULLO 01 00 0054404346Credit2150**538550261940560147014704346

Journal entry records the accounting transactions of a business in a journal book. All the business…

Riverbed makes and delivers delicious meals, either ordered directly off its menu or customized to its customers' specifications (e.g., meatless or with jalapeños). The company sells its meals to individual households as well as businesses and organizations throughout the metro area.

Riverbed makes and delivers delicious meals, either ordered directly off its menu or customized to its customers' specifications (e.g., meatless or with jalapeños). The company sells its meals to individual households as well as businesses and organizations throughout the metro area.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 1CE: Ventana Window and Wall Treatments Company provides draperies, shades, and various window...

See similar textbooks

Similar questions

Ventana Window and Wall Treatments Company provides draperies, shades, and various window treatments. Ventana works with the customer to design the appropriate window treatment, places the order, and installs the finished product. Direct materials and direct labor costs are easy to trace to the jobs. Ventanas income statement for last year is as follows: Ventana wants to find a markup on cost of goods sold that will allow them to earn about the same amount of profit on each job as was earned last year. Required: 1. What is the markup on cost of goods sold (COGS) that will maintain the same profit as last year? (Round the percentage to two significant digits.) 2. A customer orders draperies and shades for a remodeling job. The job will have the following costs: What is the price that Ventana will quote given the markup percentage calculated in Requirement 1? (Round the price to the nearest dollar.) 3. What if Ventana wants to calculate a markup on direct materials cost, since it is the largest cost of doing business? What is the markup on direct materials cost that will maintain the same profit as last year? (Round the percentage to two significant digits.) What is the bid price Ventana will use for the job given in Requirement 2 if the markup percentage is calculated on the basis of direct materials cost? (Round to the nearest dollar.)
Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: It estimates there will be five orders in the next year, and those jobs will involve: What is the total cost of the jobs?
Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: Box Springs estimates there will be four orders in the next year, and those jobs will involve: What is the total cost of the jobs?
Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiners master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employers share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the companys union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: Required: 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. Be sure to show supporting calculations. a. Production budget in units b. Direct labor budget in hours c. Direct materials cost budget d. Sales budget 2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. Be sure to show supporting calculations. (CMA adapted)
You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotless. Inc., a janitorial service company. Spotless will provide all of Time Treasures janitorial services, including sweeping floors, hauling trash, washing windows, stocking restrooms, and performing minor repairs. Time Treasures will be billed at an hourly rate based on the type of service performed. The work of common laborers (sweeping, hauling trash) is to be billed at $8 per hour. More skilled (repairs) and more dangerous work (washing outside windows on the 23rd floor) are to be billed at $18 per hour. Supervisory time is to be billed at $20 per hour. Spotless will submit monthly invoices, which will show the number and types of hours for which Time Treasures is being charged. The outsourcing contract is simple and straightforward. A. What are some of the internal control problems you foresee as a result of our sourcing the janitorial service with this contract? B. Explain recommendations to control risk that would you suggest after reviewing the contract.
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $9,340. The company expected to work 150 jobs in February, but actually worked 158 jobs. Advertising expenses Insurance Miscellaneous expenses Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no…
Viviana's Foods produces frozen meals that it sells for $15 each. The company computes a new monthly fixed manufacturing overhead allocation rate based on the planned number of meals to be produced that month. Assume all costs and production levels are exactly as planned. The following data are from Viviana's Foods's first month in business: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the product cost per meal produced under absorption costing and under variable costing. (Round your answers to the nearest cent.) Variable costing Absorption costing Total product cost per meal Requirement 2a. Prepare Viviana's Foods's January income statement using absorption costing. Viviana's Foods Income Statement (Absorption Costing) Month Ended January 31 Operating Income Requirement 2b. Prepare Viviana's Foods's January income statement using variable costing. Viviana's Foods Income Statement (Variable Costing) Month Ended January 31 CXXIS Operating Income…
Belicious Bakery (BB) manufactures variety types of cakes, and currently holds the biggest market share of bakery product in country M. Its manufacturing facility is located at town X. Using a centralized manufacturing system, BB will deliver its products to the retailers around the country M every fortnight. BB has used high-low method in classifying its cost. Given below are the costs associated with BB’s manufacturing activity during the month of February. BB uses machine hour as the cost driver. The highest activity in February consumes 450 machine hour, while the lowest consumes 20% less than the highest activity. Cost Total Cost (RM) Machine depreciation High 36,000 Low 36,000 Raw material…
Coronado Church Furniture manufactures custom pews, altars, and pulpits for churches across the southern United States. Since each order is unique, Coronado uses a job order costing system. During the month of June, Coronado worked on orders for three churches: Faith Church, Grace Church, and Hope Church. Production on the Faith and Grace orders began in May, and the Faith job was completed in June. Production on the Hope order began in June and was incomplete at the end of the month. Coronado applies overhead to each job based on machine hours. Prior to the year, managers had estimated manufacturing overhead at $888,000, along with 24,000 machine hours. Additional cost information related to the three orders is as follows: Faith Grace Hope Beginning balance, June 1 $4,000 $2,600 — Direct materials, June $8,200 $6,200 $3,600 Direct labor, June $13,800 $7,500 $5,500 Manufacturing OH, June ? ? ? Machine hours, June 2,000…
Oberti Guitar Company makes high-quality customized guitars. Oberti uses a job order costing system. Because the guitars are handmade, the company applies overhead based on direct labor hours. At the beginning of the year, the company estimated that total manufacturing overhead costs would be $300,000 and that 20,000 direct labor hours would be worked. At year-end, Anthony, the company's founder and CEO, gives you the following information regarding Oberti's operations. 1. The beginning balances in the inventory accounts were: Raw Materials Inventory $8,000 Work in Process Inventory $26,000 Finished Goods Inventory $32,000 2. During the year, the company purchased raw materials costing $97,000. All purchases were made on account. 3. The production department requisitioned $100,000 of raw materials for use in production. Of those, 70% were direct materials and 30% were indirect materials. 4. The company used 21,000 direct labor hours at a cost of $14 per hour during the year (credit…
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, ages should be $6,500 plus $2.30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Raw materials Fixed Element per Month Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Wages Utilities Rent $ 6,500 $ 2,530 $ 3,500 $ 2,250 $ 740 Answer is complete but not entirely correct. Via Gelato Revenue and Spending Variances For the…
Waterway Guitar Company makes high-quality customized guitars. Waterway uses a job order costing system. Because the guitars are handmade, the company applies overhead based on direct labor hours. At the beginning of the year, the company estimated that total manufacturing overhead costs would be $307,500 and that 20,500 direct labor hours would be worked. At year-end, Daniel, the company’s founder and CEO, gives you the following information regarding Waterway’s operations. 1. The beginning balances in the inventory accounts were: Raw Materials Inventory $7,900 Work in Process Inventory $26,000 Finished Goods Inventory $31,500 2. During the year, the company purchased raw materials costing $102,000. All purchases were made on account. 3. The production department requisitioned $98,000 of raw materials for use in production. Of those, 70% were direct materials and 30% were indirect materials. 4. The company used 21,500 direct labor hours at a cost…