The following represents the financial information for Plaza Plastics for May and June Sales revenue Costs Scrap Process inspection Quality training Product testing equipment Field testing Warranty repairs Rework May $ 783,000 $ 2,060 2,940 23,840 5,240 8,480 3,440 19,840 June $ 576,000 $ 1,770 1,820 11,780 4,400 6,380 3,140 16,730
Q: Which of the following represents two management functions? Regulating and directing O Controlling…
A: Management functions are a set of activities and processes that are essential for effective…
Q: costing, and has three unique phases for their products (Phase A, B, and C). At the end of the…
A: Equivalent cost per unit= Total amount of cost incurred/ number of equivalent units.
Q: ending Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be…
A: A direct material purchase budget is used to estimate the units that should be purchased for…
Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Exercise 2: Assume the following about a company: Beginning shareholders' equity $110 million
A: Net income is a company's profit or loss from its normal business operations, whereas OCI comprises…
Q: Betty and John Martinez own 140 shares of McDonald's common stock. McDonald's annual dividend is…
A: An annual dividend is a payment paid to shareholders on an annual basis by a corporation or…
Q: (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted…
A: RECOURSE FACTORING IS THE MOST COMMON AND MEANS THAT FACTOR CAN DEMAND MONEY BACK FROM THE COMPANY…
Q: Oriole Corporation purchased a special tractor on December 31, 2025. The purchase agreement…
A: The question is based on the concept of financial accounting.The tractor should be recorded at a…
Q: The following data are for Guava Company's retiree health care plan for the current calendar year.…
A: Golden Rule of Journal Entry :—Debit the Receiver, Credit the Giver.Debit what Comes in, Credit what…
Q: Big Blue University has a fiscal year that ends on June 30. The 2022 summer session of the…
A: Revenue recognition is a fundamental accounting concept that outlines when and how a company or…
Q: According to the activity-based costing system, the product margin for product W26B is: (Round your…
A: ACTIVITY BASED COSTINGActivity Based Costing is a powerful tool for measuring…
Q: With regard to the measurement of a convertible bond issue, which of the following statements is…
A: Bond is a financial instrument which is issued to raise the funds. It is treated as a liability by…
Q: Clothing returned $800 to Williams Fashion for S Clothing paid the balance due, taking advantage
A: In the Books of William Fashion Date Account Titles Debit Credit 01-OctAccounts Receivable $…
Q: Question 17 Job 400 Job 401 Job 402 Direct Materials $200 250 500 Direct Labour Cost $800 200 600…
A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…
Q: When setting up an employee in payroll, where can you enter the information that the employee will…
A: The pay schedule window typically deals with the timing and frequency of payments, such as weekly,…
Q: A company uses process costing. The following information pertains to the month of September: Cost…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production represents the production of a process in terms…
Q: Variable Costing Income Statement The following data were adapted from a recent income statement of…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Dr Erica chan MD owns EC health clinic she prepares annual financial statements and has a December…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Saddie & Co.'s return on assets (ROA) for the current year was 6.23%. Which of the following is true…
A: Return on assets is the ratio between income and average assets. It is calculated by dividing…
Q: Yellow Corporation,
A: Examples of section 1231 properties include buildings, machinery, land, timber, and other…
Q: Assume the following information for a company that produced 10,000 units during its first year of…
A: Cost is classified into an absorption costing and variable costing system.As per the absorption…
Q: Support Departments General Factory Receiving Assembly Finishing merhead $400,000 $170,000 $45,000…
A: Lets understand the basics.Reciprocal method of allocation: Reciprocal method of allocation…
Q: Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50…
A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…
Q: Jordan Cameras, Incorporated manufactures two models of cameras. Model ZM has a zoom lens; Model DS…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The total…
Q: The following table tracks the main components of working capital over the life of a four-year…
A: The question is based on the concept of Financial Accounting.Net working capital is the difference…
Q: On a worksheet, the income statement debit column totals$11,000and the credit column…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent…
A: Variable costs are those costs which changes with change in sales activity level. Fixed costs do not…
Q: Required information The Foundational 15 (Algo) [LO10-1, LO10-2] [The following information applies…
A: Cost-volume-profit (CVP) analysis is a financial management method used to assess the link between…
Q: s: HR and IT. of each of the departments are below. HR time is measure asured by claim tickets.
A: Direct method of allocation allocates cost of the support departments to the operating department in…
Q: Grouper Corp. uses a periodic inventory system and reports the following for the month of June.…
A: Inventory is a part of the balance sheet and it should accurately present the value of a company's…
Q: Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's…
A: The revenue and spending variance is the difference between the actual and flexible budget data. The…
Q: Use the following information to calculate cash paid for wages and salaries: Salaries expense…
A: Salaries and wages are the expenses incurred by the organization for employees hired by it. This is…
Q: Natick Industries leased high-tech instruments from Framingham Leasing on January 1, 2024. Natick…
A: A journal is a complete record of all business dealings. Accounts are reconciled using the…
Q: E6-29 (Static) (Supplement 6B) Recording Purchases and Sales Using Perpetual and Periodic Inventory…
A: Perpetual Inventory System –Under the Perpetual inventory system in every sales transaction cost of…
Q: The petty cash fund at Brookshire Company has a designated balance of $250. The fund currently holds…
A: Petty cash funds are the funds which are created for small day to day expenses. The main cashier…
Q: The Prancing Pony utilizes a job-order costing system for accumulating their product costs. They had…
A: The cost of finished goods include the cost of job that is finished but remains unsold at the end of…
Q: Pina, Inc. began work on a $6,759,000 contract in 2020 to construct an office building. During 2020,…
A: Contract costing is a specialized accounting approach used by organizations to track and manage the…
Q: es Below are the account balances for Cowboy Law Firm at the end of December. Balances $ 5,400 2,200…
A: Income statement is a financial statement that shows the profitability, total revenue and total…
Q: Required information [The following information applies to the questions displayed below.] The…
A: The cost of goods sold includes the cost of goods that are sold during the period. The cost of goods…
Q: Presented below is information related to equipment owned by Oriole Company at December 31, 2025.…
A: A journal entry is a written record or account of an individual's personal thoughts, experiences,…
Q: Kelso Manufacturing allocates manufacturing overhead using a single predetermined rate based on a…
A: The overhead allocation is a method of allocating indirect costs to the goods produced. It can be…
Q: Exercise 15-7 Crawford Corporation incurred the following transactions. 1. Purchased raw materials…
A: The journal entries are prepared to record the transactions on regular basis. The direct costs are…
Q: Complete the following table by filling in missing amounts. Note: Use 360 days a year. Principal of…
A: Lets understand the basics.Interest is an item earned on the investment made. It is a return…
Q: The comparative consolidated income statements of a parent and its 75%-owned subsidiary were…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: At the beginning of 2021, Angel Corporation began offering a 1-year warranty on its products. The…
A: The warranty expense is the amount of warranty costs to be incurred for repairs and replacement…
Q: 1. November sales-price variance 2. November sales-volume variance
A: The sales volume variance is used for analysing the sales performance of the company.It is…
Q: Abbington Inc. issues $385,000 of 9% bonds that pay interest semiannually and mature in 10 years.…
A: Time value of money:— According to this concept, the value of money in the present day is greater…
Q: Square feet Overhead $80,000 $314,000 3,000 Machine hours Support Departments General Power Factory…
A: In accounting and cost accounting, the term "overheads" refers to a cost allocation technique that…
Q: Use the following information for the Quick Studies below. (Algo) [The following information applies…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…
Step by step
Solved in 3 steps
- A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950Question 1. Trial balanceLand and premises 2000000Furniture 120000Inventory (01/04/19) 80000Import on duty 4000Wages of contract workers 46000Salaries 64000Carriage for goods purchased 5200Carriage for goods sold 12400Discounts 24900 25080Purchases and sales 705200 237252200 Rent 11200 13000Commission 15600 17400Bills receivable 1080012% investment (1/10/19) 136000Donation to national fund 1260010% bank loan 112000Factory rent 64000Receivables and payables 920000 240000eBank 728000Bad debts 66000 Provision for doubtful debts 20000Rates and taxes 31200BrokerageCapitalQueen corona 500000Queen covid 500000Current accountQueen corona 20000Queen covid 128000 Additional informationDue to the economic recession at the moment, the partners estimated that more of their receivables may not be able to settle their debts, hence, they wrote off additional debts of GHc 15000 and agreed to maintain provisions for doubtful debts at 5%.They agreed to provide for discount on receivables at 5%.All…1. The following information was reported for Gray Enterprises on December 31, 2020.Manufacturing Overhead Debit Credit 3,410 51,520 15,030 37,090 Double line4,010 Double line A. What is the actual manufacturing overhead? B. What is the allocated manufacturing overhead? C. Is manufacturing overhead underallocated or overallocated? D. Prepare the adjusting entry.Journal Date Description Debit Credit Dec. 31, 20 Dec. 31, 20 2. The following information was reported for Gray Enterprises on December 31, 2021.Manufacturing Overhead Debit Credit 2,020 56,340 15,540 31,920 Double line Double line6,860 A. What is the actual manufacturing overhead? B. What is the allocated manufacturing overhead? C. Is manufacturing overhead underallocated or overallocated? D. Prepare the adjusting entry.Journal Date Description Debit Credit Dec. 31, 20 Dec. 31, 20
- Problem 10-1 (IAA) Amiable Company provided the following data at year-end: Items counted in the bodega Items included in the count specifically segregated per sales contract Items in receiving department, returned by customer, in good condition Items ordered and in the receiving department, 4,000,000 100,000 50,000 invoice not received Items ordered, invoice received but goods not received. Freight is paid by seller. Items shipped today, invoice mailed, FOB shipping point Items shipped today, invoice mailed, FOB destination Items currently being used for window display Items on counter for sale 400,000 300,000 250,000 150,000 200,000 800,000 Items in receiving department, refused by us because of damage 180,000 Items included in count, damaged and unsalable Items in the shipping department 50,000 250,000 Required: Compute the correct amount of inventory.Problem 15-8 (IAA) to a 5% cash discount which was taken. were price of at a cost of P100,000. of the transactions? a. 4,900,000 b. 5,000,000 c. 5,100,000 d. 5,200,000 Problem 15-9 (IAA) Taiwan Company fabricated equipment for office use durine the current year. The following data were taken from the accounting records: Materials Direct labor Finished goods Office equipment 1,000,000 600,000 1,500,000 500,000 Factory overhead amounted to P1,200,000. Normal production of finished goods is 50,000 units. Due to the fabrication of the office equipment, finished goods produced totaled 35,000 units only in the current year. The office equipment is to be charged with the overhead which would have been apportioned to the 15,000 units which were not produced. apportionment of factory overhead? a. 1,100,000 b. 1,400,000 c. 1,460,000 d. 2,300,000 Acquired a at an invoiceCustomers balance December 31, 2023 om customers e balance, March 31, 2024: cted in 2nd Ot 2024 Data table Total sales Budgeted purchases of direct matenal Budgeted direct labor cost Budgeted manufacturing overhead costs Variable manufacturing overhead Depreciation Insurance and property taxes Budgeted selling and administrative expenses Salaries expense Rent expense Insurance experese Depreciation experie Supples expense Print Done 208.000 40,900 37,500 1,100 1.200 6,700 4,000 1,000 1,400 6.240
- Items counted in the bodega Amiable Company provided the following data at year-end: PROBLEMS Problem 10-1 (IAA) Amiable Company provided the following data at year-end: 4,000,000 trems included in the count specifically segregated per sales contract Items in receiving department, returned by customer, in good condition Items ordered and in the receiving department, invoice not received Items ordered, invoice received but goods not received. Freight is paid by seller. Items shipped today, invoice mailed, FOB shipping point Items shipped today, invoice mailed, FOB destination Items currently being used for window display Items on counter for sale Items in receiving department, refused by us because of damage Items included in count, damaged and unsalable Items in the shipping department 100,000 50,000 400,000 300,000 250,000 150,000 200,000 800,000 180,000 50,000 250,000 Required: Compute the correct amount of inventory.Cost of Goods Manufactured; Income Statement The following data pertain to BaborCompany for the fiscal year ended December 31:[LO 3-4]Prior December 31 Current December 31Purchases of materials $165,000Direct labor 114,000Indirect labor 45,000Factory insurance 8,000Depreciation—factory 33,000Repairs and maintenance—factory 11,000Marketing expenses 144,000General and administrative expenses 86,000Materials Inventory $23,000 55,000Work-in-Process Inventory 13,000 16,000Finished Goods Inventory 17,000 24,000Sales in the current year were $625,000.Required Prepare a schedule of cost of goods manufactured and an income statement for the current yearfor Babor Company similar to those in Exhibit 3.15A.Activity-Based Costing for a Service Company Five-Stars Insurance Company carries three major lines of insurance: auto, workers' compensation, and homeowners. The company has prepared the following report: Five-Stars Insurance Company Product Profitability Report For the Year Ended December 31 Premium revenue Estimated claims Underwriting income Underwriting income as a percent of premium revenue Workers' Auto Compensation Homeowners $5,800,000 $6,250,000 $8,200,000 (4,060,000) (4,375,000) (5,740,000) $1,740,000 $1,875,000 $2,460,000 30% 30% 30% Management is concerned that the administrative expenses may make some of the insurance lines unprofitable. However, the administrative expenses have not been allocated to the insurance lines. The controller has suggested that the administrative expenses could be assigned to the insurance lines using activity-based costing. The administrative expenses are comprised of five activities. The activities and their rates are as follows: Activity New…
- Allocating Transaction Price to Performance Obligations and Recording Sales Software Supplier Inc. sells to a customer a perpetual software license and post-contract customer support for a 12-month period, commencing at the time that the software is activated. Software Supplier Inc. charges $360 upfront when the software is purchased and $24 a month for 12 months, due at the end of the month. Software Supplier Inc. sells the software separately for $480 while the standalone selling price of the post-contract customer support is $240. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). a. How should the transaction price be allocated among the performance obligation(s)? Performance Obligations Software Customer support Transaction Price as Stated Standalone Selling Price…Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,400 Training of machine operators 26,300 Processing returned products 15,700 Scrap processing (disposal) 24,100 Rework 7,500 Preventative maintenance 28,800 Product design 44,900 Warranty work 9,400 Finished goods inspection 22,300 From the provided schedule of activity costs, determine the non-value-added costs. a.$114,500 b.$56,700 c.$229,400 d.$47,300Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $51,100 Training of machine operators 26,500 Processing returned products 19,300 Scrap processing (disposal) 25,900 Rework 6,500 Preventative maintenance 29,500 Product design 45,700 Warranty work 7,500 Finished goods inspection 23,200 From the provided schedule of activity costs, determine the appraisal costs. a.$176,000 b.$74,300 c.$51,100 d.$119,500