The Ski department reports sales of $600,000 and cost of goods sold of $420,000. Its expenses follow. Service department expenses $ 15,500 Office $ 22,600 Direct expenses Salaries Depreciation 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Req 1 $ 117,000 Rent 49,600 Complete this question by entering your answers in the tabs below. Indirect expenses Req 2 and 3 For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Gross profit Direct expenses Departmental Contribution to Overhead For Year Ended December 31 Total direct expenses Departmental contribution to overhead Should the Ski department be eliminated? Ski Department $ 0 0 0

The Ski department reports sales of $600,000 and cost of goods sold of $420,000. Its expenses follow. Service department expenses $ 15,500 Office $ 22,600 Direct expenses Salaries Depreciation 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Req 1 $ 117,000 Rent 49,600 Complete this question by entering your answers in the tabs below. Indirect expenses Req 2 and 3 For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Gross profit Direct expenses Departmental Contribution to Overhead For Year Ended December 31 Total direct expenses Departmental contribution to overhead Should the Ski department be eliminated? Ski Department $ 0 0 0

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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Sales $1,230,000 Selling and administrative expenses 210,000 Direct materials used 264,000 Direct labor 300,000 Factory overhead * 405,000 *variable overhead is $205,000, fixed overhead is $200,000 Inventories July 1, 2018 July 31, 2018 Direct materials $36,000 $42,000 Work in process 75,000 84,000 Finished goods 69,000 57,000 The conversion cost is a.$960,000 b.$1,179,000 c.$705,000 d.$564,000
2. Burnham Industries incurs the following costs for the month: Direct materials $2,000 Direct labor 3,000 Factory depreciation expense 3,500 Factory utilities expense 750 CEO's salary 4,000 How much is the prime cost? How much is the conversion cost? PLEASE NOTE: All amounts rounded to whole dollar and shown with "$" and commas as needed (i.e. $12,345).
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $25,000 and for Purchasing is $56,200. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Department Sales Purchase Orders Books $ 186,200 546 Magazines 95,000 364 Newspapers 98,800 390 Total $ 380,000 1,300 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information.
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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) $2,030 Labor expense 41,570 Sales 188,000 Research and development (uncontrollable) 310 Depreciation expense 17,000 Net income/(loss) ? Cost of goods sold 118,440 Selling expense 1,260 Total expenses ? Marketing costs (uncontrollable) 790 Administrative expense 700 Income tax expense (21% of pretax income) ? Other expenses 310 B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. Round your percentage answers to one decimal place. Profit margin fill in the blank…
b. P35,000 C. P55,000 d. P80,000 PROBLEMS P4-1 Hansel Corporation provided the following data: 600 No. of employees at the beginning of the month No. of employees at the end of the year No. of employees resigned No. of employees discharged No. of employees replaced 640 40 10 20 Required:Calculate the labor turnover by applying three methods: Separation method a. b. Replacement method с. Flux method P4-2 Hakone Company determined P284,200 payroll for the week consisting of P240,000 earned by 80 direct laborers and P44,200 earned by 20 indirect laborers. The total factory bonuses to be paid at vear-end is estimated at P980,000. All factory workers receive a three-week paid vacation and 10 paid holidays. Required: Prepare the journal entries to: (a) distribute the weekly payroll and to (b) accrue the bonus, vacation, and holiday pay. CHAPTER 4 Accounting for Labor 139 Scanned with Camscanner
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Bonanza has two operating departments (Movies and Video Games) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. Departmental Income Statements Video For Year Ended December 31 Movies Games Combined $600,000 420,000 180,000 $200,000 154,000 46,000 $800,000 574,000 226,000 Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment 70,500 5,000 7,500 50,000 9,000 49,500 21,000 1,000 4,000 4,500 41,000 7,380 3,000 9,000 1,620 Rent Utilities Share of office department 56,250 18,750 75,000 expenses Total expenses Income (loss) 162,630 $ 17,370 54,370 $ (8,370) 217,000 $ 9,000 Req 1. Prepare a departmental contribution to overhead report (see Exhibit 22.12). 2. Should the video games department be eliminated? Explain.
Accounting Revenue $181,232.65 Food Cost $65,240.00 Operating Supplies Expenses $6,828.12 BÓH Salaries $5,820.00 FOH Salaries $ 3,860.50 Overtime Pay $1,690.67 Utilities $980.65 Marketing $ 2,850.00 Employer Taxes $780.32 Travel and Entertainment $ 86.09 Insurance $412.27 Employer Insurance $285.50 Employee Meals $ 330.35 Employee Benefits $795 Landscaping $225 Depreciation, equipment $135.55 equipment leases $70.56 telephone $65.92 1. what is the total labor cost? 2. what is the payroll ratio for FOH? 3. what is the payroll ratio for BOH? 4. what is the labor cost for FOH? 5. what is the labor cost for BOH? 6. the total hour worked in FOH was 650 hrs, what is the labor cost per minute for FOH? 7. the total hour worked in BOH was 450 hrs, what is the labor cost per minute for BOH? 8. what was the facility sustaining cost? 9. during this month 3600 menu items were sold. what was the facility sustaining cost per item sold?
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 17,000 Net income/(loss) ? Cost of goods sold 119,700 Selling expense 1,260 Total expenses ? Marketing costs (uncontrollable) 790 Administrative expense 690 Income tax expense (21% of pretax income) ? Other expenses 330 A. Prepare the income statement to include all costs, but separate out uncontrollable costs using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended December…
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