Chapter 1, Problem 28DQ

Oakridge Manufacturing applies overhead to jobs using a predetermined rate of 125% of direct labor cost. At year-end, the company had actual overhead costs of $487,500, while applied overhead totaled $512,500. The company's unadjusted cost of goods sold was $1,250,000. If the company closes any over- or underapplied overhead to cost of goods sold, what is the adjusted cost of goods sold? Answer this

Upon completing an aging analysis of accounts receivable, the accountant for Riverside Manufacturing prepared an aging of accounts receivable and estimated that $9,300 of the $142,500 accounts receivable balance would be uncollectible. The allowance for doubtful accounts had a $850 credit balance at year-end prior to adjustment. How much is the bad debt expense? a. $8,450 b. $6,580 c. $7,820 d. $7,200

During the current year, August Corporation began operations with $150,000 cash contributed by shareholders. The company purchased equipment for $80,000 cash and inventory for $45,000 on account. By year-end, they had collected $120,000 in service revenue, paid $32,000 for operating expenses, and made payments of $38,000 to suppliers. If the ending inventory balance was $12,000, what is the total stockholders' equity at year-end? Help