Chapter 1, Problem 5DQ

Summit Gear Co. estimates its manufacturing overhead to be $620,000 and its direct labor costs to be $1,000,000 for year 1. The first three jobs that Summit Gear worked on had actual direct labor costs of $31,000 for Job 401, $42,000 for Job 402, and $53,000 for Job 403. For the year, actual manufacturing overhead was $600,000 and total direct labor cost was $970,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates. How much overhead was assigned to each of the three jobs, 401, 402, and 403?

What amount of gain does he have to report on this sale?

Capwell Enterprises acquired a patent on March 15, 2023. Capwell paid cash of $58,000 to the seller. Legal fees of $3,200 were paid related to the acquisition. What amount should be debited to the patent account?

Jackman Corporation sells its product for $25 per unit. Next year, fixed expenses are expected to be $385,000 and variable expenses are expected to be $13 per unit. How many units must the company sell to generate a net operating income of $110,000?

I need help with this general accounting question using the proper accounting approach.

Pedro owns securities with a tax basis of $8,300. He gives them to Rivera when they are worth only $6,500. Rivera held these securities until they were worth$9,800 and sold them. What amount of gain does he have to report on this sale? a) $1,500 b)$3,300 c) $850 d) $2,400

How much of the packing cost pool should be assigned to bath mats ?

Can you explain the correct methodology to solve this general accounting problem?

If Salaries and Wages Expense is $536,800 during the year and the beginning and ending balances of Salaries and Wages Payable are $32,400 and $28,900, respectively, the cash paid to employee’s is__.