Recording process: The recording process is the process of analyzing each transaction, then journalizing it, and at last posting it into a correct ledger account. Journal: Journal is the book of original entry. Journal consists of the day to day financial transactions in a chronological order. The journal has two aspects; they are debit aspect and the credit aspect. Ledger: Ledger is the book of principal account. In the ledger, all the accounts are maintained properly. Each ledger account provides an account balance. The ledger account also provides the information to prepare the financial statements. To Explain: the basic steps in the recording process. Solution: There are three steps involved in the process of recording the transaction; which are as follows: First, to identify, and analyze each transaction. Next, recording the transactions in general journal. Finally, posting the journal into a correct ledger account.

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Chapter 3, Problem 15Q

To determine

Recording process:

The recording process is the process of analyzing each transaction, then journalizing it, and at last posting it into a correct ledger account.

Journal:

Journal is the book of original entry. Journal consists of the day to day financial transactions in a chronological order. The journal has two aspects; they are debit aspect and the credit aspect.

Ledger:

Ledger is the book of principal account. In the ledger, all the accounts are maintained properly. Each ledger account provides an account balance. The ledger account also provides the information to prepare the financial statements.

To Explain: the basic steps in the recording process.

Solution: There are three steps involved in the process of recording the transaction; which are as follows:

First, to identify, and analyze each transaction.

Next, recording the transactions in general journal.

Finally, posting the journal into a correct ledger account.

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Coronado Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000+10,200)]. Estimated annual manufacturing overhead is $1,566,090. Thus, the predetermined overhead rate is $16.26 or ($1,566,090 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…

Coronado Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000+ 10,200)]. Estimated annual manufacturing overhead is $1,566,090. Thus, the predetermined overhead rate is $16.26 or ($1,566,090 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…