Accrual Accounting Accrual accounting refers to the accounting system where revenues and expenses are recognized and recorded as and when it is earned or expenses irrespective of the exchange of cash. Accrual accounting presents a true and fair view of the state of affairs of the business than the cash basis of accounting. Accrual basis of accounting affirms the time period concept, revenue recognition concept, and matching principle of accounting as required by Generally Accepted Accounting Principles (GAAP). Revenue Recognition Principle: The revenue recognition principle refers to the timing of the revenue recognition and the amount of the revenue to be recorded in the specified time. Matching Principle: Matching principle refers to the recording of expenses incurred to match against, and earn the revenues during the particular accounting period. To Indicate: The given revenue and expense to be categorized as cash basis accounting or accrual basis accounting in a tabular format.

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Miguel Manufacturing Company uses a predetermined manufacturing overhead rate based on direct labor hours. At the beginning of 2023, they estimated total manufacturing overhead costs at $2,352,000, and they estimated total direct labor hours at 7,000. The administration and selling overheads are to be absorbed in each job cost at 15% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # 222. Job stats are as follows: Direct materials cost Direct labour cost $173,250 $240,000 500 hours Direct labour hours Special Design Cost Distribution quote from haulage company Units of product produced $8,750 $21,700 400 cartons a) Compute Miguel's Manufacturing Company predetermined manufacturing overhead rate for 2023. b) How much manufacturing overhead was allocated to Job #222? c) Calculate the total cost & quotation price of Job #222, given that a margin of 25% is applied. d) How much was the…

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Chapter 3, Problem 3.19E

1.

To determine

Accrual Accounting

Accrual accounting refers to the accounting system where revenues and expenses are recognized and recorded as and when it is earned or expenses irrespective of the exchange of cash. Accrual accounting presents a true and fair view of the state of affairs of the business than the cash basis of accounting. Accrual basis of accounting affirms the time period concept, revenue recognition concept, and matching principle of accounting as required by Generally Accepted Accounting Principles (GAAP).

Revenue Recognition Principle: The revenue recognition principle refers to the timing of the revenue recognition and the amount of the revenue to be recorded in the specified time.

Matching Principle: Matching principle refers to the recording of expenses incurred to match against, and earn the revenues during the particular accounting period.

To Indicate: The given revenue and expense to be categorized as cash basis accounting or accrual basis accounting in a tabular format.

2.

To determine

To Calculate: The net income or net loss for Company CC under cash basis and accrual basis of accounting for the month of May.

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Please help me with the last entry. The dropdown options are the revenue accounts i can use