Describe whether sales tax should recorded at the time of slae or at the time of payment.

Question

Maverick Manufacturing uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month. In October, the company completed job Y72K, which consisted of 30,000 units of one of the company's standard products. No other jobs were in process during the month. The total manufacturing cost for job Y72K, according to its job cost sheet, was $1,500,000. During the month, the actual manufacturing overhead cost incurred was $345,000, while the manufacturing overhead applied was $335,500. Also, 20,000 completed units from job Y72K were sold. No other products were sold during the month. The cost of goods sold that would appear on the income statement for October, after adjustment for any underapplied or overapplied overhead, is closest to: a. $1,009,500 b. $1,500,000 c. $980,700 d. $992,700

Answer 1

Question

Chapter 6, Problem 16E

(a)

To determine

Describe whether sales tax should recorded at the time of slae or at the time of payment.

(b)

To determine

Describe the amount that is recorded as sales.

(c)

To determine

Calculate the amount that is debited to accounts receivable.

(d)

To determine

Describe the the title of the account to which $2,880 is credited.

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Maverick Manufacturing uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month. In October, the company completed job Y72K, which consisted of 30,000 units of one of the company's standard products. No other jobs were in process during the month. The total manufacturing cost for job Y72K, according to its job cost sheet, was $1,500,000. During the month, the actual manufacturing overhead cost incurred was $345,000, while the manufacturing overhead applied was $335,500. Also, 20,000 completed units from job Y72K were sold. No other products were sold during the month. The cost of goods sold that would appear on the income statement for October, after adjustment for any underapplied or overapplied overhead, is closest to: a. $1,009,500 b. $1,500,000 c. $980,700 d. $992,700

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Answer 2

Question

Chapter 6, Problem 16E

(a)

To determine

Describe whether sales tax should recorded at the time of slae or at the time of payment.

(b)

To determine

Describe the amount that is recorded as sales.

(c)

To determine

Calculate the amount that is debited to accounts receivable.

(d)

To determine

Describe the the title of the account to which $2,880 is credited.

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Answer 3

Question

Chapter 6, Problem 16E

(a)

To determine

Describe whether sales tax should recorded at the time of slae or at the time of payment.

(b)

To determine

Describe the amount that is recorded as sales.

(c)

To determine

Calculate the amount that is debited to accounts receivable.

(d)

To determine

Describe the the title of the account to which $2,880 is credited.

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Answer 4

Question

Chapter 6, Problem 16E

(a)

To determine

Describe whether sales tax should recorded at the time of slae or at the time of payment.

(b)

To determine

Describe the amount that is recorded as sales.

(c)

To determine

Calculate the amount that is debited to accounts receivable.

(d)

To determine

Describe the the title of the account to which $2,880 is credited.

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Answer 5

Chapter 6, Problem 16E

(a)

To determine

Describe whether sales tax should recorded at the time of slae or at the time of payment.

(b)

To determine

Describe the amount that is recorded as sales.

(c)

To determine

Calculate the amount that is debited to accounts receivable.

(d)

To determine

Describe the the title of the account to which $2,880 is credited.

Answer 6

Chapter 6, Problem 16E

(a)

To determine

Describe whether sales tax should recorded at the time of slae or at the time of payment.

Answer 7

Chapter 6, Problem 16E

(a)

To determine

Describe whether sales tax should recorded at the time of slae or at the time of payment.

Answer 8

(b)

To determine

Describe the amount that is recorded as sales.

Answer 9

(b)

To determine

Describe the amount that is recorded as sales.

Answer 10

(c)

To determine

Calculate the amount that is debited to accounts receivable.

Answer 11

(c)

To determine

Calculate the amount that is debited to accounts receivable.

Answer 12

(d)

To determine

Describe the the title of the account to which $2,880 is credited.

Answer 13

(d)

To determine

Describe the the title of the account to which $2,880 is credited.

Answer 14

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Answer 25

Ch. 6 - Prob. 1DQ Ch. 6 - Can a business earn a gross profit but incur a net...Ch. 6 - The credit period during which the buyer of...Ch. 6 - What is the meaning of (a) 1/15, n/60; (b) n/30;...Ch. 6 - Prob. 5DQ Ch. 6 - Prob. 6DQ Ch. 6 - Prob. 7DQ Ch. 6 - Name four accounts that would normally appear in...Ch. 6 - Prob. 9DQ Ch. 6 - Assume that Audio Outfitter Inc. in Discussion...

Describe whether sales tax should recorded at the time of slae or at the time of payment.

Solution Summary: The author explains that sales tax should be recorded at the time of slae or when payment is made. The amount of 36,000 is recorded as sales.

Describe whether sales tax should recorded at the time of slae or at the time of payment.

Describe the amount that is recorded as sales.

Calculate the amount that is debited to accounts receivable.

Describe the the title of the account to which $2,880 is credited.

Chapter 6 Solutions