A multi-step income statement for the month ended July 31, 2018.

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Answer 1

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Chapter 6, Problem 6.7AP

1.

To determine

To prepare: A multi-step income statement for the month ended July 31, 2018.

2.

To determine

To calculate: the inventory turnover ratio for the month of July and to explain the expected ratio to be higher or lower in the December 2018.

3.

To determine

To calculate: the gross profit ratio for the month of July.

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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…

The completed Payroll Register for the February and March biweekly pay periods is provided, assuming benefits went into effect as anticipated. Required: Using the payroll registers, complete the General Journal entries as follows: February 10 Journalize the employee pay. February 10 Journalize the employer payroll tax for the February 10 pay period. Use 5.4 percent SUTA and 0.6 percent FUTA. No employees will exceed the FUTA or SUTA wage base. February 14 Issue the employee pay. February 24 Journalize the employee pay. February 24 Journalize the employer payroll tax for the February 24 pay period. Use 5.4 percent SUTA and 0.6 percent FUTA. No employee will exceed the FUTA or SUTA wage base. February 28 Issue the employee pay. February 28 Issue payment for the payroll liabilities. March 10 Journalize the employee pay. March 10 Journalize the employer payroll tax for the March 10 pay period. Use 5.4 percent SUTA and 0.6 percent FUTA. No employees will exceed the FUTA or SUTA wage base.…

Answer 2

Question

Chapter 6, Problem 6.7AP

1.

To determine

To prepare: A multi-step income statement for the month ended July 31, 2018.

2.

To determine

To calculate: the inventory turnover ratio for the month of July and to explain the expected ratio to be higher or lower in the December 2018.

3.

To determine

To calculate: the gross profit ratio for the month of July.

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Answer 3

Question

Chapter 6, Problem 6.7AP

1.

To determine

To prepare: A multi-step income statement for the month ended July 31, 2018.

2.

To determine

To calculate: the inventory turnover ratio for the month of July and to explain the expected ratio to be higher or lower in the December 2018.

3.

To determine

To calculate: the gross profit ratio for the month of July.

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Answer 4

Question

Chapter 6, Problem 6.7AP

1.

To determine

To prepare: A multi-step income statement for the month ended July 31, 2018.

2.

To determine

To calculate: the inventory turnover ratio for the month of July and to explain the expected ratio to be higher or lower in the December 2018.

3.

To determine

To calculate: the gross profit ratio for the month of July.

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Answer 5

Chapter 6, Problem 6.7AP

1.

To determine

To prepare: A multi-step income statement for the month ended July 31, 2018.

2.

To determine

To calculate: the inventory turnover ratio for the month of July and to explain the expected ratio to be higher or lower in the December 2018.

3.

To determine

To calculate: the gross profit ratio for the month of July.

Answer 6

Chapter 6, Problem 6.7AP

1.

To determine

To prepare: A multi-step income statement for the month ended July 31, 2018.

Answer 7

Chapter 6, Problem 6.7AP

1.

To determine

To prepare: A multi-step income statement for the month ended July 31, 2018.

Answer 8

2.

To determine

To calculate: the inventory turnover ratio for the month of July and to explain the expected ratio to be higher or lower in the December 2018.

Answer 9

2.

To determine

To calculate: the inventory turnover ratio for the month of July and to explain the expected ratio to be higher or lower in the December 2018.

Answer 10

3.

To determine

To calculate: the gross profit ratio for the month of July.

Answer 11

3.

To determine

To calculate: the gross profit ratio for the month of July.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 6 - 1.What is inventory? Where in the financial...Ch. 6 - Prob. 2RQ Ch. 6 - What is the difference among raw materials...Ch. 6 - Prob. 4RQ Ch. 6 - Prob. 5RQ Ch. 6 - What is a multiple-step income statement? What...Ch. 6 - Cheryl believes that companies report cost of...Ch. 6 - What are the three primary cost flow assumptions?...Ch. 6 - 9.Which cost flow assumption generally results in...Ch. 6 - Prob. 10RQ

A multi-step income statement for the month ended July 31, 2018.

Solution Summary: The author explains the multi-step income statement, which reports a sequence of intermediary steps or subtotals such as gross profit, operating income and income which is derived before deducting the taxes.

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To prepare: A multi-step income statement for the month ended July 31, 2018.

To calculate: the inventory turnover ratio for the month of July and to explain the expected ratio to be higher or lower in the December 2018.

To calculate: the gross profit ratio for the month of July.

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