Intermediate Accounting
Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
Question
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Chapter 8.A, Problem 1E

a.

To determine

Prepare the journal entry to record sales for year 2016.

Given information:

Shipped textbooks amounted to $700,000.

Estimated returns are 35%.

Fee charged on the amount of returns is 10%.

b.

To determine

Prepare the journal entry for recording the estimated sales return.

c.

To determine

Prepare the journal entry for recording total sales return.

d.

To determine

Prepare the journal entry for all the above three parts assuming that the company is unable to reliably estimate the amount of sales return.

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Alpha Corporation applies overhead costs to jobs on the basis of direct labor costs. Job O, which was started and completed during the current period, shows charges of $6,850 for direct materials, $10,300 for direct labor, and $6,710 for overhead on its job cost sheet. Job O, which is still in process at year-end, shows charges of $3,500 for direct materials and $5,800 for direct labor. a. Should any overhead cost be applied to Job O at year-end? b. How much overhead cost should be applied to Job O? Correct Answer
Factory overhead was budgeted at 140000?
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