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2 years ago

Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4

Business

1 answer:

Vikentia [17]2 years ago

8 0

Answer:

Job No 306 351,000 Cost Of Goods Sold

Job No 307 500,000 Finished Goods Inventory

Job No 308 256,500 Work In Process Inventory

Explanation:

We add the March balance and the April balances for each of the jobs to get the desired results.

Marcelino Co

Job No 306

March

Direct Materials 25000

Direct Labor 25000

Applied Overhead 12500

Opening Work In Process 62500

April

Direct Materials 131000

Direct Labor 105000

Applied Overhead (50% of 105,000) 52,500

Total Costs Added In April 288500

Total Costs 351,000

Status on April 30 Finished & Sold

Included in Cost Of Goods Sold

Job No 307

March

Direct Materials 40000

Direct Labor 18000

Applied Overhead 9000

Opening Work In Process 67,000

April

Direct Materials 205000

Direct Labor 152000

Applied Overhead (50% of 152,000) 76,000

Total Costs Added In April 433,000

Total Costs 500,000

Status on April 30 Finished & Unsold

Included in Finished Goods Inventory

Job No 308

March

Direct Materials ------

Direct Labor --------

Applied Overhead -------

Opening Work In Process ------

April

Direct Materials 105000

Direct Labor 101000

Applied Overhead (50% of 101,000) 50,500

Total Costs Added In April 256,500

Total Costs 256,500

Status on April 30 In Process

Included in Work In Process Inventory

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Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discou

Alekssandra [29.7K]

Answer:

$4,455

Explanation:

The computation of total decrease in earnings (pretax) in Morris Dec. 31, 2021, income statement is given below:-

Interest expense upto 31 Dec 2021 = (Total present value of lease payment - Lease payment on July 1, 2021) × 6% × 6 ÷ 12

= ($58,500 - $7,500) × 6% × 6 ÷ 12

= $51,000 × 6% × 6 ÷ 12

= $1,530

Depreciation expense upto 31 Dec 2021 = Fair value of equipment ÷ Useful life × 6 ÷ 12

= $58,500 ÷ 10 × 6 ÷ 12

= $5,850 × 6 ÷ 12

= $2,925

So, the total decrease in earnings (pretax) in Morris Dec. 31, 2021, income statement = Interest expense upto 31 Dec 2021 + Depreciation expense upto 31 Dec 2021

= $1,530 + $2,925

= $4,455

7 0

3 years ago

The management of Kabanuck Corporation is considering dropping product V41B. Data from the company's accounting system appear be

Makovka662 [10]

Answer:

$191,500

Explanation:

If the item is not dropped:

Loss = Sales - Variable expenses - Fixed manufacturing expenses - Fixed selling and administrative expenses

= $923,000 - $405,500 - $337,000 - $244,000

= (63,500) loss

Fixed mfg. expenses remaining:

= Fixed manufacturing expenses - Avoidable Fixed manufacturing expenses

= $337,000 - $207,500

= $129,500

Fixed selling and administrative expenses remaining:

= Fixed selling and administrative expenses - Avoidable Fixed selling and administrative expenses

= $244,000 - $118,500

= $125,500

Loss in expenses remaining if item is dropped :

= Fixed mfg. expenses remaining + Fixed selling and administrative expenses remaining

= $129,500 + $125,500

= ($255,000)

Overall net operating income would decrease by:

= Loss in expenses remaining if item is dropped - Loss in expenses if item is not dropped

= $255,000 - $63,500

= $191,500

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3 years ago

As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The fir

I am Lyosha [343]

Answer:

1.5

Explanation:

Current ratio = current asset/current liabilities

This ratio is used to determine how quickly the current assets can be used to settle the current liabilities as they fall due.

current assets = $120,000

current liabilities = $80,000

The firm's current ratio = $120,000/$80,000

= 1.5

5 0

2 years ago

Mercury Inc. purchased equipment in 2019 at a cost of $400,000. The equipment was expected to produce 700,000 units over the nex

Wittaler [7]

Answer:

See explanation section

Explanation:

We know,

Annual depreciation rate under Units-of-production = Depreciable amount/Overall (expected) production

Given,

Purchase value = $400,000

Residual value = $50,000

Expected production = 700,000 units

Depreciable Amount = $(400,000 - 50,000) = $350,000

Annual depreciation rate = $350,000/700,000

Depreciation rate = $0.50

Thrrefore, Accumulated depreciation from 2019 to 2021 = (100,000 + 160,000 + 80,000)*$0.50

= $170,000

We know, Book value of asset = Cost price - Accumulated depreciation

Book value = $400,000 - $170,000 = $230,000

Again, Loss on sale of equipment = Book value - Sales price

Loss on sale of equipment = $230,000 - $210,000

Loss on sale of equipment = $20,000

The journal entry to record the sale =

Debit Cash $210,000

Debit Accumulated Depreciation $170,000

Debit Loss on sale $20,000

Credit Equipment $400,000

7 0

3 years ago

Read 2 more answers

Deborah Company's account balances at December 31 for Accounts Receivable and Allowance for Doubtful Accounts were $2,100,000 an

mart [117]

Answer:

The amount of the adjusting entry for bad debts at December 31 is C. $91,000

Explanation:

Adjustment entry is made on changes on the amount of provision for doubtful debts.

Increase in amount of provision for doubtful debts increases the expenses in income statement.

Decreases in amount of provision for doubtful debts decreases the expenses in income statement.

Allowance for Doubtful Accounts Balance $35,000 (cr)

Allowance during th year $126,000

Increase in Allowance $ 91,000

$ 91, 000 increase in allowance for doubtful debts increases the expenses in Income Statement

5 0

3 years ago