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3 years ago

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

Business

2 answers:

Elza [17]3 years ago

8 0

Answer:

Amount of underapplied or overapplied overhead cost for the year

$97000 - Underapplied

Schedule of cost of goods manufactured for the year

Direct Material 3885000

Direct Labor 60000

Overheads 376000

Total Manufacturing Costs 4321000

Add Opening Inventory WIP 400000

Less Closing Inventory WIP (700000)

Cost of Goods Manufactured 4021000

Explanation:

Amount of underapplied or overapplied overhead cost for the year

Underapplied or Overapplied overhead cost =Actual Overhead - Applied Overhead

$473000-$376000= $ 97000

Schedule of cost of goods manufactured for the year

Direct Materials Calculation 

Opening 200000

Add Purchases 4000000

Available 4200000

Less Closing Material 300000

Materials Consumed 3900000

Less Indirect Materials 15000

Direct Materials Consumed 3885000

Evgen [1.6K]3 years ago

8 0

Answer:

1. The overhead is under applied - $ 105,000

2. Schedule of cost of goods manufactured

Raw materials consumed $ 390,000

Direct Labor $ 60,000

Applied manufacturing overhead $ 368,000

Total manufacturing input $ 818,000

Add: Opening work in process $ 40,000

Less: Closing work in process $ ( 70,000)

Cost of goods manufactured $ 788,000

Explanation:

Calculation of predetermined overhead

Estimated manufacturing overhead $ 376,000

Estimated machine hours 23,500

Predetermined overhead rate $ 16 per machine hour

Calculation of over - under application of overhead

Actual machine hours 23,000

Predetermined overhead rate $ 16 per machine hour

Total Overhead applied 23,000 * $ 16 = $ 368,000

Actual overhead $ 473,000

Underapplication of overhead $ 105,000

Calculation of materials consumed

Raw materials beginning $ 20,000

Purchases $ 400,000

Less: Raw materials ending $ ( 30,000)

Raw materials consumed $ 390,000

Direct Labor $ 60,000

Applied manufacturing overhead $ 368,000

Total manufacturing input $ 818,000

Add: Opening work in process $ 40,000

Less: Closing work in process $ ( 70,000)

Cost of goods manufactured $ 788,000

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The net income reported on the income statement for the current year was $220,000.

sukhopar [10]

Answer:

B) USD 317,000/-

Explanation:

By adding reported values and subtracting payable we will get a derivation like below:

= 220,000+50,000+10,000+30,000-1000+8000

= USD 317,000/-

7 0

3 years ago

Business K exchanged an old asset (FMV $95,000) for a new asset (FMV $95,000). Business K’s tax basis in the old asset was $107,

cestrela7 [59]

Answer:

All requirements solved

Explanation:

A realized loss is the loss that is recognized when assets are sold for a price lower than the original purchase price

1.If Exchange was a taxable transaction:

Realized loss = $95,000 amount realised - $107,000 tax basis = $12,000

Recognized loss = $12,000

Tax basis in new asset = $92,000 cost

2. If the exchange was a non-taxable transaction:

Realized loss = $95,000 amount realised - $107,000 tax basis = $12,000

Recognized loss = $0

Tax basis in new asset = $104,000 substituted basis

3. If exchange was taxable,

Gain recognized on sale of new asset = ( $100,000 amount realized - $95,000 Tax basis)

Gain recognized on the sale of new asset = $7,000

If exchange was non taxable,

loss recognized on sale of new asset = $100,000 amount realized - $107,000 Tax basis

loss recognized on sale of new asset = $7,000

6 0

3 years ago

The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances:

mote1985 [20]

Answer:

Service revenue, $104,000, of which $31,200 was on account and the balance was received in cash.

Dr Cash 72,800

Dr Accounts receivable 31,200

Cr Service revenue 104,000

Collected on accounts receivable, $22,300.

Dr Cash 22,300

Cr Accounts receivable 22,300

Issued shares of common stock in exchange for $8,000 in cash.

Dr Cash 8,000

Cr Common stock 8,000

Paid salaries, $37,750 (of which $6,250 was for salaries payable at the end of the prior year).

Dr Wages expense 31,500

Dr Wages payable 6,250

Cr Cash 37,750

Paid miscellaneous expense for various items, $20,400.

Dr Miscellaneous expenses 20,400

Cr Cash 20,400

Purchased equipment for $10,500 in cash.

Dr Equipment 10,500

Cr Cash 10,500

Paid $2,475 in cash dividends to shareholders.

Dr Dividends 2,475

Cr Cash 2,475

Accrued salaries at year-end amounted to $755.

Dr Wages expense 755

Cr Wages payable 755

Depreciation for the year on the equipment is $1,600.

Dr Depreciation expense 1,600

Cr Accumulated depreciation 1,600

Dr Service revenue 104,000

Cr Income summary 104,000

Dr Income summary 54,255

Cr Wages expense 32,255

Cr Miscellaneous expenses 20,400

Cr Depreciation expense 1,600

Dr Income summary 49,745

Cr Retained earnings 49,745

Dr Retained earnings 2,475

Cr Dividends 2,475

Cash Accounts receivable

debit credit debit credit

33,200 10,500

72,800 31,200

22,300 22,300

8,000 19,400

37,750

20,400

10,500

2,475

65,175

Equipment Wages payable

debit credit debit credit

11,200 6,250

10,500 6,250

1,600 755

20,100 755

Common stock Retained earnings

debit credit debit credit

41,500 7,150

8,000 49,745

49,500 2,475

54,420

Service revenue Wages expense

debit credit debit credit

104,000 31,500

104,000 755

0 0 32,255

0 0

Miscellaneous expense Dividends

debit credit debit credit

20,400 2,475

20,400 2,475

0 0 0 0

Depreciation expense Income summary

debit credit debit credit

1,600 104,000

1,600 54,255

0 0 49,745

0 0

3 and 4) Karlin Company

Trial Balance Sheet

For the year ended December 31, 2021

Debit Credit

Cash $65,175

Accounts receivable $19,400

Equipment $20,100

Wages payable $755

Common stock $49,500

Retained earnings $7,150

Service revenue $104,000

Wages expense $32,255

Miscellaneous expense $20,400

Depreciation expense $1,600

Dividends $2,475

Totals $161,405 $161,405

5.a. Karlin Company

Income Statement

For the year ended December 31, 2021

Service revenue $104,000

Expenses:

Wages expense $32,255
Miscellaneous expense $20,400
Depreciation expense $1,600 ($54,255)

Net income $49,745

5.b. Karlin Company

Balance Sheet

For the year ended December 31, 2021

Assets:

Cash $65,175

Accounts receivable $19,400

Equipment $20,100

Total assets $104,675

Liabilities:

Wages payable $755

Total liabilities $755

Stockholders' equity

Common stock $49,500

Retained earnings $54,420

Total stockholders' equity $103,920

Total liabilities + equity $104,675

6) Karlin Company

post-closing Trial Balance Sheet

For the year ended December 31, 2021

Debit Credit

Cash $65,175

Accounts receivable $19,400

Equipment $20,100

Wages payable $755

Common stock $49,500

Retained earnings $54,420

Totals $104,675 $104,675

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4 years ago

Suppose you buy a put option contract on October gold futures with a strike price of $1200 per ounce. Each contract is for the d

lyudmila [28]

Answer:

Strike price of October gold future = $1,200 per ounce

The exercise price = $1,180

To calculate the amount that will help the investor to decide about the position

Amount added to margin = (Strike price - Future price) * Delivery if each contract

Amount added to margin = ($1,200 - $1,180) * 100

Amount added to margin = $20 * 100

Amount added to margin = $2,000

Therefore, the amount of $2,000 is received. The investor has short position on future contracts to sell 100 ounces of gold in October.

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3 years ago

If there is a shortage of workers in a certain field, the demand will _____ and competition will be high for companies that are

Shkiper50 [21]

Your answer will be B. Decrease, because not enough workers means it can't be produced enough. Hope this helped!

4 0

3 years ago

Read 2 more answers