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devlian [24]
3 years ago
14

The annual budgeted conversion costs for a lean cell are $180,000 for 1,000 production hours. Each unit produced by the cell req

uires 20 minutes of cell process time. During the month, 600 units are manufactured in the cell. The estimated materials costs are $30 per unit. (Do not round per unit cost. If required, round your answers to the nearest dollar.)
Required:
1. Journalize the following entries for the month:
a. Materials are purchased to produce 500 units.
b. Conversion costs are applied to 600 units of production.
c. The cell completes 450 units, which are placed into finished goods.
If an amount box does not require an entry, leave it blank.
Business
1 answer:
iren2701 [21]3 years ago
6 0

Answer: Please see in explanation column

Explanation:

Budgeted Conversion Cost   $ 180,000      

Total Production hours = 1,000 hours      

Conversion cost per production hour = 180,000/1,000  = $ 180 per hour  

Production time per unit produce = 20 minutes    

Conversion cost per unit -- first mins change to hrs

60min = 1 hour

20 min= 20/60=0.33hr

$ 180 x 0.333333 = $ 59.999per unit  

Material cost per unit = $ 30 per unit      

Total cost per unit production =

Material cost per unit+ conversion cost per unit = 30+ 59.999= $ 89.999per unit

a)Material Required per unit = $30 per unit      

Material purchase for 500 units =30 x 500 = $15,000    

b)Conversion cost per unit produce = $ 59.999 per unit    

number of units for conversion= 600

Conversion Cost applied for 600 units =( 600 x 59.999 = $35,999.4  rounded to $36,000

Total cost of goods complete per unit = $ 89.999 per unit    

Number of units completed = 450 units

Total Cost of Goods completed =  450  x 89.999= $ 40,499.55    =$40,500

A) JOURNAL ENTRY For purchase of raw material for 500 units at  $30        

Accounts title                         Debit                   Credit

Raw and In process Inventory   15,000    

Accounts Payable                                                             15,000  

B)JOURNAL ENTRY For applied conversion cost to in process inventory for 600 units at $59.999                                

Raw and in process inventory            $36,000

Conversion Cost                                                            $36,000  

C)JOURNAL ENTRY For completing 450 units at a total cost of $89.999

Finished Goods Inventory        $ 40,500   

Raw and in Process Inventory                              $ 40,500    

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Answer:

IRR for A= 35.33%

IRR for B = 31.88%

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated using a finacial calculator :

IRR for cash flow A

Cash flow in year 0 = −$ 68,000

Cash flow in year 1 = $44,000

Cash flow in year 2 = $38,000

Cash flow in year 3 = $25,000

Cash flow in year 4 = $15,600

IRR = 35.33%

IRR for cash flow A

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Cash flow in year 2 =  34,200

Cash flow in year 3 = $40,000

Cash flow in year 4 = $24,200

IRR = 31.88%

To find the IRR using a financial calculator:

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3 years ago
This year Randy paid $29,050 of interest on his residence. (Randy borrowed $464,000 to buy his residence, and it is currently wo
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Answer:

the last part of the question is missing, so I looked for it:

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Answer:

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Dr short term investments 8,600

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b. Lent $6,300 to a supplier who signed a two-year note.

Dr notes receivable 6,300

    Cr cash 6,300

c. Purchased equipment that cost $24,000; paid $4,900 cash and signed a one-year note for the balance.

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d. Hired a new president at the end of the year.

no entry

e. The contract was for $86,000 per year plus options to purchase company stock at a set price based on company performance.

no entry

f. Issued an additional 2,300 shares of $0.50 par value common stock for $19,000 cash.

Dr cash 19,000

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    Cr additional paid in capital 18,885

g. Borrowed $19,000 cash from a local bank, payable in three months.

Dr cash 19,000

    Cr notes payable 19,000

h. Purchased a patent (an intangible asset) for $1,100 cash.

Dr patent 1,100

    Cr cash 1,100

i. Built an addition to the factory for $29,000; paid $8,700 in cash and signed a three-year note for the balance.

Dr building 29,000

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    Cr notes payable 20,300

j. Returned defective equipment to the manufacturer, receiving a cash refund of $2,400.

Dr cash 2,400

    Cr equipment 2,400

<h2>Cougar Plastics Company</h2><h2>Balance Sheet</h2><h2>For the year ended December 31, 202x</h2><h2>Assets</h2>

<u>Current assets:</u>

Cash $33,800

Accounts receivable $4,600

Inventory $27,000

Investments (short-term) $10,700

Total current assets                               $76,100

<u>Long term investments:</u>

Notes receivable $9,000

Total long term investments                  $9,000

<u>Property, plant and equipment:</u>

Equipment $78,600

Factory building $120,000

Total P, P & E                                      $198,600

<u>Intangible assets:</u>

Intangibles $4,500

Patent $1,100

Total intangible assets                    <u>     $5,600</u>

Total assets                                                                             $289,300

<h2>Liabilities and stockholders' equity</h2>

<u>Current liabilities:</u>

Accounts payable $19,000

Accrued liabilities payable $3,100

Notes payable (short-term) $43,300

Total current liabilities                       $65,400

<u>Long term liabilities:</u>

Notes payable $61,300

Total long term liabilities                   $61,300

<u>Stockholders' equity:</u>

Common stock $10,815

Additional paid-in capital $115,185

Retained earnings $36,600

Total stockholders' equity              <u>$162,600</u>

Total liabilities + stockholder's equity                                     $289,300

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