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Westkost [7]
3 years ago
5

Wright maintains an ending inventory for each month in the amount of one and one-half times the expected sales in the following

month. The ending inventory for February (March’s beginning inventory) reflects this policy. Materials cost $5 per unit and are paid for in the month after production. Labor cost is $9 per unit and is paid for in the month incurred. Fixed overhead is $13,000 per month. Dividends of $20,200 are to be paid in May. The firm produced 7,000 units in February.

Business
1 answer:
Harlamova29_29 [7]3 years ago
5 0

<u>Explanation:</u>

In the above problem the cash payments of wright corporation is given. From which the production schedule and summary of payments for the month of March, April and May are calculated.

The inventory of the given month is taken as 1.5 times the projected sales for the next month.  Material cost and labor cost is given per unit cost on the projected sale for last month.

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Jay is an 21 year old college senior. He reads on a financial blog that interest rates are being lowered by the Federal Reserve.
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For each activity, select the impact on the accounting equation. After doing all transactions, ensure that the accounting equati
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Answer:

Impact of Transactions on the Accounting Equation:

Transaction                       Assets = Liabilities + Stockholders' Equity

1.                                        15,000 =   0                       15,000

2.                                        9,000 =   9,000                 0

3.                                         1,200 =    1,200                 0

4.                                        2,400 =   2,400                 0

5.                        -12,000+12,000 =  0                         0

6.                                        3,000 =  0                         3,000

7.                                       -4,000 =  -4,000                 0

8.                                      -2,400 =  -2,400                  0

9.                                              0 =   -1,200                  1,200

10.                                    -1,000 =    0                        -1,000

Totals                          $23,200 = $5,000             $18,200

Explanation:

a) Data and Analysis:

1. Cash, $15,000 Common Stock

2. Cash $9,000 Bank Loan $9,000

3. Cash $1,200 Deferred Revenue $1,200

4. Supplies $2,400 Accounts Payable $2,400

5. Prepaid Rent $12,000 Cash $12,000

6. Accounts Receivable $3,000 Service Revenue $3,000

7. Bank Loan $4,000 Cash $4,000

8. Accounts Payable $2,400 Cash $2,400

9. Deferred Revenue $1,200 Service Revenue $1,200

10. Dividends $1,000 Cash $1,000

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2 years ago
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