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Ilya [14]
3 years ago
8

During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as f

ollows:
Jan. 6 Purchased goods for $1,200 from Green with terms 2/10, n/30.
6 Purchased goods from Munoz for $900 with terms 2/10, n/30.
14 Paid Green in full.
Feb. 2 Paid Munoz in full.
28 Purchased goods for $350 from Reynolds with terms 2/10, n/45.


Required:
Prepare journal entries to record the transactions, assuming Axe uses a perpetual inventory system.
Business
1 answer:
malfutka [58]3 years ago
5 0

Answer:

Explanation:

journal entries in the books of AXE

jan 6   purchased goods from Green worth $1200 term 2/10 , n/30

                                      Inventory a/c $1200

                               Accounts Payable - green $1200

jan 6    purchased goods from munoz worth $900

                                                          inventory a/c$900

                                         Accounts Payable - munoz $900

jan 14   Payment being made to green. Since payment is made within 8 days so discount will be recieved by Axe( note term 2/10 means if payment is made within 10 days axe will recieve discount @2%)

                                       Accounts payable - green $1200

                                                                         Cash                  $1,176

                                                         discount recieved              $    24

( being discount recieved [email protected]% = $24)

Feb 2 payment made to munoz , since it is paid after 10 days no discount will be recieved

                          Accounts payable- munoz $900

                                                      Cash                $900

feb 28                  purchased goods worth $350 from reynold

                                                   Inventory $350

                                                          Accounts payable - reynold $350

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White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermin
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Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

Overhead Rate (Cutting Department) = $5.5 per machine hour = $5.5 per machine hour

Overhead Rate (Finishing Department) = $12.2 per labour hour

b. Total Manufacturing Cost = $644

c. Yes

Explanation:

a. Compute the predetermined overhead rate to be used in each department.

Given

Cutting Department

The Cutting Department bases its rate on machine-hours

Manufacturing Overhead Costs = $264,000

Machine Hours = 48,000

Finishing Department

The Finishing Department bases its rate on direct labor-hours.

Manufacturing Overhead Costs = $366,000

Direct Labour Cost = $270,000

Overhead Rate (Cutting Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Cutting Department) = $264,000/48,000

Overhead Rate (Cutting Department) = $5.5 per machine hour

Overhead Rate (Finishing Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Finishing Department) = $366,000/$270,000

Overhead Rate (Finishing Department) = 1.36

Overhead Rate (Finishing Department) = 136% direct labour cost

b.

The Cutting Department bases its rate on machine-hours

Given

Machine hours = 80 machine hours

Overhead Rate = $5.5 per machine hours ------ Calculated

The Finishing Department bases its rate on direct labor-hours.

Given

Direct Labour Cost = 150

Overhead Rate = 136% labour cost ------ Calculated

Overhead Applied (Cutting Department) = 80 * 5.5

Overhead Applied = 440

Overhead Applied (Finishing Department) = 136% * 150

Overhead Applied = $204

Total Overhead Applied = $440 + $204

Total = $644

c. Yes

If they use a plantwide rate based on direct labor cost and if the jobs has longer machine hours and small amount of labor cost they will be charged less overhead cost.

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rewona [7]

Answer:

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Explanation:

<em>The cost of goods available for sale is the sum of the value of the opening inventory plus the cost of new purchase. The cost of new purchase would include carriage inward cost if any.</em>

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                                                                           $

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