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3 years ago

Record the following process costing transactions in the general journal:

Business

1 answer:

Ne4ueva [31]3 years ago

5 0

Answer:

Raw Materials $9,300 (debit)

Account Payable $9,300 (credit)

Assembly Department $4,300 (debit)

Finishing Department $2,400 (debit)

Raw Materials $6,700 (credit)

WIP Inventory-Assembly $10,500 (debit)

Cash $10,500 (credit)

Overheads $12,100 (debit)

Property taxes-plant: Payable $1, 800 (credit)

Utilities-plant : Payable $4, 800 (credit)

Insurance-plant : Payable, $1, 700 (credit)

Provision for Depreciation-plant, $3, 800 (credit)

Work In Process - Assembly Department $7,600 (debit)

Direct labor, $5, 000 (credit)

Manufacturing overhead, $2, 600 (credit)

Work In Process - Finishing Department $11,300 (debit)

Direct labor, $4,700 (credit)

Manufacturing overhead, $6,600 (credit)

Finishing Department, $10,500 (debit)

Assembly Department $10,500 (credit)

Finished Goods Inventory $15,600 (debit)

Finishing Department $15,600 (credit)

Explanation:

Manufacturing costs accumulate in the Work In Process Account of their respective departments.

When goods are transferred out of the Assembly Department to the Finishing Department, de-recognize the cost from Assembly Department (credit) and recognized the cost in Finishing Department (debit).

When cost of goods completed are transferred out of the Finishing Department into Finished Goods Inventory, we de-recognize the cost from Finishing Department and recognize it in the Finished Goods Inventory.

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Sexton, Corp., has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $ 860 $ 940 $ 900 $ 1,000 Sales in the y

earnstyle [38]

Answer:

Q1 Q2 Q3 Q4

a. Payment of accounts ($) 258.00 282.00 270.00 300.00

b. Payment of accounts ($) 258.00 282.00 270.00 300.00

c. Payment of accounts ($) 258.00 282.00 270.00 300.00

Explanation:

Given:

Q1 Q2 Q3 Q4

Sales ($) 860 940 900 1,000

Therefore, we have:

a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

This is done as follows:

Q1 Q2 Q3 Q4

Order (30% of Sales) ($) 258.00 282.00 270.00 300.00

Payment of accounts ($) 258.00 282.00 270.00 300.00

b. Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

A 90-day payables period implies that the payment has be made within the next 90 days or within one quarter or the same quarter. Therefore, we have:

Q1 Q2 Q3 Q4

Order (30% of Sales) ($) 258.00 282.00 270.00 300.00

Payment of accounts ($) 258.00 282.00 270.00 300.00

c. Calculate payments to suppliers assuming a 60-day payables period.

A 60-day payables period implies the payment for the Order in each of the quarters has to be made in the same quarter.

Therefore, we have:

Q1 Q2 Q3 Q4

Order (30% of Sales) ($) 258.00 282.00 270.00 300.00

Payment of accounts ($) 258.00 282.00 270.00 300.00

Note:

It can be observed that the answer look the same for all the questions.

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3 years ago

A special repair to a machine will extend the life of the machine an additional four years beyond the original estimated life of

Bumek [7]

Answer:

C. A capital expenditure.

Explanation:

This is an example of a capital expenditure as it makes significant improvements to the machines and extends the life considerably.

These types of expenses are capitalized in the balance sheets under the original asset name and the asset is revalued by the improvement cost and stated at net book value + improvement.

Revised depreciation is then calculated on this new NBV as applicable with increased life of asset.

Hope that helps.

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3 years ago

A __________ is a group of products that are closely related because they satisfy a class of needs, are used together, are sold

konstantin123 [22]

Answer: product line

<span>A group of products which are closely related, under a single brand which satisfies same needs, are used together and are sold to the same group of customers, distributed through the same company is called product line. </span>

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3 years ago

Mega Loan Company has very stringent credit requirements and, accordingly, has negligible losses from uncollectible accounts. Th

AfilCa [17]

Answer: The correct answer is "(A) Materiality.".

Explanation: The concept demonstrated is Materiality because by having a mechanism for preventing bad accounts through their strict requirements, they only recorded bad accounts when they actually existed, instead of making a provision.

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3 years ago

What are examples of explicit cost?A. the amount of money the owner could have made by investing in an alternative activity B. t

STatiana [176]

Answer:

B. the cost of the business owner’s time and labor paying for gas for a company vehicle

Explanation:

Explicit cost are known as actual costs. They are costs incurred in the running of a business or in the production process . They are usually reported in the financial statements.

Implicit costs are opportunity costs.

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3 years ago