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arsen [322]
3 years ago
11

Compute the Cost of Goods Sold for 2016 using the following information:Direct Materials, Jan. 1, 2016 $40,000Work-in-Process, D

ec. 31, 2016 69,000Direct Labor 48,500Finished Goods, Dec. 31, 2016 105,000Finished Goods, Jan. 1, 2016 128,000Manufacturing Overhead 72,500Direct Materials, Dec. 31, 2016 43,000Work-in Process, Jan. 1, 2016 87,000Purchases of Direct Material 75,000A) $211,000B) $234,000C) $198,000D) $244,000
Business
1 answer:
guapka [62]3 years ago
6 0

Answer:

Cost of Goods Sold = $234,000

Option B is correct ($234,000)

Explanation:

First we will calculate total direct material used in production:

Total Direct material=Starting Direct Material+ Purchases of Direct Material+ Ending Direct material

Total Direct material=$40,000+$75,000-$43,000

Total Direct material=$72,000

Calculating Cost of goods Manufactured:

Cost of goods Manufactured=Total Direct material+Direct labor+ Manufacturing Overhead+Beginning WIP inventory-Ending WIP inventory

Cost of goods Manufactured=$72,000+$48,500+$72,500+$87,000-$69,000

Cost of goods Manufactured=$211,000

Cost of Goods Sold = Cost of goods Manufactured+ Starting Finished Goods-Ending Finished Goods

Cost of Goods Sold = $211,000+$128,000-$105,000

Cost of Goods Sold = $234,000

Option B is correct ($234,000)

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Beginning inventory for the month contained 3,000 units that were 35% complete with respect to materials. 57,000 units were comp
notka56 [123]

Answer: 57,550 units

Explanation:

When using the weighted average method, the units completed and transferred out are assumed to include the opening inventory.

The weighted average equivalent units are therefore:

= Units completed and transferred out + Equivalent ending units

= 57,000 + (10% * 5,500)

= 57,000 + 550

= 57,550 units

6 0
3 years ago
A situation in which a buyer has limited supplierâ options, is procuring a criticalâ item, needs technologyâ innovation, or is c
Dmitry_Shevchenko [17]

Answer:

Collaborative relationship

Explanation:

Here, it requires at least 2 parties to consent to this and the aim is to allow mutual benefits between both parties where they both benefit from each other. Thus, with this, more resources can be pumped to get the appropriate supply that is technologically advanced and equipped to to be used to foster the business

7 0
3 years ago
Glavine Company issues 6,000 shares of its $5 par value common stock having a fair value of $25 per share and 9,000 shares of it
almond37 [142]

Answer:

                                                                                        $

Market value of common stocks   (6,000 x $25)  = 150,000

Market value of preferred stocks (9,000 x   $20) = 180,000

Market value of the company                                    330,000

Proceeds allocated to common stocks

= $150,000/$330,000 x $312,000

= $141,818

The correct answer is B

Explanation:

The market value of the company is the aggregate of market value of common stocks and market value of preferred stocks.The market value of each stock is equal to number of each stock outstanding multiplied by market price per share. Thus, the proceeds allocated to common stock equals the market value of equity divided by market value of the company multiplied by the lump sum.

4 0
3 years ago
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates
DanielleElmas [232]

Answer:

Stridewell Corporation

Journal Entries:

Debit Cash Account $625,000

Credit Common Stock $625,000

To record the issue of 125,000 shares for cash.

Debit Office Equipment $102,500

Credit Cash Account $41,000

Credit Note Payable $61,500

To record the purchase of office equipment.

Debit Inventory $250,000

Credit Accounts Payable $250,000

To record the purchase of inventory.

Debit Accounts Receivable $425,000

Credit Sales Revenue $425,000

To record the sale of goods on account.

Debit Cost of Goods Sold $212,500

Credit Inventory $212,500

To record the cost of goods sold.

Debit Rent Expense $5,500

Credit Cash Account $5,500

To record the payment of rent for the month.

Debit Prepaid Insurance $2,880

Credit Cash Account $2,880

To record the payment for insurance for a year.

Debit Accounts Payable $180,625

Credit Cash Account $180,625

To record the payment to suppliers on account.

Debit Cash Account $85,000

Credit Accounts Receivable $85,000

To record the receipt of cash from customers.

Debit Dividend $6,250

Credit Cash Account $6,250

To record the payment of cash dividend.

Debit Depreciation Expense - Office Equipment $2,050

Credit Accumulated Depreciation - Office Equipment $2,050

To record depreciation expense for the month.

Debit Insurance Expense $240

Credit Prepaid Insurance $240

To record insurance expense for the month.

Explanation:

Stridewell's insurance expense that expired for the month is obtained by dividing the Prepaid Insurance by 12 since it is for one year.  Thus, Stridewell obtains $240 ($2,880/12) as the expense for the month.  The balance remaining in the Prepaid Insurance is a current asset which is carried into the next month.

Journal entries help us to identify the accounts involved in each Stridewell's transaction and the account it should debit and the one it should credit. They are the initial record made by Stridewell in its accounting books for each business transaction.

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A lack of the resources needed to go into producing goods and services is called what
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