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3 years ago

Roan Paper Co. produces the paper used by wallpaper manufacturers.

Business

1 answer:

son4ous [18]3 years ago

8 0

Answer:

Roan Paper Co.

Mixing Department

Production Cost Report for March:

Direct Direct Manufacturing Total Costs

Materials Labor O/h Allocated

Beginning inventory $350 $245 $200 $795

Costs added during

March 4,940 3,000 3,225 11,165

Total costs $5,290 $3,245 $3,425 $11,960

less Ending inventory $115 $71 $74 $260

Cost of production $5,175 $3,174 $3,351 $11,700

2. General Journal:

Date Description Debit Credit

March

Cost of production $11,700

Direct Materials $5,175

Direct Labor $3,174

Manufacturing overhead $3,351

To record the cost of production for march.

Direct Materials costs $5,175

Direct Labor costs $3,174

Manufacturing overhead $3,351

Cash Account $8,526

Wages Payable $3,174

To record costs of materials, labor and overhead.

Explanation:

a) Data and Calculations for March:

Direct Direct Manufacturing Total Costs

Materials Labor O/h Allocated

Beginning inventory $350 $245 $200 $795

Costs added during

March 4,940 3,000 3,225 11,165

Total costs $5,290 $3,245 $3,425 $11,960

Total units = 5,000 ( Beginning = 300, March started = 4,200 and Ending = 500 units)

Beginning inventory of 300 and started and completed, 4,200 were 100% complete = 4,500

Ending inventory of 500 were 20% complete = 100 units.

b) Calculation of Equivalent units:

Direct Direct Manufacturing Total Costs

Materials Labor O/h Allocated

Units completed 4,600 4,600 4,600 4,600

Ending inventory 100 100 100 100

Production for March 4,500 4,500 4,500 4,500

Unit cost per

equivalent unit $1.15 $0.71 $0.74 $2.60

Cost of Ending WIP $115 $71 $74 $260

Cost of production $5,175 $3,174 $3,351 $11,700

b) Equivalent units are the units under production multiplied by their percentage of completion. Usually, completed units have 100% completion, while work in process do not have 100% completion with respect to conversion costs, especially. The purpose of calculating equivalent units is to determine accurate costs of units completed.

c) The weighted-average method in allocating production costs means that the beginning inventory, units started and completed in the period, and the equivalent units of ending inventory are added. Then the costs of materials, labor, and overhead are allocated based on the average costs.

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Answer:

Net income for the year = $257,000

Explanation:

Retained earnings for the year= Net income - dividends paid.

Since no dividends were paid, retained earnings for the year = net income for the year. At the end of each accounting period, retained earnings are reported on the balance sheet, and the retained profits for the year are added to the beginning balance of retained earnings, to give a cumulative ending balance of $2,499,000.

therefore retained earnings for the year = ending retained earnings balance - beginning retained earnings balance = $2,499,000.-$2,242,000= $257,000.

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3 years ago

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $49,0

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Answer:

a. Dr Bad debt expense $1,617

Cr Allowance for doubtful debt $1,617

b. Dr Bad debt expense $2,205

Cr Allowance for doubtful debt $2,205

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Estimated uncollectible amount

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Entries required are

Dr Bad debt expense $1,617

Cr Allowance for doubtful debt $1,617

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This means that off the amount uncollectible $245 has already gone bad

Adjusting entries required amounts to

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On jan. 2, callie company received a $700 payment from a customer previously billed for services performed. the journal entry to

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To record On Jan 2, Callie Taylor received a $700 payment from a customer formerly billed for services performed. The journal entry to record this transaction would contain a debit to the cash account and a credit to the Accounts Receivable account.

<h3>What is Journal entry?</h3>

A journal entry exists as an act of keeping or creating records of any transactions either economic or non-economic. Transactions exist listed in an accounting journal that indicates a company's debit and credit balances. The journal entry can consist of several recordings, each of which exists either a debit or a credit.

A journal entry exists as a record of the business transactions in the accounting books of a business. A properly recorded journal entry consists of the correct date, amounts to be debited and credited, an explanation of the transaction, and a unique reference number. A journal entry exists as the first step in the accounting cycle.

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Bezzdna [24]

Answer:

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Explanation:

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