____________________ earning a low salary, Linda gave money to her parents.

Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payro

Roman55 [17]

Answer:

Marcelino Co.

Journal Entries:

Debit Raw materials $500,000

Credit Accounts Payable $500,000

To record the purchase of raw materials on credit.

Debit Factory payroll $363,000

Credit Cash $363,000

To record payment for factory payroll.

Debit Work in Process:

Job 307 $135,000

Job 307 $220,000

Job 308 $100,000

Credit Raw materials $455,000

To record direct materials used in production

Debit Work in Process:

Job 307 $42,500

Job 307 $75,000

Job 308 $52,500

Credit Factory overhead $170,000

To record overhead applied.

Debit Factory overhead $175,000

Credit Raw materials $50,000

Factory payroll $23,000

Factory rent $32,000

Factory utilities $19,000

Factory equipment depreciation $51,000

To record actual factory overhead costs.

Debit Finished Goods Inventory $828,500

Credit Work in Process:

Job 306 $321,500

Job 307 $507,000

To record the cost of finished goods transferred.

Debit Cost of goods sold $321,500

Credit Finished goods inventory $321,500

To record the cost of goods sold.

Debit Cash $635,000

Credit Sales Revenue $635,000

To record the receipt of cash for sales.

Debit Cost of Goods Sold $5,000

Credit Factory overhead $5,000

To record underapplied overhead.

Explanation:

a) Data and Calculations:

Raw materials inventory, March 31 = $80,000

Raw materials $500,000 Accounts Payable $500,000

Factory payroll $363,000 Cash $363,000

Overhead costs incurred in April :

Indirect materials $50,000 Raw materials $50,000

Indirect labor $23,000 Factory payroll $23,000

Factory rent $32,000 Cash $32,000

Factory utilities $19,000 Cash $19,000

Factory equipment depreciation $51,000 Accumulated depreciation $51,000

Total overhead incurred = $175,000

Predetermined overhead rate = 50% of direct labor cost

Sale of Job 306 for cash = $635,000

Job 306 Job 307 Job 308 Total

Balances on March 31

Direct materials $29,000 $35,000 $64,000

Direct labor 20,000 18,000 38,000

Applied overhead 10,000 9,000 19,000

Costs during April

Direct materials 135,000 220,000 $100,000 $455,000

Direct labor 85,000 150,000 105,000 340,000

Applied overhead 42,500 75,000 52,500 170,000

Total costs $321,500 $507,000 $257,500 $1,086,000

Status on April 30 Finished (sold) Finished (unsold) In process

3 0

3 years ago

Brian lives in Chicago and runs a business that sells pianos. In an average year, he receives $793,000 from selling pianos. Of t

umka21 [38]

Answer:

Brian

1. Implicit and Explicit Costs:

Implicit costs:

The rental income Brian could receive if he chose to rent out his showroom

The salary Brian could earn if he worked as a financial advisor

Explicit costs:

The wages and utility bills that Brian pays

The wholesale cost for the pianos that Brian pays the manufacturer

2. Brian's accounting and economic profit of his piano business:

Accounting profit = $62,000

Economic profit (loss) = ($3,000)

Explanation:

a) Data and Calculations:

Accounting Profit Economic Profit

Sales Revenue $793,000 $793,000

Cost of pianos 430,000 430,000

Wages and utility bills 301,000 301,000

Implicit (Opportunity) Costs:

Rent 15,000

Salary as an accountant 50,000

Total costs 731,000 796,000

Profit (loss) $62,000 ($3,000)

b) Implicit costs are opportunity costs. They include the costs that arise from forgone benefits when another opportunity is taken instead of the other. Explicit costs are costs that are actually incurred by taking an opportunity.

8 0

3 years ago

Jolly Candies is a U.S.-based company that manufactures and distributes candy bars and snack foods globally. The company sources

Anon25 [30]

Answer:

suppliers

Explanation:

Task environment encompasses all external factors that are capable of influencing the business goals or operations of a company. These external factors include customers, suppliers, labor supply, competitors, special interest groups. Most play a major role in influencing the operations of a business, hence are duly considered by any business organizations.

The business relationship highlighted in the question above represents the suppliers dimension of the external factors or task environment, and it affects Jolly Candies operations since they rely on the raw materials supplied by South America Companies to produce candy bars and snack foods they supply globally.

4 0

3 years ago

"Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the flexibility o

JulijaS [17]

Answer:

Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.

Lluvia should choose funding in floating rate

Explanation:

Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%

Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.

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7 0

3 years ago

Tutoring concerns. wally and sally want to go into business together and plan on offering a tutoring service to high school and

Lubov Fominskaja [6]

The type of business that Wally is proposing in the scenario above is partnership. There are three different type of partnership,they are: limited partnership, limited liability partnership and general partnership. Each of these three types provides partners with different level of liability. Thus, Wally was wrong when he said that there could be no personal liability for debts.

6 0

3 years ago