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scoundrel [369]
3 years ago
12

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit

; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the purchase of materials is: Debit Raw Materials Inventory $198,000; credit Work in Process Inventory $198,000. Debit Work in Process Inventory $198,000; credit Accounts Payable $198,000. Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000. Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000. Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000.
Business
1 answer:
Minchanka [31]3 years ago
5 0

Answer:

Raw Material Inventory A/c Dr.        $198,000

  To Accounts Payable A/c                                          $198,000

That is the last option of all the given options.

Explanation:

When inventory is purchased then, effect of such purchase will be:

Increase in inventory with the amount of inventory purchased for this, Raw Material Inventory will be debited,

When inventory is purchased on cash then cash is decreased and thus cash is credited, or

It is purchased on credit, then accounts payable liability is created as there will be a liability to pay to such amount to creditors back with the amount of inventory.

Thus correct entry will be:

Raw Material Inventory A/c Dr.        $198,000

  To Accounts Payable A/c                                          $198,000

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3 years ago
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A corporation issued 5,000 shares of its no par common stock that was assigned a $1 stated value per share. The issue price was
Rus_ich [418]

Answer:

Debit Cash account $50,000

Credit Ordinary share $5,000

Credit Share Premium $45,000

Explanation:

When share issued are paid for at an amount above the par or ordinary value, the excess paid is known as share premium.

The share premium like the par or ordinary value is recognized in the balance sheet as a part of the owners equity.

For a stock unit at par value of $1 for which the issue price was $10,

the share premium per unit

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8 0
3 years ago
A corporate charter specifies that the company may sell up to 20 million shares of stock. The company issues 12 million shares t
Maksim231197 [3]

Answer:

The correct aswer is B) 20 million shares.

Explanation:

The issuance of shares is widely used by companies when it comes to seeking capital, that is, to capitalize. The initial issuance of shares is known as "primary placement." Once the first issue is finished, the company may continue to issue shares as a way to increase its capital.

In the case described, regardless of the shares that are put up for sale, the minutes clearly state that the maximum number that can be sold is 20 million. When the information is updated in the future, this value will change.

6 0
3 years ago
Johns Company manufactures products R, S, and T from a joint process. The following information is available: Product R S T Tota
Kryger [21]

Answer:

C) $ 80,000 $ 70,000

Explanation:

R = ($48,000/$120,000) x $200,000

=0.4×$200,000

= $80,000

S = $200,000-$50,000-$80,000

= $70,000

Therefore the sales value at split-off for products R is $80,000 and S $70,000

6 0
3 years ago
Chambersburg Corp Between 2016 and 2017, Chambersburg sold some equipment that had an original cost of $57,500 . Which statement
DedPeter [7]

Answer:

<em>Detailed Question lifted from google: </em>

<em>Use the information presented below for Chambersburg Corp for 2017 and </em>

<em>2016 to answer the questions that follow. Chambersburg uses the straight-line depreciation method. 2017 2016 Property, plant, and equipment $ 250,000 $190,000 Accumulated depreciation 100,000 85,000 Depreciation expense 62,500 47,500 Net sales 1,000,000 900,000 Average Total assets 625,000 475,000 Refer to the information for</em>

<em>Chambersburg Corp Between 2016 and 2017, Chambersburg sold some equipment that had an original cost of $57,500 . Which statement is most likely true concerning transactions that must have occurred during the period? </em>

<em>a. Chambersburg also purchased additional equipment during the year. </em>

<em> b. The selling price of the equipment sold was reported with net sales. </em>

<em> c. The equipment that was sold had a book value of $12,500. </em>

<em> d. The equipment sold had not been reported with Chambersburg's property, plant and equipment.</em>

<em />

The only applicable answer based on the question is A, <em>Chambersburg also purchased additional equipment during the year. </em>

Explanation:

A. Between 2016 and 2017 <em>Property, plant, and equipment increased by $60,000 (which is $250,000 minus $190,000)</em>

<em />

B. Between 2016 and 2017 Depreciation expense on <em>Property, plant, and equipment increased by $15,000 (which is $62,500 minus $47,500)</em>

<em />

<em>Meaning attributable depreciation to the new addition to PPE of $60,000 is actually $15,000.</em>

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3 0
3 years ago
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