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iragen [17]
3 years ago
9

The following information is available for Lock-Tite Company, which produces special-order security products and uses a job orde

r costing system.
April 30 May 31
Inventories
Raw materials $ 42,000 $ 44,000
Work in process 9,400 18,400
Finished goods 59,000 33,200
Activities and information for May
Raw materials purchases (paid with cash) 191,000
Factory payroll (paid with cash) 200,000
Factory overhead
Indirect materials 17,000
Indirect labor 46,000
Other overhead costs 91,000
Sales (received in cash) 1,900,000
Predetermined overhead rate based on direct labor cost 55 %
Compute the following amounts for the month of May using T-accounts.
Cost of direct materials used.
Cost of direct labor used.
Cost of goods manufactured.
Cost of goods sold.*
Gross profit.
Overapplied or underapplied overhead.
*Do not consider any underapplied or overapplied overhead.
Raw Materials (RM) Work in Process (WIP)
Beginning Balance 42,000 17,000 Indirect materials Beginning Balance 9,400 Cost of goods manuf.
RM purchases 191,000 172,000 DM used DM used 172,000
DL used 154,000
Overhead applied
Ending balance 44,000 Ending balance 335,400
Finished Goods (FG) Factory Overhead
Beginning Balance 59,000 Indirect materials Overhead applied
Cost of goods manuf. Indirect labor
Other overhead costs
Ending balance 59,000
Underapplied OH
Income statement (partial)
Sales
Cost of goods sold
Gross profit

Business
1 answer:
ValentinkaMS [17]3 years ago
7 0

Answer:

• Cost of direct materials used $172,000

• Cost of direct labor $154,000

• Cost of goods manufactured $401,700

• Cost of goods sold $427,500

• Gross profit $1,472,500

Explanation:

Please see attached detailed solution to the above questions and answers.

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The buyer notifies the seller in writing of a termination of the contract under the Loan Objection Deadline. What happens to the
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Answer:

The earnest money must be returned to the buyer.

Explanation:

The loan objection deadline sets a specific by which the buyer must present a written notification to the seller stating that he/she will not be able to purchase the property due to problems related to obtaining a mortgage loan (or really any other reason, since only the buyer knows about his/her loan status). After this date, if the buyer cannot secure the mortgage loan and finish the purchase, the earnest money will be lost and must be given to the seller.

5 0
3 years ago
Suppose a riskless project requires an initial investment of $10 and will generate a one-time cash inflow of $30 two years later
Evgesh-ka [11]

Answer:

D. The payback period is less than 2 years.

Explanation:

Discount rate                 5%  

                                        0      1          2

intital investment        -10  

cash flow                       0        30

Total cash flow         -10      0        30

NPV                        17.21  

IRR                                 73%  

Therefore, The NPV is 17.21 and is positive, the statement is True.

IRR > 50%, Therefore the statement made is True

Accounting rate of return = {[(30 - 10)/10]^(1/2)} - 1

                                           = 41% > 0

Therefore, The statement made is true.

Payback period = 2 years, Therefore the statement made is NOT true.

7 0
3 years ago
Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numb
tankabanditka [31]

Answer:

The instructions are listed below

Explanation:

- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.

- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.  

- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.

- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

- Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have production costs that include: Direct labor, Raw materials, Manufacturing supplies, Overhead that's directly tied to the production facility such as electricity.

Giving the following information:

Factory rent $ 3,110: Product - MOH

Company advertising 1,070: Period

Wages paid to assembly workers 31,700: Product - DL

Depreciation for salespersons’ vehicles 2,150: Period

Screws 560: Product - DM

Utilities for factory 820: Product - MOH

Assembly supervisor’s salary 3,600: Product - MOH

Sandpaper 195: Product - MOH

President’s salary 5,180: Period

Plastic tubing 4,130: Product - MOH

Paint 210: Product - DM

Sales commissions 1,310: Period

Factory insurance 1,120: Product - MOH

Depreciation on cutting machines 2,120: Product - MOH

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3 0
3 years ago
What is a lease? help me please
SOVA2 [1]
Its like renting but you have the option to buy at the end i believe.
4 0
3 years ago
Read 2 more answers
You put $10000 in an account earning 5%. After 3 years, you make another deposit into the same account. Four years later (7 year
ikadub [295]

Answer:

money deposited after end of 3rd year is $4877.75  

Explanation:

given data

initial amount  = $10000

rate = 5%

time = 3 year

after 7 year account balance = $20000

solution

we consider here money deposited after end of 3rd year is = x

first we get here compounded amount after 3 years as

compounded amount = initial amount × (1+r)^{t}    ................1

compounded amount = 10000 × (1+0.05)^{3}

compounded amount = $11576.25

so at 7 year account balance is

account balance = ( compounded amount + x )  × (1+r)^{t} ....................2

$20000  = ( $11576.25 + x ) × (1+0.5)^{4}  

solve it we get

x =  $4877.75  

so money deposited after end of 3rd year is $4877.75  

7 0
3 years ago
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