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3 years ago

Patti Company owns 80% of the common stock of Shannon, Inc. In the current year, Patti reports sales of

Business

1 answer:

Nikitich [7]3 years ago

3 0

Answer:

$7,604,500

Explanation:

Total cost of goods sold:

= Cost of goods sold of Patti Company + Cost of goods sold of Shannon Inc.

= $7,500,000 + $160,000

= $7,660,000

Consolidated cost of goods sold:

= Total cost of goods sold - Intra-Entity sales added in cost of goods sold of Shannon Inc. + Unrealized profit on ending inventory eliminated by adjusting cost of goods sold

= $7,660,000 - $60,000 + ($60,000 × 0.25) × 30%

= $7,660,000 - $60,000 + $4,500

= $7,604,500

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Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (

Fofino [41]

Answer and Explanation:

The direct labor overhead rate using the direct labor hours is shown below:-

Direct labor overhead rate = Total overheads ÷ Direct labor hours

= $220,800 ÷ 1,725

= $128

b. The machine hour overhead rate using the machine hours is

= Total overhead ÷ Machine hours

= $220,800 ÷ 4,600

= $48

The factory overhead costs using direct labor hour is

Particulars Automobile Valve Wheels Total

bumpers covers

Direct labor

hours 730 480 515

Overhead rate $128 $128 $128

Total $ 93,440 $61,440 $65,920 $220,800

For determining the total overhead we simply multiply the direct labor hours with overhead rate.

The factory overhead costs using machine hour is

Particulars Automobile Valve Wheels Total

bumpers covers

Machine hours 1,970 1,270 1,360

Overhead rate $48 $48 $48

Total overhead $94,560 $60,960 $65,280 $220,800

For determining the total overhead we simply multiply the machine hours with overhead rate.

7 0

3 years ago

E21A1. (Lessee Entries; Finance Lease with No Residual Value) (LO 1, 4) DU Journeys enters into an agreement with Traveler Inc.

Nadusha1986 [10]

Answer:

<u>(a) Prepare DU Journeys' journal entries for 2016, 2017, and 2018.</u>

Date Account Title and Explanation Debit($) Credit($)

31/12/2016 Right of Use asset 15,000

Lease Liability 15,000

(to record lease of asset)

31/12/2017 Interest Expense 1,200

Lease Liability 4,352.82

Cash 5,552.82

(to record interest expense and lease payment)

31/12/2017 Amortization Expense 5,000

Right of use Asset 5,000

(to record amortization expense for right of use asset)

31/12/2018 Interest Expense 851.77

Lease Liability 4,978.69

Cash 5,830.46

(to record interest expense and lease payment)

31/12/2018 Amortization Expense 5,000

Right of use Asset 5,000

(to record amortization expense for right of use asset)

Date: 31/12/2016

Annual Payment: -

Interest Expense: -

Reduction of Lease Liability: -

Lease Liability: $15,000

Depreciation Expense: -

Date: 31/12/2017

Annual Payment: $5,552.82

Interest Expense: $1,200

Reduction of Lease Liability: 4352.82

Lease Liability: 10647.18

Depreciation Expense: $5,000

Date: 31/12/2018

Annual Payment: $5,830.46

Interest Expense: 851.7744

Reduction of Lease Liability: 4978.6856

Lease Liability: -44331.5056

Depreciation Expense: $5,000

Date: 31/12/2019

Annual Payment: $6,121.98

Interest Expense: -3546.520448

Reduction of Lease Liability: - 44331.5056

Lease Liability: 0

Depreciation Expense: $5,000

(b) Consumer Price index means: book the same amount year to year for payment. The increase in CPI may be booked as an expense when incurred.

5 0

3 years ago

Sunland Company reported the following information for the month of April: Units Work in Process Beginning inventory, April 1 8,

coldgirl [10]

Answer:

50,900 units

Explanation:

a. The computation of the units were transferred out of Work in Process Inventory is shown below:

= Beginning inventory of work in process units + added to the production units - ending inventory of work in process units

= 8,100 units + 47,600 units - 4,800 units

= 50,900 units

Basically we added the production units and deduct the ending inventory of work in process units to the Beginning inventory of work in process units so that the transferred out units could come

7 0

3 years ago

Brianna is the top-performing cheerleader and captain of the cheer team. Which of the following statements would result in the a

Reptile [31]

C should be the correct answer if not it’s A

3 0

3 years ago

A tile manufacturer has supplied the following data: Boxes of tiles produced and sold 520,000 Sales revenue $ 2,132,000 Variable

Greeley [361]

Answer:

vdf

Explanation:

vnfdhhddhehejejrjrjrjrjrjrrururrirjriririrkrkrkr

3 0

3 years ago