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S_A_V [24]
3 years ago
6

Zang Co. manufacturs its products in a continuous process involving two departments, Machining and Assembly. The following trans

actions are related to production during June:
(a) Materials purchased (on June 1) on account, $180,000.
(b) Materials requisitioned by: Machining, $73,000 direct and $9,000 indirect materials; Assembly, $4,900 indirect materials.
(c) Direct labor used by Machining, $23,000; Assembly, $47,000.
(d) Depreciation expenses: Machining, $4,500; Assembly, $7,800.
(e) Factory overhead applied: Machining, $9,700; Assembly, $11,300.
(f) Machining Department transferred $98,300 to Assembly Department; Assembly Department transferred $83,400 to finished goods.
(g) Sold goods on account, $100,000; cost of goods sold, $68,000.
Business
1 answer:
Zigmanuir [339]3 years ago
4 0

Answer and Explanation:

The Journal entry is shown below:-

1. Material Inventory Dr, $180,000

      To Accounts Payable  $180,000

(Being Material Purchased on account is recorded)

2. WIP Machining Dept. Dr, $73,000

Manufacturing Overheads Machining Dept.  Dr, $9,000

Manufacturing Overheads Assembly Dept.  Dr, $4,900

        To Material Inventory $86,900

(Being Material issued to departments is recorded)

3. WIP Machining Dept.  Dr, $23,000

WIP Assembly Dept.  Dr, $47,000

        To Wages Payable  $70,000

(Being Direct Labor used is recorded)

4. Manufacturing Overheads Machining Dept.  Dr, $4,500

Manufacturing Overheads Assembly Dept.  Dr, $7,800

        To Depreciation Expense  $12,300

(Being Depreciation allocated is recorded)

5. WIP Machining Dept.  Dr, $9,700

WIP Assembly Dept.  Dr, $11,300

      To Man. Overheads Machining Dept. $9,700

       To Man. Overheads Assembly Dept.  $11,300

(Being Factory overheads applied is recorded)

6. WIP Assembly Dept. Dr, $98,300

      To WIP Machining Dept.  $98,300

(Being WIP Transferred is recorded)

7. Finished Goods Inventory  Dr, $83,400

        To WIP Assembly Dept.  $83,400

(Being Finished goods transferred is recorded)

8. Accounts Receivables  Dr, $100,000

      To Sales  $100,000

(Being Goods sold on account is recorded)

9. Cost of Goods sold  Dr, $68,000

          To Finished Goods Inventory  $68,000

(Being Goods sold is recorded)

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Answer:

Company Y

The external financial needed is:

= $1,290.

Explanation:

a) Data and Calculations:

Company Y's financial statements:

Income Statement

Sales                    $7,900

Costs                     5,500

Taxable income $2,400

Taxes (25%)            600

Net income        $1,800

Balance Sheet

Current assets          $3,900

Fixed assets                8,600

Total assets             $12,500

Current liabilities       $2,100

Long-term debt           3,700

Equity                          6,700

Total liab. & equity $12,500

Projected Income Statement:

Sales                    $9,085 ($7,900 * 1.15)

Costs                     6,325 ($5,500 * 1.15)

Taxable income $2,760

Taxes (25%)            690

Net income        $2,070

Dividends = 40% $828

Retained earnings $1,242

Projected Balance Sheet

Current assets          $4,485 ($3,900 * 1.15)

Fixed assets                9,890 ($8,600 * 1.15)

Total assets             $14,375

Current liabilities       $2,415 ($2,100 * 1.15)

Long-term debt           4,018 ($14,375 - 2,415 - 7,942)

Equity                          7,942 ($6,700 + $1,242)

Total liab. & equity $14,375

Working capital = $2,070 ($4,485 - $2,415)

Capital expenditure = $1,290 ($9,890 - 8,600)

External financing needed = Net income minus (working capital plus capital expenditure)

= $2,070 - ($2,070 + 1,290)

= $1,290

7 0
3 years ago
Vertical marketing systems are best described as ______. Multiple choice question. the elimination of costly backward and forwar
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Answer:

professionally managed and centrally coordinated marketing channels.

Explanation:

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.

Vertical marketing systems used as a promotional and sales technique of goods and services by various business firms are best described as professionally managed and centrally coordinated marketing channels.

6 0
3 years ago
Foreign Exchange Market by Business & Economics Research Advisor, from the Library of Congress In 1971, U.S. dollars were no
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Answer:

a floating exchange rate, based on market forces of supply and demand.

Explanation:

Where the exchange rate is floating (as are all major currencies in the world), this will be determined by market forces - this includes supply and demand. As in any other market, the rate will change constantly to show how much of the currency is being traded.

6 0
3 years ago
Freeman corp., a large corporation, plans to issue 45-day commercial paper with a par value of $3,000,000. freeman expects to se
fredd [130]

Answer:

The annualized cost of borrowing is 5.42%

Explanation:

The cost of borrowing is the finance charge which is the dollar amount of the loan that cost the person. Lenders usually charge what is referred to as the simple interest.

The formula to compute the same is as:

Principal  x rate x time = Interest

where

Principal amount is $3,000,000

Rate is not known

Time is 45 days, So time is number of days borrowed divided by number of days in a year

Time = 45 / 365 days

Time = 0.123

Interest = Par value - Selling Value

Interest = $3,000,000 - $2,980,000

Interest = $20,000

Putting the value above:

Rate = Interest / Principal  x Time

Rate = $20,000 / $3,000,000 x  0.123

Rate = $20,000 / $369,000

Rate = 5.42%

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3 years ago
A company purchased land for $350, 000 cash. Real estate brokers commission was $25,000 and $35,000 was spent for demolishing an
docker41 [41]

Under the historical cost principle the cost of land would be recorded at: <u>d. $410,000 </u>.

<u>Explanation</u>:

<em><u>Given</u></em>:

Purchase cost of land = $350,000

Brokers commission = $25,000

Cost for demolishing old building = $35,000

Principle cost of land = ?

Principle cost of land= Purchase cost of land+ Brokers commission+ Cost for demolishing old building

            = $350,000+$25,000+$35,000

            = $410,000

Principle cost of land= $410,000

The correct option is <u>d.$410,000</u>.

7 0
3 years ago
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