Below is the complete list of items in processing for 5,000 gallons:
Direct material rate for 5,000 gallons is $5,000,While the conversion rate for 5,000 gallons in 70% completed is 1,225.Total Complete list of the items in process is $6,225Direct Materials cost for 60 gallons is 66,000,Direct labor rate is 10,500factory overhead applied for the month is 7,275 therefore, total production cost is amounting to $90,000
Answer:
A.31-Jan
Dr Product Warranty Expense $30,825
Cr Product Warranty Payable $30,825
B. 15-Aug
Dr Product Warranty Payable $513
Cr Supplies $391
Cr Wages Payable $122
Explanation:
a. Preparation of the journal entry for the estimated warranty expense on January 31 for January sales Jan. 31
31-Jan
Dr Product Warranty Expense $30,825
(411,000*7.5%)
Cr Product Warranty Payable $30,825
b. Preparation of the journal entry for the August 15 warranty work
15-Aug
Dr Product Warranty Payable $513
($391+$122)
Cr Supplies $391
Cr Wages Payable $122
Answer:
Net Income : $16.616
Retained Earnings: $92.256
Please see details below:
Explanation:
Income Statement 2017
Sales $71.920
Advertising Expenses -$2.232
Miscellaneous Expenses -$50.096
Utilities Expenses -$2.976
Net Income $16.616
Retained Earnings Report
Opening retained earnings $ 83.080
Add: Net Income $ 16.616
Subtotal $ 99.696
Less: Dividens -$ 7.440
Total $ 92.256
Answer:
True
Explanation:
Some owners of a regular partnership (limited liability partnership) or a corporation (S-corporation) enjoy limited liability, unlike the owners of proprietorships, whose business liabilities and solvency are backed with the personal assets of the owners. The owners of a C-corporation enjoy full limited liability unless the corporate veil is lifted by the court, depending on prevailing circumstances. With limited liability also comes limited participation in the management of the entity.