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Ronch [10]
3 years ago
8

The following events took place for Technology Treasures Manufacturing Company during January, the first month of its operations

as a producer of digital video monitors: a. Purchased $138,600 of materials. b. Used $93,540 of direct materials in production. c. Incurred $182,560 of direct labor wages. d. Incurred $213,040 of factory overhead. e. Transferred $426,220 of work in process to finished goods. f. Sold goods for $660,000. g. Sold goods with a cost of $367,500. h. Incurred $86,200 of selling expense. i. Incurred $70,250 of administrative expense. Required: Using the information given, complete the following: a. Prepare the January income statement for Technology Treasures Manufacturing Company. Be sure to complete the statement heading. Refer to the lists of Accounts, Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.
Business
1 answer:
antiseptic1488 [7]3 years ago
5 0

Answer:

Technology Treasures Manufacturing Company

a) Technology Treasures Manufacturing Company

Income Statement for the month ended January 31

Sales revenue                  $660,000

Cost of goods sold             367,500

Gross profit                      $292,500

Expenses:

Selling expense $86,200

Admin. expense  70,250   156,450

Net income                      $136,050

b) Ending balances of:

Materials Inventory, $45,060

Work in Process Inventory, $62,920

Finished Goods Inventory, $58,720

Explanation:

a) Data and Analysis:

a. Raw materials $138,600 Cash $138,600

b. Work in process$93,540 Raw materials $93,540

c. Work in process $182,560 Payroll expenses $182,560

d. Work in process $213,040 Factory overhead $213,040

e. Finished goods $426,220 Work in process $426,220

f. Cash $660,000 Sales revenue $660,000

g. Cost of goods sold $367,500 Finished goods $367,500

h. Selling expense $86,200 Cash $86,200

i. Administrative expense $70,250 Cash $70,250

Materials Inventory

Account Titles              Debit    Credit

Cash                      $138,600

Work in process                    $93,540

Ending balance                       45,060

Work in Process Inventory

Account Titles              Debit    Credit

Raw materials         $93,540

Payroll expenses     182,560

Factory overhead    213,040

Finished goods                        $426,220

Ending balance                            62,920

Finished Goods Inventory

Account Titles              Debit    Credit

Work in process    $426,220

Cost of goods sold                  $367,500

Ending balance                            58,720

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Ramsey Corporation desires to earn target net income of $90,000. If the selling price per unit is $30, unit variable cost is $24
Stels [109]

Answer:

b. 75,000 units

Explanation:

Fixed cost = $360,000

Target net income = $90,000

Selling price per unit = $30

Unit variable cost = $24

The computation of net income is shown below :-

= (Fixed expenses + target profit) ÷ (Contribution margin per unit)

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $30 - $24

= $6

So, the net income is

= ($360,000 + $90,000) ÷ ($6)

= ($450,000) ÷ ($6)

= 75,000 units

7 0
3 years ago
Sanibel Autos Inc. merged with its competitor Vroom Autos Inc. This allowed Sanibel Autos to use its technological competencies
Nimfa-mama [501]

Answer:

Horizontal integration

Explanation:

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Horizontal integration is when businesses bate the same level in the value chain collaborate to increase profits.

In the give scenario Sanibel Autos Inc. merged with its competitor Vroom Autos Inc, and Sanibel Autos to use its technological competencies along with Vroom Autos' marketing capabilities to capture a larger market share.

The stage of value chain is when businesses prospect for customers. This interpretation enables them gain more customers.

8 0
3 years ago
Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would require an adj
tamaranim1 [39]

Answer:

The correct answer is debit accounts receivable, credit cash.

Explanation:

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6 0
2 years ago
If the production function of ideas is as follows: then the function exhibits:
miss Akunina [59]

Answer:

Option c. Decreasing returns to the ideas stock but increasing returns overall

Explanation:

In economics, the challenge will be to increase the production of the goods and render more services. However, the return to the flattening curve means that there would be a change in the trends. Thus, in this case, there would be a variability in the supply and demand chain. Such tends to happen with drastic changes in the trends.

5 0
2 years ago
Vinson Company purchased a patent for $180,000 at the beginning of Year8, and estimated that its expected useful life was 5 year
Alona [7]

Answer:

amortization expense is $36000

Explanation:

given data

purchased = $180000

time = 5 year

to find out

amount recorded as amortization expense

solution

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so here

amortization expense will be purchased / time

amortization expense =  purchased / time

amortization expense = 180000 / 5

so amortization expense is $36000

6 0
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