Question 7 of 20

What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance acc

inessss [21]

Explanation:

The adjusting entry is as follows

On December 31

Insurance expense A/c Dr $5,150

To Prepaid insurance A/c $5,150

(Being the insurance expense is recorded)

It is computed below:

= Balance in prepaid insurance account - unexpired amount

= $9,050 - $3,900

= $5,150

While passing the adjusting entry we debited the insurance expense account and credited the prepaid insurance account

7 0

3 years ago

Kimberly Young started her own consulting firm, Young Consulting Inc., on May 1, 2022. The following transactions occurred durin

Softa [21]

Answer:

I used an excel spreadsheet to answer this question.

Download pdf

7 0

4 years ago

projects variable labor costs of $21,500 in March when 8,600 units are produced. If production is expected to drop to 8,000 unit

dlinn [17]

Answer:

Total direct labor cost=$20,000

Explanation:

First, we need to calculate the direct labor cost per unit:

Direct labor cost per unit= total cost / number of units

Direct labor cost per unit= 21,500 / 8,600

Direct labor cost per unit= $2.5

Now, the total cost for 8,000 units:

Total direct labor cost= 2.5*8,000

Total direct labor cost=$20,000

4 0

3 years ago

United Apparel has the following balances in its stockholders’ equity accounts on December 31, 2018: Treasury Stock, $650,000; C

ahrayia [7]

Answer:

United Apparel Balance sheet as of December 31, 2018

Stockholders’ Equity section

Common Stock Capital ............................................$400,000

Preferred Stock Capital.............................................$1,600,000

Additional Paid-in Capital..........................................$6,800,000

Total Paid-in Capital....................................................$8,800,000‬

Retained Earnings.......................................................$1,200,000

Less: Treasury Stock...................................................($650,000)

Total Stockholders Equity..........................................$9,350,000

4 0

3 years ago

Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s management predicts that 6,4

Ann [662]

Answer:

1. Production budget for third quarter for skis - 162,500 skis

2. Direct materials budget for Carbon Fiber for quarter 3 - 323,000 pounds

Cost of carbon Fiber purchases - $ 4,199,000

3. Direct Labor budget for quarter 3 - $ 1,462,500

4. Factory overhead budget for quarter 3 - $ 2,446,000

Explanation:

Computation of Production budget for quarter 3 for skis

Closing inventory- skis end of quarter 3 4,900 skis

Add: Sales for quarter 3 - skis 164,000 skis

Less: Opening inventory - skis ( 6,400) skis

Production for skis in units 162,500 skis

Computation of direct material budget for quarter 3

Closing inventory Carbon fiber 5,400 pounds

Add: Consumption of Carbon fiber in production

162,500 skis * 2 pounds 325,000 pounds

Less: Closing inventory Carbon fiber ( 7,400) pounds

Direct Materials carbon Fiber Budgeted Purchases 323,000 pounds

Cost of Carbon Fiber Purchases ($ 13*323,000 pounds) $ 4,199,000

Computation of direct labor budget for quarter 3

Production of skis for quarter 3 162,500 skis

Direct Labor hours per unit 0.5 hours

Cost per Direct Labor Hours $ 18 per hour

Total Direct Labor Budget (162,500 skis* 0.5 hours * $ 18 ) $ 1,462,500

Computation of Factory overhead budget for quarter 3

Production of skis for quarter 3 162,500 skis

Variable costs $ 8 per labor hours ( 81,250 hours * $ 8) $ 650,000

Fixed overhead per quarter $ 1,796,000

Total overhead for quarter 3 $ 2,446,000

5 0

3 years ago

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