Answer:
$117,000
Explanation:
All costs incurred in manufacturing a product are recorded in the Work in Process Account. The Debit entry on this Account shows the increase in costs and the credit entry shows the transfer of goods to Finished Goods Inventory
So the Work In Process Account must be debited with the Total labor Cost incurred of $117,000 ($106,000 direct labor + $11,000 indirect labor)
Conclusion :
The proper journal entry to record these events would include a debit to Work in Process for $117,000
Answer:
Kraft is left without any liability to the creditors of Johnson Enterprises.
Explanation:
There are three statements or conditions given that free Kraft from any responsibility with the creditors of Johnson Enterprises. These are:
(1) Kraft is a limited partner of Johnson Enterprises. This means that it also has limits of responsibilities.
(2) As provided in the limited partnership agreement, Kraft decided to leave the company. There was an agreement that allowed Kraft to make the decision to leave society.
(3) The company returned to Kraft its capital contribution of $ 20,000. In proceeding to return the capital contribution, Kraft was released from any responsibility with the creditors that were left to Johnson Enterprises.
Kraft's responsibility to Johnson Enterprise creditors is based on the operating agreement of the limited liability company (LLC) that determines how partners allocate profits and losses. If the LLC's operating agreement does not establish such a provision, gains and losses are generally allocated based on the value of member contributions.
In conclusion, Kraft is left without any liability to the creditors of the previous company to which it belonged.
Hope this helps!
Answer:
(A) $425,000
(B) $24,350
Explanation:
(a) Average Operating Assets:
= (Beginning Operating Assets + Ending Operating Assets) ÷ 2
= ($390,000 + $460,000) ÷ 2
= $425,000
Therefore, the average operating assets is $425,000.
(b) Residual Income:
= Operating Income - (Minimum Rate of Return × Average Operating Assets)
= $66,850 - (10% × $425,000)
= $66,850 - $42,500
= $24,350