1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svet-max [94.6K]
3 years ago
11

Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $8

,700, direct labor of $4,200, and applied overhead of $3,570. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on account) for $29,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July.
July Product Costs Job 120 Job 121 Job 122 Total
Total Direct materials $2,600 $8,300 $4,100 $15,000
Direct labor 3,200 4,500 3,600 11,300
Overhead applied ? ? ? ?

1. Prepare journal entries for the following in July.

a. Direct materials used in production
b. Direct labor used in production.
c. Overhead applied.
d. The sale of Job 120.
e. Cost of goods sold for Job 120.

2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts.
Business
1 answer:
yaroslaw [1]3 years ago
6 0

Answer:

Custom Cabinetry

1. Journal Entries:

a. Debit Work in Process:

Job 120 $2,600

Job 121 $8,300

Job 122 $4,100

Credit Direct materials $15,000

To record the direct materials used in production in July.

b. Debit Work in Process:

Job 120 $3,200

Job 121 $4,500

Job 122 $3,600

Credit Payroll $11,300

To record the cost of direct labor for July.

c. Debit Work in Process:

Job 120 $2,720

Job 121 $ 3,825

Job 122 $3,060

Credit Overhead applied $9,605

To apply overhead at the rate of 85% of direct labor costs.

d. Debit Accounts Receivable $29,500

Credit Sales Revenue $29,500

To record the sale of Job 120 on account.

e. Debit Cost of goods sold $24,920

Credit Finished Goods: Job 120 $24,920

To record the cost of Job 120 sold.

2. July 31 Balances:

Work in Process Inventory = $10,760

Finished Goods Inventory $16,625

Explanation:

a) Data and Calculations:

Overhead application rate = 85% of direct labor cost

Sales price of Job 120 = $29,500

                                         Job 120    Job 121     Job 122      Total

Beginning inventory:

Direct materials              $8,700                                              $8,700

Direct labor                       4,200                                                4,200

Applied overhead             3,570                                                3,570

Total                              $16,400                                             $16,400

Costs incurred during July:

Total Direct materials $2,600        $8,300       $4,100        $15,000

Direct labor                   3,200           4,500        3,600           11,300

Overhead applied               ?                 ?                 ?                 ?

Cost of production:

                                         Job 120    Job 121     Job 122      Total

Beginning inventory:

Direct materials              $8,700                                               $8,700

Direct labor                       4,200                                                 4,200

Applied overhead             3,570                                                 3,570

Total                              $16,400                                              $16,400

Costs incurred during July:

Total Direct materials   $2,600        $8,300       $4,100        $15,000

Direct labor                     3,200           4,500        3,600           11,300

Overhead applied          2,720           3,825        3,060            9,605

Total production costs $24,920    $16,625     $10,760       $52,305

                                      Sold         Completed   In Process

You might be interested in
Coffee Corporation has 2,000 shares of common stock outstanding. John owns 700 of the shares, John’s grandfather owns 100 shares
nekit [7.7K]

Answer:

1,000 shares

Explanation:

The 318 attribution rule states that stock owned directly or indirectly by a partnership is considered to be owned by any partner that owns 5% or more in the business.

This is relevant to family owned businesses and is a way to mark out principal owners of a business in order to avoid tax evasion and fraud.

In this scenario John directly owns 700 of the outstanding shares. But according to the 318 attribution rule, since he he is a 50% partner he owns half of the outstanding 2,000 shares. That is 1,000 shares.

7 0
3 years ago
Assume again that the cost of capital is 7 percent and the effective tax rate is 40 percent. How would the payback, internal rat
vfiekz [6]

Answer:

If the effective tax rate increases then the net savings coming from investments will get lowered as a result the investment will have higher payback period (The increase in effective tax rate would lower demand of the product which means there is decline in net saving arising from the sale of the product). Likewise this decrease in annual net savings will also decrease the internal rate of return which shows that their are increased chances of project rejections. The NPV method is based on cash flows and relevant costing just like IRR and payback method but the only difference is that it assumes that the cash earned would be reinvested at cost of capital. The NPV will also decrease due to increased effective tax rate.

4 0
3 years ago
Which statement is the converse of the given statment
pochemuha
Might seem controversial though :) but I am pretty sure that the correct variant that properly shows the converse of given statement is the third one. As you know, the converse (in plane language) has the same meaning of the statement just by replacing two points. This statement has positive tone (if you make - you ll have) so it's directly coincides with C(you have, cause you have made)
4 0
3 years ago
When you gather primary or secondary data, whal part of the market information management process are you
charle [14.2K]
The answer you are looking for is B
6 0
2 years ago
during the second stage of the ethical decision-making process, managers must determine whether a proposed decision would violat
nikdorinn [45]

When a manager needs to make a decision using the ethical decision-making process and reaches the second stage, they check whether the decision violates the c. fundamental rights of any stakeholders

The ethical decision-making process involves making decisions that are consistent with the relevant ethical views of the company which it draws from the society it is based in.

The second stage of this process involves checking whether the ethics involved in a certain decision, would violate the fundamental rights of shareholders which include:

  • The right to ownership
  • The right to Dividends
  • The rights to evaluate corporate decisions
  • The right to voting power

This is to ensure that the shareholders are taken care of because the first duty of a manager is to their shareholders.

In conclusion, managers need to check whether a decision affects the fundamental rights of shareholders before they embark on it.

<em>Find out more at brainly.com/question/8864856.</em>

<em />

The options for this question include:

a. utilitarian beliefs

b. the global commons

c.  the fundamental rights of any stakeholders

d. home country values

4 0
2 years ago
Other questions:
  • Ruth gives Seth a computer as a gift. Using the computer, Seth develops a new game, for which he obtains intellectual property p
    8·1 answer
  • Commanders at most operational-level headquarters have observed that ccirs are developed to support three major activities. one
    14·1 answer
  • The demand for apples in the U.S. is Qus = 800 - 20P, and Foreign Demand for apples is Qf = 1200 - 40P, where quantity demanded
    11·1 answer
  • What type of relationship exists between the growth of the money supply and changes in the inflation​ rate?
    11·1 answer
  • Sadie hires a new manager. In a couple of weeks, she receives reports that the new manager often plays favorites and does not ac
    6·1 answer
  • Where do deleted files go?
    12·1 answer
  • Payroll records show employee earnings and any deductions from those earnings.<br> True<br> False
    13·1 answer
  • According to the video, what are some common issues treated by Marriage and Family Therapists? Check all that apply.
    6·2 answers
  • When offering financial products to clients, you may:
    12·1 answer
  • Carol and leslie enter into a contract stating that carol will pay leslie $650 per month for the next 20 years. carol will live
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!