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3 years ago

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Preparing Journal Entries for Process Costing SystemDuring its first month of operation, Portia Company purchased $90,000 of mat

erials on account and requisitioned $64,000 of materials for use in production. The company recorded $30,000 of direct labor cost and applied $20,000 of manufacturing overhead. Prepare Portia’s journal entries to record these events.

1 answer:

babunello [35]3 years ago

7 0

Answer:

a.

Date Account Title Debit Credit

XX-XX-XXXX Raw materials inventory $90,000

Accounts Payable $90,000

b.

Date Account Title Debit Credit

XX-XX-XXXX Work in Process Inventory $64,000

Raw materials inventory $64,000

c.

Date Account Title Debit Credit

XX-XX-XXXX Work in Process inventory $30,000

Wages Payable $30,000

d.

Date Account Title Debit Credit

XX-XX-XXXX Work in Process Inventory $20,000

Manufacturing overhead $20,000

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suppose you win the lottery with a jackpot of $30 million. but that's $30 million if you wait 25 years to get your payout. what

vitfil [10]

The value that can be received today is $5,527,475.33 if the interest rate is 7%.

The value that can be received today if the interest rate is 7% can be calculated by using the formula for compound interest. This formula can be given as;

A = P (1 + r/n)^nt

Here, A represents the final amount, P represents the initial balance (which we have to find in this case), r represents the interest rate, n illustrates the number of times interest applied per time period and t represents the number of time periods elapsed.

Now by substituting the given values, we can find the value that can be received today as follows;

A = P (1 + r/n)^nt

30,000,000 = P (1 + 0.07/1)^25×1

30,000,000 = P (1 + 0.07)^25

30,000,000 = P (1.07)^25

P = 30,000,000 ÷ (1.07)^25

P = 5,527,475.33

Therefore, the value that can be received today is calculated to be $5,527,475.33

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1 year ago

Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, h

Paha777 [63]

Answer:

Shoe-leather costs.

Explanation:

Resources wasted when inflation encourages Bob to reduce his money holding for more than 2 weeks incase it does decrease.

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3 years ago

You pay $75 for a ticket to a Drake concert. You think the ticket is worth $100. The night before the concert your friend offers

lukranit [14]

Answer: $80

Explanation:

The opportunity cost is regarded as the real cost of the alternative that was left or forgone.

Based on the information given in the question, the opportunity cost is the free ticket to a Post Malone concert that is worth $80 which was given to me by my friend.

Therefore, the correct option is E.

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3 years ago

One type of Analytical Review involves comparing unaudited numbers and ratios based on What is the purpose of Analytical Review

Dmitry [639]

Answer:

Please find the detailed answer as follows:

Explanation:

1. Preliminary analytical review is performed to gain the understanding of business and enviornment. Purpose of analytical review in preliminary phase of audit is that if auditor finds a huge difference with previous year figure, then auditor examine deeply. If amounts/ratios are similar to previous year then auditor can check randomly.

2. There are two possible situations. One is analytical test and another is substantive test. Examine with ratos and accounting tools is analytical test and detail study is called substantive test. In substantive test auditor collect the detail evidences.

3. Estimated sales of year 2 is $1.200.000+10%= $1.320.000 (Increase 10% from previous year sales) .

Actual sales = COGS*100/53.87756

792.000*100/53.87756= $1470000

Expected discrepency = recorded sales- actual sales

1.320.000-1.470.000= -$150.000

Account recievable turnover ratio = Credit sales/Average recievable

8.16666=1.470.000/Average receivable

Average recievable = $180.000

Average recievable = opening recivable + closing recievable/2

180.000 = 100.000+ closing receivable/2

closing receivable = $260.000

Unaudited account recievable = 1.320.000/12= $110.000

Discrepency in account recievable = 110.000-260.000= $150.000

There is under statement because acyual sales is greater than estimated sales.

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3 years ago

(1) Cash balance per bank, July 31, $8,338.

kondaur [170]

Answer:

Cash account balance after reconciliation: 11,340 dollars

Explanation:

On a bank reconciliation we adjust the balance for the unknow information for each party:

Bank: do not know about a written check until the person goes and cash it. Same with the deposit in transet, we must accrued for this values:

Cash balance per bank, July 31, 8,338.

Deposits in transit, July 31, 3,710.

Outstanding checks, July 31 <u> (708) </u>

Adjusted bank cash balance 11,340

The firm is unaware of the bank charges until reception of the bank statement. It also didn't know about the bank colelction so this are adjustment for hte cash account:

Cash balance per books, July 31, 8,374.

Collected for Sandhill Company 3,026

July bank service charge <u> (60) </u>

Adjusted cash account balance: 11,340

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3 years ago