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Lena [83]
3 years ago
14

Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,300, Work in Proc

essâCutting $3,000, Work in ProcessâAssembly $10,700, and Finished Goods $32,000. During July, the following transactions occurred.
1. Purchased $62,600 of raw materials on account.
2. Incurred $60,100 of factory labor. (Credit Wages Payable.)
3. Incurred $71,000 of manufacturing overhead; $41,000 was paid and the remainder is unpaid.
4. Requisitioned materials for Cutting $15,800 and Assembly $9,000.
5. Used factory labor for Cutting $33,100 and Assembly $27,000.
6. Applied overhead at the rate of $19 per machine hour. Machine hours were Cutting 1,690 and Assembly 1,750.
7. Transferred goods costing $67,700 from the Cutting Department to the Assembly Department.
8. Transferred goods costing $135,000 from Assembly to Finished Goods.
9. Sold goods costing $151,000 for $201,000 on account.

Required:
Journalize the transactions.
Business
1 answer:
Semmy [17]3 years ago
8 0

Answer:

Item 1

Debit : Raw Materials $62,600

Credit : Accounts Payable $62,600

Item 2

Debit :  Wages expense $60,100

Credit : Wages Payable $60,100

Item 3

Debit : Overhead expenses $71,000

Credit : Cash $41,000

Credit : Accounts Payable $30,000

Item 4

Debit : Work in Process - Cutting $15,800

Debit : Work in Process - Cutting $9,000

Credit : Raw Materials $24,800

Item 5

Debit : Work In Process - Cutting $33,100

Debit : Work In Process - Assembly $27,000

Credit : Wages Expense $60,100

Item 6

Debit : Work in Process - Cutting  $32,110

Debit : Work in Process - Assembly $33,250

Credit : Overheads  $65,360

Item 7

Debit : Work in Process - Assembly Department $67,700

Credit : Work in Process - Cutting Department $67,700

Item 8

Debit : Finished Goods Inventory $135,000

Credit : Work in Process - Assembly Department $135,000

Item 9

Debit : Accounts Receivable $201,000

Debit : Cost of Sales $151,000

Credit : Sales Revenue $201,000

Credit : Finished Goods Inventory $151,000

Explanation:

<u>When Costs are Incurred :</u>

Debit the Account to which cost is accumulating and Credit cash when the cash is paid or Accounts Payable when there is no immediate payment.

<u>When items are used in Production :</u>

Debit the Work in Process Account to which the cost relates to and Credit the Account attached to that cost.

<u>When there is a transfer :</u>

Debit the Work in Process Account to which the items are flowing to and Credit the Work in Process Account from which the items are flowing.

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A. true
the gross domestic product acts as a quantitative measure of an economy's economic activity on an annual basis

7 0
3 years ago
A process has low fixed costs and high variable costs. It is currently capacity-constrained. Will the impact of an efficiency im
Lubov Fominskaja [6]

Answer:

Small

Explanation:

Fixed costs are the costs that do not change when output level changes, while variable costs are costs that change as output quantity changes.

When a production process is capacity constrained, it implies that there is a factor that does not allow it to produce more output. Examples of such factors are minor bottlenecks, constrained designs and resources, and others.

A process is said to be efficient when it can avoid waste of resources in producing desired output.

Efficiency improvement therefore occurs when more output can be produced with less resources.

In the question, given that the process is currently capacity-constrained, efficiency improvement will result in producing more output at higher costs because of high variable costs despite that the process has low fixed costs.

As a result, the impact of an efficiency improvement will be small because producing more output will result in incurring higher cost due to high variable costs that change as quantity of output changes. That is, the impact of efficiency improvement will be small because high variable costs with low fixed cost will result in higher production cost.

3 0
3 years ago
Actual indirect materials costs$11,800 $6,700 Actual indirect labor costs 55,600 45,900 Other overhead costs 16,000 49,900 Overh
dusya [7]

Answer:

See below

Explanation:

1. Actual costs = $11,800(indirect material + $55,600(indirect labor) + $16,000(other overhead costs) = $83,400(actual cost)

$91,400(overhead applied) - $83,400(actual cost) = Overhead applied is greater than the actual cost which means that overhead was over applied by $8,000

2. Debit: Manufacturing overhead $8,000

______ Credit: Cost of goods sold $8,000

3. Actual costs = $6,700(indirect material) + $45,900(indirect labor) + $49,900(other overhead costs) = $102,500

$96,700(overhead applied) - $102,000(actual costs) = Overhead applied is less than the actual costs which means that overhead was under applied by $5,800

4. Debit : Cost of goods sold $5,800

_______ Credit: Manufacturing overhead $5,800

7 0
3 years ago
Assume that you are a loan officer of a bank. A local church is seeking a $4 million, 20-year loan to construct a new classroom b
n200080 [17]

Answer:

Explanation:

a.

There is little information on how funds are used or how much money is spent to manage the church. The financial statements have been prepared incorrectly.

Interpretation:

While drafting the financial accounts, the church committed many errors. The church's revenue is equivalent to its daily operations operating expenditures. They have approximately $3 million in funding assets that they do not owe any money on.  

It may be deduced that the church is attempting to preserve asymmetric information, and therefore it will be better to justify its sources of income and use of money in order to determine whether they can or they cannot pay the debt.

b.

The revenue from various channels must be detailed in the yearly report so that the loan officer may make an informed judgment.

Interpretation:

Since payments and contributions account for 90% of revenue and revenue from other sources accounts for 10%, it's surprising how the church earns money in other ways as stated on the income statement. As a result, it's important to understand what other potential revenue streams the church has before approving the loan.

c.

The officer in charge of the loan should check the church's book records to make sure and guarantee that there are no outstanding loans. This situation necessitates a thorough examination and assessment.

Interpretation:

The church has $3 million worth of equipment. The church's expenses, on the other hand, are equivalent to the church's income. As a result, it's unclear how the church acquired the equipment without taking out a loan. As a result, the church must be urged to produce a full breakdown of its expenses, which may be thoroughly and fully studied to see whether there are any financing charges that the church is attempting to hide in its yearly reports.

d.

There is no direct or primary source of income for the church. It solely makes money from charity donations.

Interpretation:

The church's only sources of income are fundraisers and charitable donations. It also doesn't possess any significant revenue streams. Because the church is attempting to conceal numerous possible pieces of information, this may be a case of micro-management by the proprietors, and so these issues should be considered by the officer in charge of the loan before accepting the loan.

8 0
3 years ago
Name the currency that is used by 19 member states and 330 million people, though some politicians and economists are calling fo
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The answer to the question mentioned above is "the Euro".

Euro is the name of the currency that is used and by 19 members states and 330 million people, though some politicians and economist are calling for its retirement. This is the official currency of the Eurozone.
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