Answer:
1. Calculate the first production department's equivalent units of production for materials and conversion for May.
- materials = 275,000 + 50,000 = 325,000
- conversion = 275,000 + 12,500 = 287,500
2. Compute the first production department's cost per equivalent unit for materials and conversion for May.
- materials = $169,000 / 325,000 = $0.52
- conversion = $253,000 / 287,500 = $0.88
3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.
- materials = 50,000 x $0.52 = $26,000
- conversion = 12,500 x $0.88 = $11,000
- total = $37,000
4. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May.
- materials = 275,000 x $0.52 = $143,000
- conversion = 275,000 x $0.88 = $242,000
- total = $385,000
Explanation:
Beginning WIP 70,000 units
materials $56,100
conversion $16,400
Ending WIP 50,000 units
100% completed for materials (50,000 EU)
25% completed for conversion (12,500 EU)
units started 255,000
total units transferred out 275,000
materials cost added during the period = $112,900
conversion cost added during the period = $236,600
Answer:
1,350 units; 918 units
Explanation:
Ending inventory:
= Beginning inventory + Units started - Units completed and transferred
= 750 + 9,500 - 8,900
= 1,350
Equivalent units of ending work in process for Materials:
= 100% complete × Ending inventory
= 100% × 1,350
= 1,350 units
Equivalent units of ending work in process for Conversion:
= 68% complete × Ending inventory
= 68% × 1,350
= 918 units
Answer:
$972000
Explanation:
Account receivables factored = $ 900,000
Recourse Liability = $ 20,000
Due from Factor Third Bank = 900000 x 7% = $ 63,000
Loss from Factoring = (900000 x 5%) + 20000 recourse liability = $ 65,000
Amount of cash received as a result of this factoring transaction = Accounts receivables factored + Recourse Liability – Loss on factoring – Due from factor.
= 900000 + 20000 – 63000 – 65,000 = $972,000
It looks tricky but its actually simple. Bank statement shows
balance is $1054.13 while Bess check register shows $869.96. For us to know the amount of the
check that was not approved is to get the difference of the bank statement and
Bess check register. $1054.13 minus 869.96 is $184.17. Therefore, the answer is
letter B.
Answer:
a. debit Insurance Expense, $740; credit Prepaid Insurance $740
Explanation:
Insurance payment for 5 years = $3,700
On January 1, $3,700 has been recorded as prepaid expense by debiting prepaid insurance and crediting cash.
At the end of first year an insurance expense for one year is accrued and should be recorded by transferring balance of $740 from prepaid insurance account to insurance expense account
Insurance payment per year = $3,700 / 5 = $740 per year
The adjusting entry will be
Debit Insurance Expense $740
Credit Prepaid Insurance $740
