Question 5 of 10

Jim Heary is the custodian of petty cash. Jim, who is short of personal cash, decided to pay his home electrical and phone bills

Mkey [24]

Answer: Yes, <em>Jim should pay back the money he used for his electric and phone bill.</em> Since he is the custodian of petty cash for the company it is his responsibility to account for the money. The petty cash should only be used for work related expenses. The company could ask for an audit and Jim could get fired because there no record of the cash being given out for company expenses. Jim should put an IOU in the petty cash drawer and explain why it was taken out. Jim should also speak with one of the managers of the department to explain about the missing petty cash.

8 0

3 years ago

Jose Garcia agrees to contribute land with a fair market value of $10,000 in exchange for 200 shares of Damian Inc.'s common sto

omeli [17]

Answer:

Paid-in Capital in Excess of Par $8,000

Explanation:

Based on the information given we were told that Garcia contribute land that has a fair market value of the amount of $10,000 which was exchange for 200 shares of the common stock of Damiann Inc.'s that has a par value of $10 per share which means that the journal entry to record the transaction in the books of Damian, Inc., will include a credit to Paid-in Capital in Excess of Par $8,000 calculated as:

Fair market value $10,000

Less common stock $2,000

(200 shares *$10 per share)

Paid-in Capital in Excess of Par $8,000

5 0

3 years ago

Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amoun

marusya05 [52]

Answer:

(a) $54796 (b) $58,800 (c) $ 15100 (d) $117916 (e) $ 352916 (f) $ 374216

(g) $326316 (h) $ 82824.18 (i) $ 64276.82 (j) $234500 (k) $1900

Explanation:

The calculations are as follows.

Case A Case B Case C

Direct materials used $ (a) 54796 $91,200 $69,000

Direct labor 52,200 143,800 (h) 82824.18

Manufacturing overhead applied 42,804 (d)117916 (i)64276.82

Total manufacturing costs 149,800 (e) 352916 216,100

Working

The following formula is used to find the missing values :

Total MFG Cost= DM + DL+ MFG OH

a) 149800- 42804-52200= 54796

d) Ratio of MfgOH to DL= 42,804/52,200= 0.82

Mfg Overhead for Case 2= 0.82* 143,800= 117916

e) 91,200+ 143,800+ 117916= 352916

h+i) Conversion Costs for Case 3= 216100-69000=147100

Mfg OH is 82% of DL

Total Conversion Cost will be 1.82

1.82x= 147100

x= 147100/1.82

x= 82,824.18

h)DL= 82824.18

i) MFG OH= CC- DL= 147100- 82824.18= 64276.82

Work in process 1/1/14 (b) 58,800 21,300 18,400

Total cost of work in process 208,600 (f) 374216 (j)234500

Working

The following formula is used to find the missing values

Total WIP Cost- Total MFG Cost= Opening WIP

b)Total WIP Cost- Total MFG Cost= 208600-149800= 58,800

f) Total MFG Cost+ WIP= 352916 + 21,300 =374216

j) Total MFG Cost+ WIP=216,100 + 18,400= 234500

Work in process 12/31/14 (c) 15100 11,900 (k)1900

Cost of goods manufactured 193,500 (g) 326316 232,600

Working

The following formula is used to find the missing values

Total WIP-CGS= Ending WIP

c) Total WIP-CGS= 208600-193500 = 15100

g) Total WIP- Ending WIP= 374216- 11,900 = 326316

k) Total WIP-CGS=234500- 232,600 = 1900

After filling in the blanks:

Case A Case B Case C

Direct materials used $ (a) 54796 $91,200 $69,000

Direct labor 52,200 143,800 (h) 82824.18

Manufacturing overhead applied 42,804 (d)117916 (i)64276.82

Total manufacturing costs 149,800 (e) 352916 216,100

Work in process 1/1/14 (b) 58,800 21,300 18,400

Total cost of work in process 208,600 (f) 374216 (j)234500

Work in process 12/31/14 (c) 15100 11,900 (k)1900

Cost of goods manufactured 193,500 (g) 326316 232,600

6 0

3 years ago

Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The cost of this machine was $315

Lady bird [3.3K]

Answer:

(a) Straight-line depreciation.

depreciation expense per year = ($315,900 - $15,900) / 4 = $75,000

(b) Activity method for 2014 and 2015, assuming that machine usage was 15,000 hours for 2014; 11,710 hours for 2015; 12,150 hours for 2016 and 1,140 hours for 2017.

depreciation expense per unit = $300,000 / 40,000 = $7.50 per unit

depreciation expense 2014 = $7.50 x 15,000 = $112,500

depreciation expense 2015 = $7.50 x 11,710 = $87,825

(c) Sum-of-the-years'-digits.

depreciation expense 2014 = $300,000 x 4/10 = $120,000

depreciation expense 2015 = $300,000 x 3/10 = $90,000

(d) Double-declining-balance.

depreciation expense 2014 = $315,900 x 2 x 1/4 = $157,950

depreciation expense 2015 = $157,950 x 2 x 1/4 = $78,975

depreciation expense 2016 = $78,975 x 2 x 1/4 = $39,487.50

depreciation expense 2017 = $39,487.50 - $15,900 = $23,587.50

6 0

3 years ago

Which of the following products probably accounted for by a company using a job order costing system? A) facial tissue B) Hershe

natka813 [3]

Answer: D) A custom built house

Explanation:

Job Order Costing determines the cost of each specific good instead of grouping them all together. When making goods that vary in type, this is the best type of costing method to use as it will take into account the unique cost objects used.

Custom built houses will require cost objects that are different from standadized houses. A specific design will have to be used, non standard material and the like will be used as well. This means that when computing cost, it will have to be specific to the needs of the custom house so it is most probable that Job Order Costing was used.

5 0

4 years ago