Answer:
Dynamic Weight Loss Co.
DYNAMIC WEIGHT LOSS CO.
Classified Balance Sheet as of June 30, 20Y7
Assets
Current Assets:
Cash $119,630
Accounts Receivable 26,100
Prepaid Insurance 8,400
Prepaid Rent 6,000
Supplies 11,200
Total current assets $171,330
Long-term Assets:
Land 375,000
Equipment 325,900
Accumulated Depreciation (32,600) 293,300
Total long-term assets $668,300
Total assets $839,630
Liabilities and Equity
Current Liabilities:
Accounts Payable $10,830
Salaries Payable 7,500
Unearned Fees 21,000
Total current liabilities $39,330
Equity:
Common Stock 180,000
Retained Earnings 620,300
Total equity $800,300
Total liabilities and equity $839,630
Explanation:
a) Data and Calculations:
Trial Balance as of June 30, 20Y7
Account Titles Debit Credit
Cash $119,630
Accounts Receivable 26,100
Prepaid Insurance 8,400
Prepaid Rent 6,000
Supplies 11,200
Land 375,000
Equipment 325,900
Accumulated Depreciation - Equipment $32,600
Accounts Payable 10,830
Salaries Payable 7,500
Unearned Fees 21,000
Common Stock 180,000
Retained Earnings 620,300
Total $872,230 $872,230
It is best to keep both a check register and then to reconcile your bank statement with your check register. That means you have recorded everything that has happened.
The solution for the problem follows:
Expense = variable expenses * quantity of produced + fixed
expenses
= 14q + 78,490
= 14 (3500) + 78, 490
= 49000 + 78,490
= $127, 490 is the total expense for 3,500 tennis rackets
Get the per piece expense by dividing 127,490 to 3500
Expense per piece = 127,490 / 3500
= $36.43
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THE PROGRAM MANAGER will approve the realignment. The program manager is able to approve this realignment because a reprogramming action is not required. If a reprogramming action is required, that meas the change will be substantial, in this case the program manager will not be qualified to approve the realignment.
Explanation:
The process cost shows the summary of the activities related to the production. It includes the cost of goods completed & transferred units and the ending work in process inventory.
So, the given statement is true
The indirect cost are come under the manufacturing overhead cost. So, it would be charged to overhead control account
Thus, the given statement is false.
The direct labor includes that labor which is directly related to the production process of a product. So the single production department is likely to be a direct labor
Thus, the given statement is true.
To record the allocation of overhead, the following journal entry is required
Work in Process Inventory, Baking Dept A/c Dr $24,500
To Factory overhead A/c $24,500
(Being the overhead allocation is recorded)
The computation is shown below:
= Direct labor cost × allocation rate
= $10,000 × 245%
= $24,500
Thus, the given statement is true.
