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3 years ago

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020.

Business

1 answer:

nasty-shy [4]3 years ago

7 0

Answer:

Clarkson Company

Income statement for the year ended June 30, 2020

Sales Revenue $555,000

Less Costs of Goods Sold :

Opening Finished Goods Inventory $96,100

Add Cost of Goods Manufactured $390,520

Less Closing Finished Goods Inventory ($19,900) ($466,720)

Gross Profit $83,280

Explanation:

First prepare a Schedule of Manufacturing Costs to determine the Cost of Goods Manufactured.

Schedule of Manufacturing Costs

Factory Insurance $4,700

Raw Materials ($48,100 + $96,500 - $39,700) $104,900

Factory Machinery Depreciation $16,100

Factory Utilities $28,700

Direct Labor $139,350

Plant Manager’s Salary $61,100

Indirect Labor $24,560

Factory Property Taxes $9,610

Factory Repairs $1,500

Add Opening Work In Process Inventory $19,900

Less Closing Work In Process Inventory ($19,900)

Cost of Goods Manufactured $390,520

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Answer:

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Explanation:

When the uncollectible accounts are written off, then the debit is created to the allowance and the credit to the accounts receivable. The starting balance in the allowance account is $90,000 and the ending balance is $100,000 and the expense of bad debt is $16,000

The write off is computed as:

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3 years ago

If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth i

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3 years ago

Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the u

stich3 [128]

Answer:

$30.39 per machine hour

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The first step is to calculate the the predetermined overhead rate

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3 years ago

Insurance can help you:

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2 years ago

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Chris has been offered a seven-year bond (face value $1,000) issued by Bayley Ltd at a price of $943.22. The bond has a coupon r

ZanzabumX [31]

Answer:

As the actual price of such bonds should be $950.51 and the bonds are offered at a lower price, the bonds should be bought at the offered price.

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To determine whether the bonds should be bought at the given price or not, we first need to calculate the price of the bond. The formula for the price of the bond is attached.

The interest payed by the bonds can be treated as an annuity.

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Bond Price = 950.5068 rounded off to $950.51

As the actual price of such bonds should be $950.51 and they are offered at a lower price, the bonds should be bought at the offered price.

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2 years ago