White Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced in the Milling Department. From the Milling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour.
The balance in the account Work in Process-Sifting Department was as follows on July 1:
| Work in Process-Sifting Department | |
| (1,000 units, 3/5 completed): | |
| Direct materials (1,000 × $2.15) | $2,150 |
| Conversion (1,000 × 3/5 × $0.40) | 240 |
| $2,390 | |
The following costs were charged to Work in Process-Sifting Department during July:
| Direct materials transferred from Milling Department: | |
| 16,700 units at $2.25 a unit | $37,575 |
| Direct labor | 4,540 |
| Factory overhead | 3,056 |
During July, 16,600 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,100 units, 4/5 completed.
| Required: | |
| 1. | Prepare a cost of production report for the Sifting Department for July. If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount. |
| 2. | Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting to Packaging. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Use the date July 31 for all journal entries. |
| 3. | Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. Round your answers to the nearest cent. |
| 4. | Discuss the uses of the cost of production report and the results of part (3). |
CHART OF ACCOUNTSWhite Diamond Flour CompanyGeneral Ledger
| ASSETS | |
| 110 | Cash |
| 121 | Accounts Receivable |
| 125 | Notes Receivable |
| 126 | Interest Receivable |
| 131 | Materials |
| 141 | Work in Process-Milling Department |
| 142 | Work in Process-Sifting Department |
| 143 | Work in Process-Packaging Department |
| 151 | Factory Overhead-Milling Department |
| 152 | Factory Overhead-Sifting Department |
| 153 | Factory Overhead-Packaging Department |
| 161 | Finished Goods |
| 171 | Supplies |
| 172 | Prepaid Insurance |
| 173 | Prepaid Expenses |
| 181 | Land |
| 191 | Factory |
| 192 | Accumulated Depreciation-Factory |
| LIABILITIES | |
| 210 | Accounts Payable |
| 221 | Utilities Payable |
| 231 | Notes Payable |
| 236 | Interest Payable |
| 251 | Wages Payable |
| EQUITY | |
| 311 | Common Stock |
| 340 | Retained Earnings |
| 351 | Dividends |
| 390 | Income Summary |
| REVENUE | |
| 410 | Sales |
| 610 | Interest Revenue |
| EXPENSES | |
| 510 | Cost of Goods Sold |
| 520 | Wages Expense |
| 531 | Selling Expenses |
| 532 | Insurance Expense |
| 533 | Utilities Expense |
| 534 | Supplies Expense |
| 540 | Administrative Expenses |
| 561 | Depreciation Expense-Factory |
| 590 | Miscellaneous Expense |
| 710 | Interest Expense |
1. Prepare a cost of production report for the Sifting Department for July. If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount.
| WHITE DIAMOND FLOUR COMPANY | |||
| Cost of Production Report-Sifting Department | |||
| For the Month Ended July 31 | |||
| UNITS | Whole Units | Equivalent Units | |
| Direct Materials | Conversion | ||
| Units charged to production: | |||
| Inventory in process, July 1 | |||
| Received from Milling Department | |||
| Total units accounted for by the Sifting Department | |||
| Units to be assigned costs: | |||
| Inventory in process, July 1 (3/5 completed) | |||
| Started and completed in July | |||
| Transferred to Packaging Department in July | |||
| Inventory in process, July 31 (4/5 completed) | |||
| Total units to be assigned costs | |||
| COSTS | Costs | ||
| Direct Materials | Conversion | Total | |
| Cost per equivalent unit: | |||
| Total costs for July in Sifting Department | |||
| Total equivalent units | ÷ | ÷ | |
| Cost per equivalent unit | |||
| Costs assigned to production: | |||
| Inventory in process, July 1 | |||
| Costs incurred in July | |||
| Total costs accounted for by the Sifting Department | |||
| Costs allocated to completed and partially completed units: | |||
| Inventory in process, July 1-balance | |||
| To complete inventory in process, July 1 | |||
| Cost of completed July 1 work in process | |||
| Started and completed in July | |||
| Transferred to Packaging Department in July | |||
| Inventory in process, July 31 | |||
| Total costs assigned by the Sifting Department | |||
2. Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting to Packaging. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Use the date July 31 for all journal entries.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
|
1 |
||||||||
|
2 |
||||||||
|
3 |
||||||||
|
4 |
3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. Round your answers to the nearest cent.
| Direct materials: | |
| Conversion: |
4. Discuss the uses of the cost of production report and the results of part (3).
The cost of production report may be used as the basis for allocating product costs between and . The report can also be used to control costs by holding each department head responsible for the units entering production and the costs incurred in the department. Any differences in unit product costs from one month to another, such as those in part (3), can be studied carefully and any significant differences investigated.
In: Accounting
Lana purchased for $1,410 a $2,000 bond when it was issued two
years ago. Lana amortized $200 of the original
issue discount and then sold the bond for $1,800. Which of the
following statements is correct?
| a. Lana has $10 of long-term capital loss. |
| b. Lana has $190 of long-term capital gain. |
| c. Lana has no capital gain or loss. |
| d. Lana has $190 of long-term capital loss. |
Ryan has the following capital gains and losses for 2018: $6,000
STCL, $5,000 28% gain, $2,000 25% gain, and
$6,000 0%/15%/20% gain. Which of the following is correct:
| a. The net capital gain is composed of $1,000 25% gain and $6,000 0%/15%/20% gain. |
| b. The net capital gain is composed of $5,000 28% gain and $2,000 0%/15%/20% gain. |
| c. The net capital gain is composed of $3,000 28% gain, $2,000 25% gain, and $2,000 0%/15%/20% gain. |
| d. The net capital gain is composed of $1,000 28% gain and $6,000 0%/15%/20% gain. |
In 2018, Satesh has $5,000 short-term capital loss, $13,000
0%/15%/20% long-term capital gain, and $7,000 qualified
dividend income. Satesh is single and has other taxable income of
$15,000. Which of the following statements is
correct?
| a. No more than $13,000 of Satesh’s taxable income is taxed at 0%. |
| b. No more than $7,000 of Satesh’s taxable income is taxed at 0%. |
| c. No more than $15,000 of Satesh’s taxable income is taxed at 0%. |
| d. None of Satesh’s taxable income is taxed at 0%. |
Blue Company sold machinery for $45,000 on December 23, 2018.
The machinery had been acquired on April 1,
2016, for $69,000 and its adjusted basis was $34,200. The § 1231
gain, § 1245 recapture gain, and § 1231 loss from
this transaction are:
| a. $0 § 1231 gain, $10,800 § 1245 recapture gain, $0 § 1231 loss. |
| b. $0 § 1231 gain, $0 § 1245 recapture gain, $14,800 § 1231 loss. |
| c. $0 § 1231 gain, $34,200 § 1245 recapture gain, $0 § 1231 loss. |
| d. $0 § 1231 gain, $10,800 § 1245 recapture gain, $34,200 § 1231 loss. |
In: Accounting
Question a)
Louis is worried about how much tax he will have to pay this year and he is looking for anything that he might have missed that will decrease his Taxable Income. All of the following could decrease his Taxable Income, with the exception of:
|
a credit for a charitable donation. |
|
|
a deduction for contributions to an RPP. |
|
|
application of a non capital loss carryforward. |
|
|
application of a net capital loss carryforward. |
Question b)
With respect to charitable donations claimed by an individual:
|
there are no income limits on the amount claimed for donations of Crown gifts. |
|
|
the donations made in a particular year must be claimed in that year if there is sufficient taxes payable. |
|
|
unused charitable donations may be carried back 3 year and carried forward 5 years. |
|
|
the limit on eligible amounts claimed in any given year is always limited to 75% of net income for tax purposes. |
Question c)
Net capital losses may be applied against any type of income in the year of death or the immediately preceding year.
| True | |
| False |
In: Accounting
.Journal Entries for Purchases and Cash Payments: Note: One way to meet the 250-word minimum requirement for your primary post is to define the new terms that you are using. Review the preparation of journal entries in the Demonstration problem on pp. 418-421 and the demonstration video in the Unit 5 Resources explaining the preparation of journal entries for purchase transactions. Once you understand how these journal entries are prepared, please select one transaction from Problem 11-11B, on page 433 of the text, for Debbie's Doll House, and answer the questions below for that transaction. There are 12 journal entries in this problem, but each of you must select an entry that has not been completed by a classmate! If all of the journal entries have been prepared select an entry from the Chapter 10 discussion question. First come, first served! Please be sure to identify your entry by the date of the transaction and provide your response in your own words. Remember, the primary posting is a short answer essay that fully explains your responses. What happened? (Describe the transaction) Which accounts are affected by this transaction? Are they increased or decreased? What is the normal balance of each of these accounts? Which accounts are debited and by what amount? Explain how you arrived at that amount. Which accounts are credited and by what amount? Explain how you arrived at that amount.
PURCHASES AND CASH PAYMENTS TRANSACTIONS Debbie Mueller owns a small retail business called Debbie’s Doll House. The cash account has a balance of $20,000 on July 1. The following transactions occurred during July:
|
July |
1 |
Issued Check No. 314 for July rent, $1,400. |
|
1 |
Purchased merchandise on account from Topper’s Toys, Invoice No. 211, $2,500, terms 2/10, n/30. |
|
|
3 |
Purchased merchandise on account from Jones & Company, Invoice No. 812, $2,800, terms 1/10, n/30. |
|
|
5 |
Returned merchandise purchased from Topper’s Toys receiving a credit memo on the amount owed, $400. |
|
|
8 |
Purchased merchandise on account from Downtown Merchants, Invoice No. 159, $1,600, terms 2/10, n/30. |
|
|
11 |
Issued Check No. 315 to Topper’s Toys for merchandise purchased on account, less return of July 5 and less 2% discount. |
|
|
13 |
Issued Check No. 316 to Jones & Company for merchandise purchased on account, less 1% discount. |
|
|
15 |
Returned merchandise purchased from Downtown Merchants receiving a credit memo on the amount owed, $600. |
|
|
18 |
Issued Check No. 317 to Downtown Merchants for merchandise purchased on account, less return of July 15 and less 2% discount. |
|
|
25 |
Purchased merchandise on account from Columbia Products, Invoice No. 468, $3,200, terms n/30. |
|
|
26 |
Purchased merchandise on account from Topper’s Toys, Invoice No. 395, $1,430, terms 2/10, n/30. |
|
|
29 |
Purchased merchandise on account from Jones & Company, Invoice No. 853, $2,970, terms 1/10, n/30. |
In: Accounting
The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company:
| Jan. 13. | Sold merchandise on account to Black Tie Co., $40,800. The cost of goods sold was $24,480. | |
| Mar. 10. | Accepted a 60-day, 6% note for $40,800 from Black Tie Co. on account. | |
| May 9. | Received from Black Tie Co. the amount due on the note of March 10. | |
| June 10. | Sold merchandise on account, terms 2/10, n/30, to Holen for $12,700. Record the sale net of the discount. The cost of goods sold was $7,620. | |
| 15. | Loaned $24,000 cash to Pioneer Co., receiving a 30-day, 8% note. | |
| 20. | Received from Holen the amount due on the invoice of June 10, less 2% discount. | |
| July 15. | Received the interest due from Pioneer Co. and a new 60-day, 9% note as a renewal of the loan of June 15. (Record both the debit and the credit to the notes receivable account.) | |
| Sept. 13. | Received from Pioneer Co. the amount due on its note of July 15. | |
| 13. | Sold merchandise on account toWycoff Co., $60,000. The cost of goods sold was $36,000. | |
| Oct. 12. | Accepted a 60-day, 6% note for $60,000 from Wycoff Co. on account. | |
| Dec. 11. | Wycoff Co. dishonored the note dated October 12. | |
| 26. | Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 15 days at 12% computed on the maturity value of the note. |
Required:
Journalize the entries to record the transactions. Assume 360 days in a year. For a compound entry, if an amount box does not require an entry, leave it blank. Assume this is a year in which February has 28 days.
| Jan. 13-sale | |||
| Jan. 13-cost | |||
| Mar. 10 | |||
| May 9 | |||
| June 10-sale | |||
| June 10-cost | |||
| June 15 | |||
| June 20 | |||
| July 15 | |||
| Sept. 13- note | |||
| Sept. 13-sale | |||
| Sept. 13-cost | |||
| Oct. 12 | |||
| Dec. 11 | |||
| Dec. 26 | |||
In: Accounting
Missy, age 30, has owned her principal residence (adjusted basis of $225,000) for five years. During the first three years of ownership, she occupied it as her principal residence. During the past two years, she was in graduate school and rented the residence. After graduate school, Missy returned to the same location where she previously worked. At this point, she purchased another residence for $400,000 and listed her old residence for sale at $340,000. Due to a slow real estate market, 11 months later Missy finally receives an offer of $330,000.
explain the answer.
In: Accounting
Provide real-world examples of the four types of specialized investment, use any resources you can obtain
1. Site specificity
2. Physical-asset specificity
3. Dedicated assets
4. Human capital
In: Accounting
Nell sells a passive activity with an adjusted basis of $45,000
for $105,000. Suspended losses attributable to this
property total $45,000. The total gain and the taxable gain
are:
| a. | $60,000 total gain; $105,000 taxable gain |
| b. | $10,000 total gain; $15,000 taxable gain |
| c. | $60,000 total gain; $0 taxable gain |
|
d. $60,000 total gain; $15,000 taxable gain. Tess owns a building in which she rents apartments to tenants
and operates a restaurant. Which of the following
|
In: Accounting
Instructions:
Your two responses to other posts should each be approximately 250 words and cause the original writer (and other students) to think deeper about that scenario and the ethical and integrity issues discussed. You should, again, use the list of ethical dimensions below as focus areas for your responses. Responses are not comments on the author's writing ("Good post, it really made me think." or "I wouldn't have done that because it's not right.") The due date for these two responses (and hopefully your replies to other student responses to your posts) is March 1 (the Part 2 due date). This is the due date that will show in eCourseware’s calendar.
Responses to this:
I would report the shady, dangerous work. How I would go about doing it is making sure that I have all the evidence that I need to prove that the other company is doing some shady, dangerous work then report it to the proper authorities. The reason that I would want to report the problem is because of the possible legal trouble that all of the companies involved in the project could face and I wouldn’t want my company to be seen as responsible or a contributor to the problem. Even if you don’t report the problem and you were involved in the project where the issue came from, you could possibly face some or even the same penalties that the company doing wrong will face. Its more trouble than its worth to not report the problem and not prevent anything else bad from happening as soon as you can. To take care of the legal issues that come with being involved could, and possibly can, cost more than 20% of your revenue that you can lose by reporting the problem. Based off of that assumption it’s better to just report the issue as early as you can to minimize the negative affects it can have on the project or your company itself. Why that was my decision is because of the safety for the business, our customers, employees, and anyone else that can be affected by the dangerous work. Peoples safety, whether that be my own employees, our customers, etc., is a top priority.
The decision of reporting the problem is still a good decision in my opinion (regardless of people’s sex, race, skin color, native language, monetary outcome, etc.) because it stops a problem that can do more harm than good. I feel that when one person’s sense of correct ethical behavior overrules another person’s ethical behavior is when people’s safety, well-being, and company reputation is at risk. One person’s views are going to be very different (or even the opposite) of the next persons. In some cases, what may seem “correct” or “ethical” to some is actually harmful and dangerous to those that the issue affects. If you and your company are more worried about making sure that the products sell instead of the safety of said products and safety of your employees what does that say about your ethics and values? This can create a bad reputation for the company and result in loss of revenue among other issues. Above all human safety and doing the right thing should be a top priority for all companies. My personal sense of right and good for others can be an accurate yardstick. But as I mentioned earlier what you may think is right for everyone may not be the case or others may see it as the opposite of what you want it to be. When it can be an accurate yardstick is when the outcome of my views of right and good for others has a major positive impact or at least leads whatever the case may be in the right direction to create some good.
In: Accounting
Peerless Corporation acquires 80 percent of the common stock of Special Foods Co. Inc. on December 31, 20X0, for its underlying book value of $240,000.
At that date, the fair value of the noncontrolling interest is equal to its book value of $60,000.
Additionally:
1. On January 1, 20X1, Special Foods Co. (the sub) issues 10-year, 12 percent bonds payable with a par value of $100,000; the bonds are issued at 102. Nonaffiliated Corporation purchases the bonds from Special Foods Co.
2. The bonds pay interest on June 30 and December 31.
3. Both Peerless and Special Foods amortize bond discount and premium using the straight-line method.
4. On December 31, 20X1, Peerless (the parent) purchases the bonds from Nonaffiliated for $91,000.
5. Special Foods Co. reports net income of $50,000 for 20X1 and $75,000 for 20X2 and declares dividends of $30,000 in 20X1 and $40,000 in 20X2.
6. Peerless earns $140,000 in 20X1 and $160,000 in 20X2 from its own separate operations. Peerless declares dividends of $60,000 in both 20X1 and 20X2.
Prepare the journal entries for Special Foods (the debtor) related to the bonds during 2011.
Prepare the journal entries for Peerless (the lender) related to its bond investment in 2011.
Prepare the journal entries for Peerless (the lender) to account for its stock investment in 2011, under the fully adjusted equity method.
Prepare the worksheet elimination entries needed on December 31, 2011, to remove the effects of the intercorporate ownership of bonds.
Prepare the journal entries for Special Foods (the debtor) related to the bonds during 2012.
Prepare the journal entries for Peerless (the lender) related to its bond investment in 2012.
Prepare the journal entries for Peerless (the lender) to account for its stock investment in 2012, under the fully adjusted equity method.
Prepare the worksheet elimination entries needed on December 31, 2012, to remove the effects of the intercorporate ownership of bonds.
In: Accounting
Far Play Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labour cost in Department A, direct labour hours in Department B, and machine hours in Department C.
In establishing the predetermined overhead rates for 2017, the following estimates were made for the year.
|
Department |
|||
|
A |
B |
C | |
|
Manufacturing Overhead |
$720,000 |
$620,000 |
$910,000 |
|
Direct labour Cost |
$590,000 |
$125,000 |
$620,000 |
|
Direct labour Hours |
47,500 |
41,500 |
40,000 |
|
Machine Hours |
91,000 |
107,000 |
128,500 |
During January, the job cost sheets showed the following costs and production data.
|
Department |
|||
|
A |
B |
C |
|
|
Direct Materials Used |
$92,500 |
$82,000 |
$66,000 |
|
Direct Labour Cost |
$54,500 |
$33,000 |
$48,500 |
|
Manufacturing Overhead Incurred |
$63,500 |
$69,500 |
$72,500 |
|
Direct Labour Hours |
3,500 |
4,400 |
4,400 |
|
Machine Hours |
7,250 |
10,750 |
14,500 |
Required:
Calculate the predetermined overhead rate for each department
Calculate the total manufacturing costs assigned to jobs in January in each department.
Calculate the under-or over-applied overhead for each department at January 31st.
In: Accounting
The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31:
| Jan. 19. | Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalize the receipt of $2,130 cash in full payment of Arlene’s account. |
| Apr. 3. | Wrote off the $12,200 balance owed by Premier GS Co., which is bankrupt. |
| July 16. | Received 40% of the $21,900 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. |
| Nov. 23. | Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,470 cash in full payment. |
| Dec. 31. | Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $9,180 ; Fogle Co., $2,725 ; Lake Furniture, $ 7,010 ; Melinda Shryer, $1,980. |
| Dec. 31. | Based on an analysis of the $1,078,700 of accounts receivable, it was estimated that $46,900 will be uncollectible. Journalize the adjusting entry. |
Required:
1. Record the January 1 credit balance of $44,700 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts.
2. a. Journalize the transactions. If an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, assume the $1,078,700 balance in accounts receivable reflects the adjustments made during the year.
| Jan. 19-reinstate | |||
| Jan. 19-collection | |||
| Apr. 3 | |||
| July 16 | |||
| Nov. 23-reinstate | |||
| Nov. 23-collection | |||
| Dec. 31-write-off | |||
| Dec. 31-adjusting | |||
2. b. Post each entry that affects the following T accounts and determine the new balances:
| Allowance for Doubtful Accounts | |||
|---|---|---|---|
| Jan. 1 Balance | |||
| Dec. 31 Adjusted Balance | |||
| Bad Debt Expense | |||
|---|---|---|---|
3. Determine the expected net realizable value
of the accounts receivable as of December 31 (after all of the
adjustments and the adjusting entry).
$
4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of ½ of 1% of the sales of $6,660,000 for the year, determine the following:
a. Bad debt expense for the year.
$
b. Balance in the allowance account after the adjustment of
December 31.
$
c. Expected net realizable value of the accounts receivable as
of December 31 (after all of the adjustments and the adjusting
entry).
$
In: Accounting
Topic = Sales promotion defination (100 words ) explain (150 words ) and give two examples ( eg. how it works , steps involved use and limitations and specific products organisations or issues and etc ) around 150 words plagiarism free
In: Accounting
what does a recommendations worksheet look like in a Master Budget created in Excel? I have already created the Assumptions tab, Sales Budget, Collections, Production Budget tabs and now need to provide my impressions and recommendations based on that information. I'm looking for an example of layout and type of content to include in that.
In: Accounting
PLEASE ANSWER IN A 500 WORD RESPONSE!
If you were the controller CFO, or VP of finance at a larger organization, what actions would you take as a result of the changing lease standards?
In: Accounting