Trace a evolution of money

The following items were selected from among the transactions completed by O’Donnel Co. during the current year: Jan. 10. Purchased merchandise on account from Laine Co., $366,000, terms n/30. Feb. 9. Issued a 30-day, 6% note for $366,000 to Laine Co., on account. Mar. 11. Paid Laine Co. the amount owed on the note of February 9. May 1. Borrowed $198,000 from Tabata Bank, issuing a 45-day, 8% note. June 1. Purchased tools by issuing a $270,000, 60-day note to Gibala Co., which discounted the note at the rate of 6%. 15. Paid Tabata Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 6.5% note for $198,000. (Journalize both the debit and credit to the notes payable account.) July 30. Paid Tabata Bank the amount due on the note of June 15. 30. Paid Gibala Co. the amount due on the note of June 1. Dec. 1. Purchased office equipment from Warick Co. for $400,000, paying $108,000 and issuing a series of ten 8% notes for $29,200 each, coming due at 30-day intervals. 15. Settled a product liability lawsuit with a customer for 320,000, payable in January. O’Donnel accrued the loss in a litigation claims payable account. 31. Paid the amount due Warick Co. on the first note in the series issued on December 1. Required: 1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar. 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: A. Product warranty cost, $29,000. B. Interest on the nine remaining notes owed to Warick Co. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar. 1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Scroll down to access page 12 of the journal. Round your answers to the nearest dollar. How does grading work? PAGE 11 JOURNALACCOUNTING EQUATION Score: 316/360 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 ✔ ✔ ✔ 2 ✔ ✔ 3 ✔ ✔ ✔ 4 ✔ ✔ 5 ✔ ✔ ✔ 6 ✔ ✔ 7 ✔ ✔ 8 ✔ ✔ ✔ 9 ✔ ✔ 10 ✔ ✔ ✔ 11 ✔ ✔ 12 ✔ ✔ 13 ✔ ✔ ✔ 14 ✔ ✔ 15 ✔ ✔ 16 ✔ ✔ 17 ✔ ✔ ✔ 18 ✔ ✔ 19 ✔ ✔ 20 ✔ ✔ 21 ✔ 22 ✔ ✔ 23 ✔ 24 ✔ 25 ✔ ✔ 26 ✔ 27 ✔ ✔ 28 ✔ 29 ✔ Points: 60.57 / 69 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles): A. Product warranty cost, $29,000. B. Interest on the nine remaining notes owed to Warick Co. Assume a 360-day year. How does grading work? PAGE 12 JOURNALACCOUNTING EQUATION Score: 28/51 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 ✔ 3 ✔ 4 ✔ 5 ✔ Points: 5.49 / 10 Feedback Check My Work If you were the borrower how much would you be leaving with in proceeds? What does the liability always have to be recorded at? As the lender what have you earned by doing business with O’Donnel Co.? As the lender what will you be receiving on the maturity date?

Creative Ideas Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows.

Capital- Intensive:

Direct materials $5 per unit

Direct labor $6 per unit

Variable overhead $3 per unit

Fixed manufacturing costs $2,524,000

Labor- Intensive:

Direct materials $5.50 per unit

Direct labor $8.00 per unit

Variable overhead $4.50 per unit

Fixed manufacturing costs $1,550,000.

Creative Ideas’ market research department has recommended an introductory unit sales price of $32. The incremental selling expenses are estimated to be $502,000 annually plus $2 for each unit sold, regardless of manufacturing method. Assume that the annual unit sales volume at which Creative Ideas would be indifferent between the two manufacturing models is 243,500 units. Explain the circumstance under which Creative Ideas should employ each of the two manufacturing methods.

Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $11,000 available each year for various school and living expenses. Use Exhibit 1-D.

If he earns 5 percent on his money, how much must he deposit at the start of his studies to be able to withdraw $11,000 a year for three years? (Round PVA factor to 3 decimal places and final answer to the nearest whole dollar.)

Understand you can only answer 1 question, but I guarantee a thumps up if you give the extra effort.

Question refers to this data

Variable production costs         $480,000

Variable S and A costs              $55,000

Fixed S and A costs                  $100,000

Fixed production costs              $270,000

Unit sales price                         $           8

production in units                    $120,000

Sales in units                            110,000

Under full costing, the value of the ending inventory is:

A. $80,000

B. 62,500

C. $40,000

D. $210,000

Under variable costing, the cost per unit is

A. $2.25

B. $6.25

C. $4.36

D $210,000

under full costing, net income (loss) is:

A. $37,500

B. $15,000

C $(25,000)

D. none of the above

under variable costing, the contribution margin is:

A. 192,000

B. 345,000

c. 385,000

D. 400,000

Under full costing, the amount of deferred overhead is

A. $0

B. $22, 500

C $270,000

D. None of the above

Question refers to this data

Unit sales price            $20

Variable production cost per unit        $8

Variable S and A cost per unit            $2

Fixed overhead cost                           $150,000

Fixed selling and admin, cost             $200,000

Units produced                                   $50,000

Units sold                                            $48,000

Using full costing, the cost per unit is

A. $8

B. $11

C. $12

D. $9.05

Using variable costing, the cost of the ending inventory is:

A. $40,000

b. $22,000

C. $16,000

D. $24,000

Using variable costing, the contribution margin is

A. $576,000

B. 432,000

C. $336,000

d. $480,000

Using full costing, the gross margin is

A. $576,000

B. 432,000

C.336,000

D. $480,000

Total period costs under variable costing are

A. $350,000

B. $296,000

C.$446,000

D.$200,000

Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $204,000 and that Greene is to invest $68,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: Equal division. In the ratio of original investments. In the ratio of time devoted to the business. Interest of 5% on original investments and the remainder equally Interest of 5% on original investments, salary allowances of $40,000 to Morrison and $80,000 to Greene, and the remainder equally Plan (e), except that Greene is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $118,000 and (2) net income of $210,000. Round answers to the nearest whole dollar.

Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently, the company is operating at 85 percent of capacity. A chain of drugstores has offered to buy 31,000 boxes of Sequoia’s blue-bordered thank-you notes as long as the box can be customized with the drugstore chain’s logo. While the normal selling price is $6.90 per box, the chain has offered just $2.90 per box. Sequoia can accommodate the special order without affecting current sales. Unit cost information for a box of thank-you notes follows:

Fixed overhead is $405,000 per year and will not be affected by the special order. Normally, there is a commission of 9 percent of price; this will not be paid on the special order since the drugstore chain is dealing directly with the company. The special order will require additional fixed costs of $15,700 for the design and setup of the machinery to stamp the drugstore chain’s logo on each box.

Required:

1. Which alternative is more cost effective and by how much?

The operating income would increase by $fill in the blank 2.

2. What if Sequoia Paper Products was operating at capacity and accepting the special order would require rejecting an equivalent number of boxes sold to existing customers? Which alternative would be better?  

Cherokee Inc. is a merchandiser that provided the following information:

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows:

* $3 per unit variable; $247,000 fixed each year.

The company’s $40 unit product cost is computed as follows:

Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.

Production and cost data for the first two years of operatons are:

Required:

1. Using variable costing, what is the unit product cost for both years?

2. What is the variable costing net operating income in Year 1 and in Year 2?

3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:

Overhead is applied to production on the basis of direct labor-hours. During March, 570 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:

*For the month's production.

The following additional information is available for March’s production:

Required:

Hint: It may be helpful to complete a general model diagram for direct materials, direct labor, and variable manufacturing overhead before attempting to answer any of the requirements.

5. What is the standard direct labor rate per hour?

6. What was the labor rate variance for March? The labor efficiency variance?

7. What was the variable overhead rate variance for March? The variable overhead efficiency variance?

8. Prepare a standard cost card for one backpack.

Lindon company is the exclusive distributor for an automotive product that sells for $38 per unit and has a cm ratio of 30%. the company's fixed expenses are $180,000 per year. the company plans to sell 16,000 units this year.

required:

1. what are the variable expenses per unit?

2. using the equation method;

a. what is the break-even point in unit sales and in dollar sales?

b. what sales level in unit and dollar is required to earn an annual profit of $50,000?

4. assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3 per unit. what is the company's new break-even point in unit sales and in dollar sales?

Taylored T’s is a sole proprietorship owned and operated by Taylor Breckitt. TT’s takes plain t-shirts and prints or sews logos and designs for customers. Taylor is required to file financial statements with his bank each month in order to keep their credit line open. TT’s reported the following results for March:

The bank is especially concerned about the Working Capital ratio, so they want to be sure that TT is reporting their assets fairly.

What was TT’s Ending Work in Process Inventory for the period?

Select one or more:

a. $38,880

b. $154,850

c. $94,205

d. $75,650