(Just need the answer, thank you.)

FIFO and LIFO Costs Under Perpetual Inventory System

The following units of an item were available for sale during the year:

The firm uses the perpetual inventory system, and there are 51 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?

b. What is the total cost of the ending inventory according to LIFO?

Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A's production is much more labor-intensive than that of Model B. Model B is also the more popular of the two speakers. The following data has been gathered for the two products:

Plantwide Rate

1. Compute the overhead cost per unit for each product by using a plantwide rate based on direct labor hours. (Round to two decimal places.)

Plantwide rate:  per DLH

Activity Rates

2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.)

Note: Be sure to complete both tables below.

Departmental Rates

3. Suppose that Ramsey decides to use departmental overhead rates. There are two departments: Department 1: (machine intensive) with a rate of $3.50 per machine hour and Department 2: (labor intensive) with a rate of $0.90 per direct labor hour. The consumption of these two drivers is as follows:

Compute the overhead cost per unit for each product by using departmental rates. (Round to two decimal places.)

Sharp Motor Company has two operating divisions—an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $76,000 per month plus $0.50 per meal served. The company pays all the cost of the meals.

The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 71% of the peak-period requirements, and the Truck Division is responsible for the other 29%.

For June, the Auto Division estimated it would need 86,000 meals served, and the Truck Division estimated it would need 56,000 meals served. However, due to unexpected layoffs of employees during the month, only 56,000 meals were served to the Auto Division. Another 56,000 meals were served to the Truck Division as planned.

Cost records in the cafeteria show that actual fixed costs for June totaled $85,000 and actual meal costs totaled $76,000.

Required:

1. How much cafeteria cost should be charged to each division for June?

2. Assume the company follows the practice of allocating all cafeteria costs incurred each month to the divisions in proportion to the number of meals served to each division during the month. On this basis, how much cost would be allocated to each division for June? (Round your intermediate calculations to 2 decimal places.)

Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $130,200 of manufacturing overhead for an estimated allocation base of $93,000 direct material dollars to be used in production. The company has provided the following data for the just completed year:

Required:

1. Compute the predetermined overhead rate for the year.

2. Compute the amount of underapplied or overapplied overhead for the year.

3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials.

4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer.

5. Assume that the $38,000 ending balance in Work in Process includes $8,500 of direct materials. Given this assumption, supply the information missing below:

Direct Materials

Direct Labor

Manufacturing Overhead

Work in Process Inventory

1.

Khorab Ltd manufactures chocolate candy. The company's management accounts are drawn up on a monthly basis as per the financial manager's (FM) recommendation. Ms Nghitewa, who is the company;s FM provided the following information in respect of January 2019:

$

Purchases(direct and indirect material) 460 000

Office salaries 45 000

freight on sale 1 2 000

Rent 30 000

Freight on purchases 8 000

Property rates and taxes 55 000

Insurance 20 000

Depreciation 55 000

Balances on 1 January 2019:

Raw material 35 000

Work-in-progress 106 000

Finished goods ( 7000 kg) 136 500

Balances on 31 January 2019:

Raw materials 42 000

Work-in-progress 90 000

Finished goods (2000 kg) 40 400

Additional information

1. The payroll of the factory workers for January 20019 is as follows:

Manufacturing staff are paid at $ 40 per hour. Overtime is paid at 1.5 times the normal rate. Khorab Ltd contributes 150% for all employees to the pension fund and in equal to the medical fund. Leave is provided for at $ 12 000 per month.

2. The manufacturing overhead is allocated on the basis of direct labour hours. Budgeted manufacturing overhead amounted to $ 252 000 while budgeted direct labour hours amounted to 6 000 for the month under review.

3. The rental expenses include rent for both the factory and administration buildings. The factory;s rent expenses is double the rental of the administrative buildings.

4. All completed chocolates sweets are painted different colours. The paints is only indirect materials used in the manufacturing process. The factory's records show that 500 litres of paint were used during the month. The cost of the paint is $ 82 per litre.

5. Property rates and taxes are only charged on the factory premises.

6. The following breakdown of the insurance was obtained from the insurance schedule:

Factory 40%

Office building 30%

Shop 30%

7. Depreciation expense consists of the following:

Factory equipment $ 34 000

Office equipment $ 16 000

Shop equipment $ 5 000

8. The company produced 50 000 kg of chocolate candy in January 2019( probably you meant January). The current selling price of chocolate is $ 46 per kg.

Required:

Prepare a schedule of cost of goods sold manufactured and sold for Khorab Ltd for January 2019. Khorab Ltd closes off all over-or under -allocated manufacturing overhead to cost of goods sold at the end of each month.

Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30). Apr. 2 Purchased $14,300 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60. 3 Sold merchandise on credit to Page Alistair, Invoice No. 760, for $4,000 (cost is $3,000). 3 Purchased $1,480 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM. 4 Issued Check No. 587 to World View for advertising expense, $899. 5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $8,000 (cost is $6,500). 6 Received an $80 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3. 9 Purchased $12,125 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM. 11 Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $10,500 (cost is $7,000). 12 Issued Check No. 588 to Noth Company in payment of its April 2 invoice less the discount. 13 Received payment from Page Alistair for the April 3 sale less the discount. 13 Sold $5,100 of merchandise on credit to Page Alistair (cost is $3,600), Invoice No. 763. 14 Received payment from Paula Kohr for the April 5 sale less the discount. 16 Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $10,750. Cashed the check and paid employees. 16 Cash sales for the first half of the month are $52,840 (cost is $35,880). 17 Purchased $13,750 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30. 18 Borrowed $60,000 cash from First State Bank by signing a long-term note payable. 20 Received payment from Nic Nelson for the April 11 sale less the discount. 20 Purchased $830 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM. 23 Received a $750 credit memorandum from Grant Company for the return of defective merchandise received on April 17. 23 Received payment from Page Alistair for the April 13 sale less the discount. 25 Purchased $11,375 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60. 26 Issued Check No. 590 to Grant Company in payment of its April 17 invoice less the return and the discount. 27 Sold $3,170 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,520). 27 Sold $6,700 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,305). 30 Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $10,750. 30 Cash sales for the last half of the month are $73,975 (cost is $58,900).

What are the solutions for Sales Journal?

Lamonda Corp. uses a job order cost system. On April 1, the accounts had balances as shown in the T-accounts below:

The following transactions occurred during April:

(a) Purchased materials on account at a cost of $233,470.
(b) Requisitioned materials at a cost of $112,200, of which $16,000 was for general factory use.
(c) Recorded factory labor of $223,700, of which $42,075 was indirect.
(d) Incurred other costs:

(e) Applied overhead at a rate equal to 127 percent of direct labor cost.
(f) Completed jobs costing $262,550.
(g) Sold jobs costing $322,670.
(h) Recorded sales revenue of $505,000.

Required:
1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Round your answers to 2 decimal places.)

3-a. Compute over- or underapplied manufacturing overhead. (Round your answer to 2 decimal places.)

3-b. If the balance in the Manufacturing Overhead account is closed directly to Cost of Goods Sold, will Cost of Goods Sold increase or decrease?

4. Prepare Lamonda’s cost of goods manufactured report for April. (Round your answers to 2 decimal places.)

5. Prepare Lamonda’s April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead. (Round your answers to 2 decimal places.)

Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Round your answers to 2 decimal places.)

Prepare Lamonda’s cost of goods manufactured report for April. (Round your answers to 2 decimal places.)

Prepare Lamonda’s April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead. (Round your answers to 2 decimal places.)

42. The partnership agreement for Wilson, Pickett & Nelson, a general partnership, provided that profits be shared between the partners in the ratio of their financial contributions to the partnership. Wilson contributed $90,000, Pickett contributed $54,000 and Nelson contributed $18,000. In the partnership's first year of operation, it incurred a loss of $207,000. What amount of the partnership's loss, rounded to the nearest dollar, should be absorbed by Nelson?

46. Halverstein Company's outstanding stock consists of 12,250 shares of cumulative 5% preferred stock with a $10 par value and 5,250 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

The amount of dividends paid to preferred and common shareholders in Year 2 is:

47. Sweet Company’s outstanding stock consists of 1,100 shares of noncumulative 4% preferred stock with a $100 par value and 10,100 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

The total amount of dividends paid to preferred and common shareholders over the three-year period is:

50. On January 1, a company issues bonds dated January 1 with a par value of $450,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $432,619. The journal entry to record the first interest payment using straight-line amortization is:

Please explain answers. Thanks!

Presented below is information related to Sarasota Corporation for the current year.

Compute the ending inventory, assuming that (a) gross profit is 45% of sales, (b) gross profit is 60% of cost, (c) gross profit is 33% of sales, and (d) gross profit is 25% of cost. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answers to 0 decimal places, e.g. 28,987.)

Kimball International Inc. uses the LIFO method of accounting for inventory. In its 2017 inventory footnote Kimball reported a LIFO reserve of $19,500 and $21,100 at June 30, 2017 and 2016, respectively. Selected data from the financial statements is below 2017 2016 Total inventory $89,489 $76,146 Net Sales 923,636 895,912 Cost of Sales 664,311 645,591 Gross Profit 259,325 250,321 Earnings per Share $2.15 $1.96 a. Compute the inventory amount at June 30, 2017 for Kimball International Inc. assuming that it had used the FIFO method of accounting for inventory. (3 points) b. Does Kimball’s use of LIFO rather than FIFO affect its cash flows? Explain briefly. (2 points) -- Font family --Andale MonoArialArial BlackBook AntiquaComic Sans MSCourier NewGeorgiaHelveticaImpactSymbolTahomaTerminalTimes New RomanTrebuchet MSVerdanaWebdingsWingdings -- Font size --1 (8pt)2 (10pt)3 (12pt)4 (14pt)5 (18pt)6 (24pt)7 (36pt)

Larsen Company is a manufacturer of car seats. Each car seat passes through 1st the assembly department and 2nd testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is 90% complete. Conversion costs are added evenly during the testing department’s process. As work in assembly is completed, each unit is immediately transferred to testing. As each unit is completed in testing, it is immediately transferred to Finished Goods. Suppose that Larsen Company uses FIFO in all of its departments. Data for the testing department for October 2014 are as follows:

                                                   Physical      Transferred-          Direct             Conversion

                                                       units          In Costs           Materials                    Costs

Beg. work in process ^a                   7,500        $2,800,000        $0 $835,460

Transferred in currently                 ? =_____ <------ question

Units Completed [UC]                      26,300

End. work in process ^b                     3,700

Total costs added currently        - - - - - - -          $7,735,250       $9,704,700          $3,955,900

-----------------------------------
^aDegree of completion: transferred-in,?____%; direct materials,0%; conversion, 70%.

^bDegree of completion: transferred-in costs,100%; direct materials,0%; conversion costs, 60%.

[And answer Question 1-5 step by step]

Required: Fill in the blanks ABOVE and below. Grading will NOT consider your format and step-by-step solution:

1.a. Are the %s on Beg. Inventory REQUIRED for YOU to compute the equivalent units in the Required Item 1 below? Y/N? ____.

1.b. Compute the Current-period’s equivalent units in the TESTING department:

For the Transferred-in ______________, Direct Material ________________, and Conversion _____________________.

2. Is the total equivalent units the total of OUTPUT or INPUT done? My answer is it’s ________.

4. Calculate the Current-period’s Cost per equivalent unit for:

the Transferred-in ______________, Direct Material ________________, and

Conversion _______________.

5. Assign costs to the units completed and transferred out: $___________________;

and to those in ending work in process: $___________________.

The comparative balance sheets of First Solar Corporation are presented below.

First Solar Corporation

Comparative Condensed Balance Sheets

December 31

2018              2017

Assets

Current assets                            $ 90,000         $ 80,000

Property, plant, and equipment (net)         95,400            90,000

Intangibles                                  33,600            40,000

Total assets                            $219,000          $210,000

Liabilities and stockholders' equity                                   

Current liabilities                       $ 58,320         $ 48,000

Long-term liabilities                       142,500           150,000

Stockholders' equity                         18,180            12,000

Total liab & stockholders' equity       $219,000          $210,000

Instructions

(a) Prepare a horizontal analysis of the balance sheet data using 2017 as a base.

(b) Prepare a vertical analysis of the balance sheet data in columnar form for 2018.