Entries for Process Cost System

Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output of Making is transferred to the Packing Department, where packaging is added at the beginning of the process. On July 1, Preston & Grover Soap Company had the following inventories:

Departmental accounts are maintained for factory overhead, which both have zero balances on July 1.

Manufacturing operations for July are summarized as follows:

Required:

1. Journalize the entries to record the operations, identifying each entry by letter. For a compound transaction, if an amount box does not require an entry, leave it blank.

2. Compute the July 31 balances of the inventory accounts.

3. Compute the July 31 balances of the factory overhead accounts.

1. Cash Budget

   The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:

   Cash Budget The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May June July Sales $95,000 $122,000 $155,000 Manufacturing costs 40,000 52,000 56,000 Selling and administrative expenses 28,000 33,000 34,000 Capital expenditures _ _ 37,000 The company expects to sell about 12% of its merchandise for cash. Of sales on account, 65% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $6,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 85% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of May 1 include cash of $36,000, marketable securities of $51,000, and accounts receivable of $109,600 ($83,000 from April sales and $26,600 from March sales). Sales on account for March and April were $76,000 and $83,000, respectively. Current liabilities as of May 1 include $15,000 of accounts payable incurred in April for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $15,000 will be made in June. Sonoma’s regular quarterly dividend of $6,000 is expected to be declared in June and paid in July. Management wants to maintain a minimum cash balance of $28,000. Required: 1. Prepare a monthly cash budget and supporting schedules for May, June, and July. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Sonoma Housewares Inc. Cash Budget For the Three Months Ending July 31 May June July Estimated cash receipts from: Cash sales $ $ $ Collection of accounts receivable Total cash receipts $ $ $ Estimated cash payments for: Manufacturing costs $ $ $ Selling and administrative expenses Capital expenditures Other purposes: Income tax Dividends Total cash payments $ $ $ Cash increase or (decrease) $ $ $ Cash balance at beginning of month Cash balance at end of month $ $ $ Minimum cash balance Excess (deficiency) $ $ $ 2. The budget indicates that the minimum cash balance   be maintained in July. This situation can be corrected by   and/or by the   of the marketable securities, if they are held for such purposes. At the end of May and June, the cash balance will   the minimum desired balance.

   The company expects to sell about 12% of its merchandise for cash. Of sales on account, 65% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $6,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 85% are expected to be paid in the month in which they are incurred and the balance in the following month.

   Current assets as of May 1 include cash of $36,000, marketable securities of $51,000, and accounts receivable of $109,600 ($83,000 from April sales and $26,600 from March sales). Sales on account for March and April were $76,000 and $83,000, respectively. Current liabilities as of May 1 include $15,000 of accounts payable incurred in April for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $15,000 will be made in June. Sonoma’s regular quarterly dividend of $6,000 is expected to be declared in June and paid in July. Management wants to maintain a minimum cash balance of $28,000.

   Required:

   1. Prepare a monthly cash budget and supporting schedules for May, June, and July. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign.

   Sonoma Housewares Inc.
   Cash Budget
   For the Three Months Ending July 31
   	May	June	July
   Estimated cash receipts from:
   Cash sales	$	$	$
   Collection of accounts receivable
   Total cash receipts	$	$	$
   Estimated cash payments for:
   Manufacturing costs	$	$	$
   Selling and administrative expenses
   Capital expenditures
   Other purposes:
   Income tax
   Dividends
   Total cash payments	$	$	$
   Cash increase or (decrease)	$	$	$
   Cash balance at beginning of month
   Cash balance at end of month	$	$	$
   Minimum cash balance
   Excess (deficiency)	$	$	$

   2. The budget indicates that the minimum cash balance   be maintained in July. This situation can be corrected by   and/or by the   of the marketable securities, if they are held for such purposes. At the end of May and June, the cash balance will   the minimum desired balance.

1. Cost of Goods Sold Budget

   Magnolia Candle Inc. budgeted production of 74,200 candles in 20Y4. Wax is required to produce a candle. Assume that eight ounces (one-half of a pound) of wax is required for each candle. The estimated January 1, 20Y4, wax inventory is 2,500 pounds. The desired December 31, 20Y4, wax inventory is 2,100 pounds. Candle wax costs $4.10 per pound.

   Each candle requires molding. Assume that 12 minutes are required to mold each candle. Molding labor costs $14.00 per hour.

   Prepare a cost of goods sold budget for Magnolia Candle Inc., using the information above. Assume that the estimated inventories on January 1, 20Y4, for finished goods and work in process were $9,800 and $3,600, respectively. Also assume that the desired inventories on December 31, 20Y4, for finished goods and work in process were $12,900 and $3,500, respectively. Factory overhead was budgeted at $109,600. Round your interim calculations to nearest cent, if required.

   MAGNOLIA CANDLE INC.
   Cost of Goods Sold Budget
   For the Year Ending December 31, 20Y4
   			$
   		$
   Direct materials:
   	$
   	$
   Cost of direct materials placed in production	$
   Total work in process during the period		$
   			$
   			$

Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the month of March are as follows.

Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricycles. (Round answers to 0 decimal places, e.g. 2,520.)

Calculate the unit costs of production for materials and conversion costs for both the bicycles and the tricycles. (Round unit costs to 3 decimal places, e.g. 25.215.)

Calculate the assignment of costs to units transferred out and in process at the end of the accounting period for both the bicycles and the tricycles. (Round answers to 0 decimal places, e.g. 2,520.)

Bicycles

Tricycles

Prepare a production cost report for the month of March for the bicycles only. (Round unit costs to 3 decimal places, e.g. 25.123 and all other answers to 0 decimal places, e.g. 2,520.)

Waterway Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $901,000. The following data pertain to the construction period.

(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.)

(b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.)

The trial balance of Swifty Ltd. at December 31, 2020, follows:

^* The investment income or loss relates to the FV-NI investments.

(a)

Prepare a classified statement of financial position as at December 31, 2020. Ignore income taxes. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

**please provide breakdown of how you got the answer. thanks

The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.

a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?

Garcia Home Improvement Company installs replacement siding, windows, and louvred glass doors for single-family homes and condominium complexes in northern New Jersey and southern New York. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2019, and Jim Alcide, a controller for Garcia, has gathered the following data concerning inventory.

At May 31, 2019, the balance in Garcia’s Raw Material Inventory account was $268,000

and the Allowance to Reduce Inventory to NRV had a credit balance of $10,700

Alcide summarized the relevant inventory cost and market data on May 31, 2019, in the schedule below.

Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Garcia’s May 31, 2019, financial statements for inventory under the lower-of-cost-or-NRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the cost principle.

Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows:

Required:

1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

Following is a list of financial statement items and amounts for Vantage Service as of 12/31/Year 1, the end of its first year in operation.

Accounts Receivable $ 41,300

Accounts Payable 31,300

Cash 10,130

Common Stock 21,300

Notes Payable 10,260

Equipment 50,650

Sales Revenue 106,500

Fuel Expense 10,130

Rent Expense 11,200

Advertising Expense 5,130

Salaries and Wages Expense 21,300

Retained Earnings ?

Dividends 19,520

Required: Prepare the Income Statement for the year ended December 31, Year 1.    Prepare the statement of retained earnings for the year ended December 31, Year 1.    Prepare the balance sheet for the year ended December 31, Year 1.

What amount does a company expect to collect from Accounts Receivable?

A) gross amount of Accounts Receivable

B) net realizable value of Accounts Receivable

C) gross amount of Accounts Receivable minus Allowance for Uncollectible Accounts

D) B and C

Emma Jones Company has the following information available:

Did the quick ratio improve from 2018 to 2019?

A) No.

B) Yes.

C) It stayed the same.

D) There is not enough information.

The partnership of Ace, Jack, and Spade has been in business for 25 years. On December 31, 20X5, Spade decided to retire. The partnership balance sheet reported the following capital balances for each partner at December 31, 20X5:

The partners allocate partnership income and loss in the ratio 20:30:50, respectively.

Required:
Record Spade’s withdrawal under each of the following independent situations.

g. Because of limited cash in the partnership, Spade received land with a fair value of $100,200 and a partnership note payable for $51,500. The land’s carrying amount on the partnership books was $61,800. Capital of the partnership after Spade’s retirement was $361,300. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

A.

Land

Ace capital

Jack capital

spade capital

B

Spade capital

ace capital

jack capital

land credit: 100,200

Notes payable: 51, 500

2. Ronald Zoller is planning to retire at the end of the current year. He estimates that he will need $18,000 a year for the next 15 years to meet his needs. Assuming the appropriate interest rate is $8%, how much should Zoller deposit on December 31 of the current year in order to be able to withdraw $18,000 at the end of each of the next 15 years.

Table I used to solve this problem

Table factor I used to solve this problem

Final answer

Peace Company issued common shares with a par value of $59,000 and a market value of $165,900 in exchange for 30 percent ownership of Symbol Corporation on January 1, 20X2. Symbol reported the following balances on that date:

The estimated economic life of the patents held by Symbol is 4 years. The buildings and equipment are expected to last 6 more years on average. Symbol paid dividends of $10,000 during 20X2 and reported net income of $81,000 for the year.

Required:
Compute the amount of investment income (loss) reported by Peace from its investment in Symbol for 20X2 and the balance in the investment account on December 31, 20X2, assuming the equity method is used in accounting for the investment.