Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,075 hours each month to produce 2,150 sets of covers. The standard costs associated with this level of production are:
| Total | Per Set of Covers |
||||
| Direct materials | $ | 54,825 | $ | 25.50 | |
| Direct labor | $ | 10,750 | 5.00 | ||
| Variable manufacturing overhead (based on direct labor-hours) | $ | 5,375 | 2.50 | ||
| $ | 33.00 | ||||
During August, the factory worked only 800 direct labor-hours and produced 2,500 sets of covers. The following actual costs were recorded during the month:
| Total | Per Set of Covers |
||||
| Direct materials (12,500 yards) | $ | 58,750 | $ | 23.50 | |
| Direct labor | $ | 13,000 | 5.20 | ||
| Variable manufacturing overhead | $ | 7,000 | 2.80 | ||
| $ | 31.50 | ||||
At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production.
Required:
1. Compute the materials price and quantity variances for August.
2. Compute the labor rate and efficiency variances for August.
3. Compute the variable overhead rate and efficiency variances for August.
(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
In: Accounting
Robert Perez is a contractor specializing in custom-built
jacuzzis. On May 1, 2017, his ledger contains the following
data.
Raw Materials Inventory $30,000 Work in Process Inventory 12,200
Manufacturing Overhead 2,500 (dr.) The Manufacturing Overhead
account has debit totals of $12,500 and credit totals of
$10,000.
Subsidiary data for Work in Process Inventory on May 1 include: Job
Cost Sheets Job Manufacturing by Customer Direct Materials Direct
Labor Overhead Stiner $2,500 $2,000 $1,400 Alton 2,000 1,200 840
Herman 900 800 560 $5,400 $4,000 $2,800
During May, the following costs were incurred: Raw materials
purchased on account $4,000, Labor paid $7,000, and Manufacturing
Overhead paid $1,400.
A summary of materials requisition slips and time tickets for the
month of May reveals the following. Job by Customer Materials
Requisition Slips Time Tickets Stiner $ 500 $ 400 Alton 600 1,000
Herman 2,300 1,300 Smith 1,900 2,300 5,300 5,000 General use 1,500
2,000 $6,800 $7,000
Overhead was charged to jobs on the basis of $0.70 per dollar of
direct labor cost. The Jacuzzis for customers Stiner, Alton, and
Herman were completed during May. The three Jacuzzis were sold for
a total of $36,000.
Instructions (a) Prepare journal entries for the May transactions:
(i) for purchase of raw materials, factory labor costs incurred,
and manufacturing overhead costs incurred; (ii) assignment of raw
materials, labor, and overhead to production; and completion of
jobs and(iii) sale of goods. (iii) Post the entries to Work in
Process Inventory. Reconcile the balance in Work in Process
Inventory with the costs of unfinished jobs. (MAKE A SHORT SCHEDULE
FOR THIS.)
In: Accounting
The accounting records of Wall’s China Shop reflected the
following balances as of January 1, Year 3:
| Cash | $ |
17,700 |
||
| Beginning inventory | 20,680 | (220 @ $94) | ||
| Common stock | 14,700 | |||
| Retained earnings |
23,680 |
|||
The following five transactions occurred in Year 3:
Required
a. Compute the cost of goods sold and ending
inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3)
weighted-average cost flow. Compute the income tax expense for each
method.
b. Use a vertical model to show the Year 3 income
statement, balance sheet, and statement of cash flows under FIFO,
LIFO, and weighted average. (Hint: Record the events under
an accounting equation before preparing the statements.)
Use a vertical model to prepare the Year 3 statement of cash flows under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount. Amounts to be deducted should be indicated with a minus sign.)
|
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In: Accounting
a) In terms of the company's Act, set out the
definition of distribution as well as three types of
distribution.
b) A company’s directors may not authorize any proposed
distribution unless it has complied with
which two tests?
c) Briefly discuss the meaning of ‘’financial assistance’’ in terms
of company law.
d) With reference to case law, discuss the term securities in terms
of company law.
In: Accounting
he printout of the Revenues and Appropriations subsidiary ledger accounts for the General Fund of the City of Augusta for the first quarter of the fiscal year appeared as follows: Revenues Ledger Est. Revenues Revenues Balance Account Ref. Account Title Dr(Cr) Cr(Dr) Dr(Cr) 3/4020 Taxes—Real Property 101 Budget Authorization 764,000 764,000 102 Received in Cash 212,600 551,400 3/4050 Licenses and Permits 101 Budget Authorization 114,000 114,000 102 Received in Cash 11,400 102,600 3/4070 Intergovernmental Revenue 101 Budget Authorization 64,000 64,000 102 Received in Cash 16,400 47,600 103 13,900 61,500 Appropriations, Expenditures, and Encumbrances Ledger Encumbrances Increase Encumbrances Decrease Encumbrances Balance Expenditures Expenditures Balance Appropriation Balance Account Ref Account / Description Dr (Cr) Dr(Cr) Dr(Cr) Dr(Cr) Cr(Dr) Cr(Dr) 5/6/7020 General Government 101 Budget Authorization 649,000 649,000 102 Purchase Order Issued 7,100 7,100 641,900 102 Payroll 162,600 162,600 479,300 102 Goods Received 5,400 1,700 5,350 167,950 479,350 5/6/7030 Public Safety 101 Budget Authorization 139,000 139,000 102 Payroll 31,400 31,400 107,600 103 52,800 160,400 5/6/7050 Culture and Recreation 101 Budget Authorization 99,000 99,000 102 Purchase Order Issued 1,900 1,900 97,100 102 Goods Received 1,900 0 1,700 1,700 97,300 102 Payroll 15,700 17,400 81,600 5/6/7070 Miscellaneous 101 Budget Authorization 16,400 16,400
Required
Assuming that there are no other General Fund revenue or expenditure transactions, answer the following questions. What were the original approved budget amounts for Estimated Revenues and for Appropriations? (1) Was the budget adjusted during the year? (2) If so, which accounts if any were adjusted and by how much? (3) In total, has Budgetary Fund Balance increased, decreased, or remained the same during the first fiscal quarter?\ (1) What are the current balances of the Estimated Revenues and Appropriations control accounts? (2) What are the current balances of the Revenues, Encumbrances, and Expenditures control accounts?
In: Accounting
Describe the purpose of U.S. generally accepted accounting principles (U.S. GAAP) and the benefits that these rules provide.
In: Accounting
Tax 2018. Amos is a self-employed tax attorney. He and Monica, his employee, attend a conference in Dallas sponsored by the American Institute of CPAs. The following expenses are incurred during the trip:
|
Amos |
Monica |
|
|
Conference registration |
$ 900 |
$900 |
|
Airfare |
1,200 |
700 |
|
Taxi fares |
100 |
–0– |
|
Lodging in Dallas |
750 |
300 |
In: Accounting
On January 1, 2020, Pearl Company makes the two following
acquisitions.
| 1. | Purchases land having a fair value of $360,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $566,467. | |
| 2. | Purchases equipment by issuing a 7%, 9-year promissory note having a maturity value of $520,000 (interest payable annually). |
The company has to pay 12% interest for funds from its
bank.
| (a) | Record the two journal entries that should be recorded by Pearl Company for the two purchases on January 1, 2020. | |
| (b) | Record the interest at the end of the first year on both notes using the effective-interest method. |
(Round present value factor calculations to 5 decimal
places, e.g. 1.25124 and the final answer to 0 decimal places e.g.
58,971. If no entry is required, select "No Entry" for the account
titles and enter 0 for the amounts. Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
|
No. |
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|---|
| (a) 1. |
January 1, 2020 |
enter an account title to record the first purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
|
enter an account title to record the first purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
||
|
enter an account title to record the first purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
||
| 2. |
January 1, 2020 |
enter an account title to record the second purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
|
enter an account title to record the second purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
||
|
enter an account title to record the second purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
||
| (b) 1. |
December 31, 2020 |
to record the interest on the first note using the effective-interest method on December 31, 2017 |
enter a debit amount |
enter a credit amount |
|
to record the interest on the first note using the effective-interest method on December 31, 2017 |
enter a debit amount |
enter a credit amount |
||
| 2. |
December 31, 2020 |
to record the interest on the second note using the effective-interest method on December 31, 2017 |
enter a debit amount |
enter a credit amount |
|
to record the interest on the second note using the effective-interest method on December 31, 2017 |
enter a debit amount |
enter a credit amount |
||
|
to record the interest on the second note using the effective-interest method on December 31, 2017 |
enter a debit amount |
enter a credit amount |
In: Accounting
Jan 21 A customer who owed $10,000 on an account receivable, agreed to sign a 60-day note receivable with an interest rate of 6.0%. The interest earned on the note will be paid at the maturity date of the note receivable.
|
Jan. 21 |
Notes Receivable……………........... Accounts Receivable ....……… |
$10,000 |
$10,000 |
Feb 10 Sanford Company sold the note receivable from Jan 21st to the bank, which discounted the note at 8.0%.
Required:
What is the correct journal entry for February 10th and why?
In: Accounting
|
Capital Corporation purchased 100 percent of Cook Company's stock on January 1, 20X4, for $340,000. On that date, Cook reported net assets with a historical cost of $300,000 and a fair value of $340,000. The difference was due to the increased value of buildings with a remaining life of 10 years. During 20X4 and 20X5 Cook reported net income of $10,000 and $20,000 and paid dividends of $6,000 and $9,000, respectively.
|
In: Accounting
|
CONSOLIDATED BALANCE SHEET (millions of dollars) |
2016 |
2015 |
|
Assets |
2016 |
2015 |
|
Current assets |
2016 |
2015 |
|
Cash and cash equivalents |
3,657 |
3,705 |
|
Notes and accounts receivable |
21,394 |
19,875 |
|
Inventories: Crude oil, products and merchandise |
10,877 |
12,037 |
|
Materials and supplies |
4,203 |
4,208 |
|
Other current assets |
1,285 |
2,798 |
|
Total current assets |
41,416 |
42,623 |
Crude oil, products and merchandise inventories are carried at the lower of current market value or cost (generally determined under the last-in, first-out method – LIFO). Inventory costs include expenditures and other charges (including depreciation) directly and indirectly incurred in bringing the inventory to its existing condition and location.
In 2016, 2015 and 2014, net income included losses of $295 million and $186 million, and a gain of $187 million, respectively, attributable to the combined effects of LIFO inventory accumulations and drawdowns. The aggregate replacement cost of inventories was estimated to exceed their LIFO carrying values by $8.1 billion and $4.5 billion at December 31, 2016, and 2015, respectively.
Crude oil, products and merchandise as of year-end 2016 and 2015 consist of the following:
|
Crude oil, products and merchandise as of year-end 2016 and 2015 consist of the following (billions of dollars): |
2016 |
2015 |
|
Crude oil |
3.9 |
4.2 |
|
Petroleum products |
3.7 |
4.1 |
|
Chemical products |
2.8 |
2.7 |
|
Gas |
0.5 |
1.0 |
|
Total |
10.9 |
12.0 |
|
(millions of dollars) |
2016 |
2015 |
2014 |
|
Total revenues |
226,094 |
268,882 |
411,939 |
|
Cost of Goods Sold |
136,098 |
165,590 |
266,831 |
|
Net income |
7,840 |
16,150 |
32,520 |
5.3 If ExxonMobil had used FIFO in 2016, what would be the value of the inventory?
|
$10,877 |
||
|
$18,977 |
||
|
$8,100 |
||
|
$2,777 |
In: Accounting
On February 1, 2019, Ellison Co. issued nine-year callable bonds with a face value of $250,000,000 and a stated interest rate of 8.5%, payable semiannually on July 1 and January 1. The bonds were sold to yield 8%. Table values are:
a. Calculate the issue price of the bonds.
b. Record the issuance on February 1, 2019.
c. Prepare the journal entries for the interest expense and payments for 2019, 2020, 2021, 2022 and 2023. (you will need to prepare amortization schedule)
d. Assume all of the bonds are called on January 1, 2024 at 102. Prepare the journal entry to record the call.
In: Accounting
Revise your calculations based the new information provided
below and then answer the questions that follow.
A company lends $372,000 to an owner and accepts a three year, 7%
note in return. The note was issued on June 1st of the current
year, and will be due on June 1st of the final year of the
note.
Required:
(a) Prepare the journal entry to be made when the company
makes the loan and accepts the note in return. (If no entry
is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
(b) Calculate the interest revenue to be recorded
at the end of each year the note is outstanding.
|
(c) Prepare the journal entries to accrue the
interest receivable for each year the note is outstanding.
(If no entry is required for a transaction/event, select
"No Journal Entry Required" in the first account
field.)
Dec 31
(d) Prepare the journal entry to record receiving
the cash at the note's maturity. (If no entry is required
for a transaction/event, select "No Journal Entry Required" in the
first account field.)
June 01
In: Accounting
Share two most valuable concepts learned in Federal Taxation - Individuals course and explain why.
In: Accounting
1)What are the steps in completing the accounting cycle?
2)How do the different steps affect the financial statements?
3)What is the effect on the financial statements of missing a step when completing the accounting cycle?
4)How do these steps play a roll in accrual basis accounting?
In: Accounting