Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 59 units @ $62 10 Sale 44 units 15 Purchase 33 units @ $66 20 Sale 23 units 24 Sale 11 units 30 Purchase 20 units @ $69 The business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. a. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Cost of Merchandise Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Apr. 1 $ $ Apr. 10 $ $ Apr. 15 $ $ Apr. 20 Apr. 24 Apr. 30 Apr. 30 Balances $ $ b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?
In: Accounting
12.4 Explain how calculating current cash debt coverage for an entity overcomes a disadvantage of the current and quick ratios.
In: Accounting
In: Accounting
For which of the following taxes is there a ceiling on the amount of employee annual earnings subject to the tax?
A.
FICAminus−OASDI
Your answer is not correct.
B.
State unemployment taxes
C.
Federal unemployment taxes
D.
All of these answers are correct.
The correct answer is D
Explain:
In: Accounting
Jessica purchased a home on January 1, 2018 for $580,000 by making a down payment of $230,000 and financing the remaining $350,000 with a 30-year loan, secured by the residence, at 6 percent. During 2018 and 2019, Jessica made interest-only payments on this loan of $21,000 (each year). On July 1, 2018, when her home was worth $580,000 Jessica borrowed an additional $145,000 secured by the home at an interest rate of 8 percent. During 2018, she made interest-only payments on the second loan in the amount of $5,800. During 2019, she made interest only on the second loan in the amount of $11,600. What is the maximum amount of the $32,600 interest expense Jessica paid during 2019 may she deduct as an itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard? (Assume not married filing separately.)
$0. $11,600. $30,682. $7,200. $32,600.
In: Accounting
4. The Reeves Company issued 10% bonds, dated January 1, 2017 with a face amount of $8 million. The bonds mature on December 31, 2026 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30th and December 31st. Required: 1. Determine the price of the bonds at January 1, 2017 2. Prepare the journal entry to record their issuance on January 1, 2017 3. Prepare the journal entry to record interest on June 30, 2017 (at the effective rate) 4. Prepare the journal entry to record interest on December 31, 2017 (at the effective rate)
In: Accounting
Detecting Fraud" Please respond to the following: Evaluate at what stage of the general accounting model it is easiest to commit computer fraud. Based upon your personal knowledge or work experience, describe the potential abuses that could occur and how they can be minimized. Speculate on why adult males with advanced degrees commit a disproportionate amount of fraud, based on a profile of fraud perpetrators prepared by the Association of Certified Fraud Examiners. Explain your position.
In: Accounting
At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts.
Machine A | Machine B | Machine C | |||||||
Cost of the asset | $ | 9,600 | $ | 38,800 | $ | 22,600 | |||
Installation costs | 850 | 2,700 | 1,800 | ||||||
Renovation costs prior to use | 650 | 2,300 | 2,800 | ||||||
Repairs after production began | 700 | 700 | 1,300 | ||||||
By the end of the first year, each machine had been operating 8,000 hours.
Required:
Estimates | |||||||
Machine | Life | Residual Value | Depreciation Method | ||||
A | 5 | years | $ | 1,600 | Straight-line | ||
B | 20,000 | hours | 1,200 | Units-of-production | |||
C | 10 | years | 2,000 | Double-declining-balance | |||
In: Accounting
Item1 Time Remaining 32 minutes 9 seconds 00:32:09 Item Skipped Item 1 Item 1 Item Skipped Time Remaining 32 minutes 9 seconds 00:32:09 Kozlov Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,106,280 84,000 machine hours Processing orders $ 140,650 2,900 orders Inspection $ 203,524 2,920 inspection hours The company makes 500 units of product A21W a year, requiring a total of 885 machine-hours, 50 orders, and 20 inspection-hours per year. The product's direct materials cost is $36.04 per unit and its direct labor cost is $30.04 per unit. According to the activity-based costing system, the average cost of product A21W is closest to:
In: Accounting
4 P analysis of apple in 2000 words along marketing plan.
In: Accounting
Iron Forge manufactures and sells a cast iron garden chair. The marketing department prepared the following quarterly sales forecast.
January 250 units
February 300 units
March 350 units
Total 900 units
The company tries to maintain 15% of the next month's forecasted sales in finished chairs inventory. January's beginning inventory to finished chair was 38 units. April and May sales are expected to be 400 chairs each month. Each chair requires 4 composite feet which are purchased from a vendor. The company tries to maintain 12% of the next month's forecasted production needs in feet inventory. January's beginning inventory for feet was 123.
Required:
A. Prepare a monthly production budgets for the first quarter. Include a total column.
B. Prepare a monthly materials purchases budget for chairs for the first quarter. Include a total column.
In: Accounting
3) | A utility deposit of $200 is required by the electric company. | ||||||||||||
The deposit is made on March 3, 2009 and record the general journal entry for both | |||||||||||||
the electric company and the customer. | |||||||||||||
A $100.00 of the deposit is used to pay the bill and the other | |||||||||||||
$100 is refunded on November 2, 2009. Record the general journal entry for both the electric | |||||||||||||
company and the customer. | (check figure: 11/2/2009 entry to Accounts Receivable = $100.00 credit) | ||||||||||||
In: Accounting
At month end what was the
In: Accounting
Jaden Kyler is the Chief Operating Officer at United Hospital in Newark New Jersey. He is analyzing thehospital's overhead costs but is not sure whether nursing hours or the number of patient days would be the best cost driver to use for predicting the hospital's overhead.
He has gathered the following information for the last six months of the most recent year:
Data Table:
Hospital |
Nursing |
Number of |
Overhead Cost |
Overhead Cost |
|
Month |
Overhead Costs |
Hours |
Patient Days |
per Nursing Hour |
per Patient Day |
July. . . . . . . |
$479,000 |
23,000 |
3,640 |
$20.83 |
$131.59 |
August. . . . |
$528,000 |
25,500 |
4,300 |
$20.71 |
$122.79 |
September. |
$416,000 |
20,500 |
4,260 |
$20.29 |
$97.65 |
October. . . . |
$453,000 |
22,000 |
3,490 |
$20.59 |
$129.80 |
November. . |
$559,000 |
30,500 |
5,730 |
$18.33 |
$97.56 |
December. . |
$435,000 |
21,000 |
3,280 |
$20.71 |
$132.62 |
Requirements:
1. Are the hospital's overhead costs fixed, variable, or mixed? Explain.
The hospital's overhead costs appear to be a ▼(fixed, mixed, variable cost). If it were a ▼ (fixed, mixed, variable cost), it would remain constant in total each month. If it were a ▼ (fixed, mixed, variable cost), it would remain constant on a per unit (of activity) basis. Both of the hospital's overhead cost per nursing hour and overhead cost per patient day ▼ (are fixed, vary) with volume.
2. Graph the hospital's overhead costs against nursing hours.
3. Graph the hospital's overhead costs against the number of patient days.
4. Do the data appear to be sound or do you see any potential data problems? Explain.
5. Use the high-low method to determine the hospital's cost equation using nursing hours as the cost driver. Predict total overhead costs if 24,500 nursing hours are predicted for the month.
6. Kyler runs a regression analysis using nursing hours as the cost driver to predict total hospital overhead costs. The Excel output from the regression analysis is as follows:
Regression analysis using nursing hours
SUMMARY OUTPUT - Nursing hours as cost driver
Regression Statistics |
||
Multiple R |
0.958335 |
|
R Square |
0.918405 |
|
Adjusted R Square |
0.898007 |
|
Standard Error |
17,712.08289 |
|
Observations |
6 |
ANOVA |
|||||
df |
SS |
MS |
F |
Significance F |
|
Regression |
1 |
14,124,461,812 |
14,124,461,812 |
45.022814 |
0.002568 |
Residual |
4 |
1,254,871,522 |
313,717,880 |
||
Total |
5 |
15,379,333,334 |
Standard |
Lower |
Upper |
||||
Coefficients |
Error |
t Stat |
P-value |
95% |
95% |
|
Intercept |
141,867.97 |
50,663.259 |
2.8 |
0.049 |
1,204.213 |
282,531.726 |
X Variable 1 |
14.17 |
2.111 |
6.71 |
0.000 |
8.305 |
20.029 |
If 24,500 nursing hours are predicted for the month, what is the total predicted hospitaloverhead?
7. Kyler then ran the regression analysis using number of patient days as the cost driver. The Excel output from the regression is shown here:
Regression analysis using number of patient days
SUMMARY OUTPUT - Using number of patient days as cost driver
Regression Statistics |
||
Multiple R |
0.736429 |
|
R Square |
0.542327 |
|
Adjusted R Square |
0.427909 |
|
Standard Error |
41,948.4953 |
|
Observations |
6 |
ANOVA |
|||||
df |
SS |
MS |
F |
Significance F |
|
Regression |
1 |
8,340,628,301 |
8,340,628,301 |
4.739865 |
0.09505 |
Residual |
4 |
7,038,705,032 |
1,759,676,258 |
||
Total |
5 |
15,379,333,333 |
Standard |
Lower |
Upper |
||||
Coefficients |
Error |
t Stat |
P-value |
95% |
95% |
|
Intercept |
289,807.47 |
88,271.2 |
3.283 |
0.03 |
44,727.331 |
534,887.615 |
X Variable 1 |
45.8 |
21.035 |
2.177 |
0.095 |
-12.607 |
104.198 |
If 3,650 patient days are predicted for the month, what is the total predicted hospitaloverhead?
8. Which regression analysis (using nursing hours or using number of patient days as the costdriver) produces the best cost equation? Explain your answer.
In: Accounting
Mr Novak Murray is the sole owner of Roger & Rafa, a store that offers tennis racquet stringing service (that involves the use of strings and labour). The unadjusted trial balance of Roger & Raga as at 30 June 2018 is shown below. The annual reporting period for the business ends 30 June.
Roger & Rafa Unadjusted Trial Balance as at 30 June 2018 |
||
Account |
Debit |
Credit |
Cash at Bank |
$18 000 |
|
Accounts Receivable |
3 200 |
|
String Supplies |
5 840 |
|
Stringing Machines |
23 400 |
|
Accounts Payable |
$ 1300 |
|
Novak Murray, Capital |
38 600 |
|
Novak Murray, Drawings |
2 500 |
|
Stringing Service Revenue |
21 420 |
|
Salaries Expense |
3 260 |
|
Rent Expense |
2 980 |
|
String Supplies Expense |
2 140 |
|
$61 320 |
$61 320 |
Additional information:
A cash payment of $540 for rent covering the period 1 May 2018 to 31 July 2018 was made on 30 April 2018 and debited to the Rent Expense account on the day.
One customer, Naomi Stosur, purchased a $250 service package by cash on 5 May 2018. Thepackage covers ten times of the use of the store’s stringing service. No service was used at purchase. This transaction was credited to service revenue on the day of purchase. Naomi had used the stringing service four times by the end of the reporting period.
The unpaid salaries earned by the store’s two sale assistants,
Alex and Ashleigh, totaled $780as at 30 June 2018.
Ignore depreciation. The use of string supplies in the period has
been accounted for.
Required
(a) Prepare the journal entries required to correct recording errors (if any, leave blank if there are no errors).
(b) Prepare adjusting entries (after correction of errors, if
any).
(c) Prepare the Adjusted Trial Balance for Roger & Rafa.
(For parts (a) & (b), provide your answers to the related item
number, no narration required.)
In: Accounting