Miller Company’s total sales are $120,000. The
company’s direct labor cost is $15,000, which represents 30% of its
total conversion cost and 40% of its total prime cost. Its total
selling and administrative expense is $18,000 and its only variable
selling and administrative expense is a sales commission of 5% of
sales. The company maintains no beginning or ending inventories and
its manufacturing overhead costs are entirely fixed
costs.
Required:
1. What is the total manufacturing overhead
cost?
2. What is the total direct materials cost?
3. What is the total manufacturing cost?
4. What is the total variable selling and
administrative cost?
5. What is the total variable cost?
6. What is the total fixed cost?
7. What is the total contribution margin?
In: Finance
Miller Company’s total sales are $210,000. The company’s direct labor cost is $25,200, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $31,500 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs.
Required:
1. What is the total manufacturing overhead cost?
2. What is the total direct materials cost?
3. What is the total manufacturing cost?
4. What is the total variable selling and administrative cost?
5. What is the total variable cost?
6. What is the total fixed cost?
7. What is the total contribution margin?
In: Accounting
Miller Company’s total sales are $153,000. The company’s direct labor cost is $18,360, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $22,950 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs.
Required:
1. What is the total manufacturing overhead cost?
2. What is the total direct materials cost?
3. What is the total manufacturing cost?
4. What is the total variable selling and administrative cost?
5. What is the total variable cost?
6. What is the total fixed cost?
7. What is the total contribution margin?
In: Accounting
Miller Company’s total sales are $192,000. The company’s direct labor cost is $23,040, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $28,800 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs.
Required:
1. What is the total manufacturing overhead cost?
2. What is the total direct materials cost?
3. What is the total manufacturing cost?
4. What is the total variable selling and administrative cost?
5. What is the total variable cost?
6. What is the total fixed cost?
7. What is the total contribution margin?
In: Accounting
Miller Company’s total sales are $180,000. The company’s direct labor cost is $21,600, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $27,000 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. Required: 1. What is the total manufacturing overhead cost? 2. What is the total direct materials cost? 3. What is the total manufacturing cost? 4. What is the total variable selling and administrative cost? 5. What is the total variable cost? 6. What is the total fixed cost? 7. What is the total contribution margin?
In: Accounting
Miller Company’s total sales are $126,000. The company’s direct labor cost is $15,120, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $18,900 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs.
Required:
1. What is the total manufacturing overhead cost?
2. What is the total direct materials cost?
3. What is the total manufacturing cost?
4. What is the total variable selling and administrative cost?
5. What is the total variable cost?
6. What is the total fixed cost?
7. What is the total contribution margin?
In: Accounting
Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31:
Record these transactions on page 10:
Year 1
Jan.22Purchased 23,600 shares of Sankal Inc. as an available-for-sale security at $18 per share, including the brokerage commission.
Mar.8Received a cash dividend of $0.21 per share on Sankal Inc. stock.
Sep.8A cash dividend of $0.24 per share was received on the Sankal stock.
Oct.17Sold 4,700 shares of Sankal Inc. stock at $15 per share less a brokerage commission of $60.
Dec.31Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $26 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment.
Record these transactions on page 11:
Year 2
Jan.10Purchased an influential interest in Imboden Inc. for $1,287,000 by purchasing 165,000 shares directly from the estate of the founder of Imboden Inc. There are 500,000 shares of Imboden Inc. stock outstanding.
Mar.10Received a cash dividend of $0.29 per share on Sankal Inc. stock.
Sep.12Received a cash dividend of $0.24 per share plus an extra dividend of $0.06 per share on Sankal Inc. stock.
Dec.31Received $56,400 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $489,800 in Year 2. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc.
Dec.31Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $21 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the decrease in fair value from $26 to $21 per share.
Required:
1.Journalize the entries to record these transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries.
2.Prepare the investment-related asset and stockholders’ equity balance sheet presentation for Forte Inc. on December 31, Year 2, assuming the Retained Earnings balance on December 31, Year 2, is $376,000. Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31:
Record these transactions on page 10:
|
Year 1 |
||
| Jan. | 22 | Purchased 23,600 shares of Sankal Inc. as an available-for-sale security at $18 per share, including the brokerage commission. |
| Mar. | 8 | Received a cash dividend of $0.21 per share on Sankal Inc. stock. |
| Sep. | 8 | A cash dividend of $0.24 per share was received on the Sankal stock. |
| Oct. | 17 | Sold 4,700 shares of Sankal Inc. stock at $15 per share less a brokerage commission of $60. |
| Dec. | 31 | Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $26 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment. |
Record these transactions on page 11:
|
Year 2 |
||
| Jan. | 10 | Purchased an influential interest in Imboden Inc. for $1,287,000 by purchasing 165,000 shares directly from the estate of the founder of Imboden Inc. There are 500,000 shares of Imboden Inc. stock outstanding. |
| Mar. | 10 | Received a cash dividend of $0.29 per share on Sankal Inc. stock. |
| Sep. | 12 | Received a cash dividend of $0.24 per share plus an extra dividend of $0.06 per share on Sankal Inc. stock. |
| Dec. | 31 | Received $56,400 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $489,800 in Year 2. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. |
| Dec. | 31 | Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $21 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the decrease in fair value from $26 to $21 per share. |
| Required: | |
| 1. | Journalize the entries to record these transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. |
| 2. | Prepare the investment-related asset and stockholders’ equity balance sheet presentation for Forte Inc. on December 31, Year 2, assuming the Retained Earnings balance on December 31, Year 2, is $376,000. Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
X
Chart of Accounts
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Forte Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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X
Amount Descriptions
|
Amount Descriptions |
|
| Available-for-sale investments (at cost) | |
| Available-for-sale investments (at fair value) | |
| Net income | |
| Net loss | |
| Other comprehensive income (loss) | |
| Other income (loss) | |
| Trading investments (at cost) | |
| Trading investments (at fair value) |
In: Accounting
Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 20Y6. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31, 20Y6:
| Jan. | 10 | Purchased an influential interest in Imboden Inc. for $720,000 by purchasing 96,000 shares directly from the estate of the founder of Imboden Inc. There are 300,000 shares of Imboden Inc. stock outstanding. |
| Dec. | 31 | Received $57,600 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $450,000 in 20Y6. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. |
| Required: | |
| 1. | Journalize the entries to record these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. |
| 2. | Should Forte Inc.’s investment in Imboden Inc. be reported at fair value on its financial statements for the year ending December 31, 20Y6? |
In: Accounting
Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31:
Record these transactions on page 10:
| Year 1 | ||
|---|---|---|
| Jan. | 22 | Purchased 22,000 shares of Sankal Inc. as an available-for-sale security at $18 per share, including the brokerage commission. |
| Mar. | 8 | Received a cash dividend of $0.22 per share on Sankal Inc. stock. |
| Sep. | 8 | A cash dividend of $0.25 per share was received on the Sankal stock. |
| Oct. | 17 | Sold 3,000 shares of Sankal Inc. stock at $16 per share less a brokerage commission of $75. |
| Dec. | 31 | Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $25 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment. |
Record these transactions on page 11:
| Year 2 | ||
|---|---|---|
| Jan. | 10 | Purchased an influential interest in Imboden Inc. for $720,000 by purchasing 96,000 shares directly from the estate of the founder of Imboden Inc. There are 300,000 shares of Imboden Inc. stock outstanding. |
| Mar. | 10 | Received a cash dividend of $0.30 per share on Sankal Inc. stock. |
| Sep. | 12 | Received a cash dividend of $0.25 per share plus an extra dividend of $0.05 per share on Sankal Inc. stock. |
| Dec. | 31 | Received $57,600 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $450,000 in Year 2. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. |
| Dec. | 31 | Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $22 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the decrease in fair value from $25 to $22 per share. |
| Required: | |
| 1. | Journalize the entries to record these transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. |
| 2. | Prepare the investment-related asset and stockholders’ equity balance sheet presentation for Forte Inc. on December 31, Year 2, assuming that the Retained Earnings balance on December 31, Year 2, is $389,000. Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
Journal
1a. Journalize the entries to record Year 1 transactions. Be sure to enter the year as part of the date for the first entry on each page. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
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1b. Journalize the entries to record Year 2 transactions. Be sure to enter the year as part of the date for the first entry on each page. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries.
PAGE 11
JOURNAL
ACCOUNTING EQUATION
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Balance Sheet
2. Prepare the investment-related asset and stockholders’ equity balance sheet presentation for Forte Inc. on December 31, Year 2, assuming that the Retained Earnings balance on December 31, Year 2, is $389,000. Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
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Forte Inc. |
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Balance Sheet (selected items) |
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December 31, Year 2 |
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1 |
Current assets: |
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3 |
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Investments: |
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Stockholders’ equity: |
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10 |
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11 |
In: Accounting
Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31:
Record these transactions on page 10:
| Year 1 | ||
|---|---|---|
| Jan. | 22 | Purchased 22,000 shares of Sankal Inc. as an available-for-sale security at $18 per share, including the brokerage commission. |
| Mar. | 8 | Received a cash dividend of $0.22 per share on Sankal Inc. stock. |
| Sep. | 8 | A cash dividend of $0.25 per share was received on the Sankal stock. |
| Oct. | 17 | Sold 3,000 shares of Sankal Inc. stock at $16 per share less a brokerage commission of $75. |
| Dec. | 31 | Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $25 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment. |
Record these transactions on page 11:
| Year 2 | ||
|---|---|---|
| Jan. | 10 | Purchased an influential interest in Imboden Inc. for $720,000 by purchasing 96,000 shares directly from the estate of the founder of Imboden Inc. There are 300,000 shares of Imboden Inc. stock outstanding. |
| Mar. | 10 | Received a cash dividend of $0.30 per share on Sankal Inc. stock. |
| Sep. | 12 | Received a cash dividend of $0.25 per share plus an extra dividend of $0.05 per share on Sankal Inc. stock. |
| Dec. | 31 | Received $57,600 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $450,000 in Year 2. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. |
| Dec. | 31 | Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $22 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the decrease in fair value from $25 to $22 per share. |
| Required: | |
| 1. | Journalize the entries to record these transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. |
| 2. | Prepare the investment-related asset and stockholders’ equity balance sheet presentation for Forte Inc. on December 31, Year 2, assuming that the Retained Earnings balance on December 31, Year 2, is $389,000. Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
Chart of Accounts
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Forte Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amount Descriptions
| Amount Descriptions | |
|---|---|
| Available-for-sale investments (at cost) | |
| Available-for-sale investments (at fair value) | |
| Net income | |
| Net loss | |
| Other comprehensive income (loss) | |
| Other income (loss) | |
| Trading investments (at cost) | |
| Trading investments (at fair value) |
Journal
1a. Journalize the entries to record Year 1 transactions. Be sure to enter the year as part of the date for the first entry on each page. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
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1b. Journalize the entries to record Year 2 transactions. Be sure to enter the year as part of the date for the first entry on each page. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries.
PAGE 11
JOURNAL
ACCOUNTING EQUATION
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Balance Sheet
2. Prepare the investment-related asset and stockholders’ equity balance sheet presentation for Forte Inc. on December 31, Year 2, assuming that the Retained Earnings balance on December 31, Year 2, is $389,000. Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
|
Forte Inc. |
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Balance Sheet (selected items) |
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December 31, Year 2 |
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1 |
Current assets: |
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2 |
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3 |
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4 |
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Investments: |
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Stockholders’ equity: |
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11 |
In: Accounting