Weightless Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:

The finished goods inventory estimated for October 1, for the Bath and Gym scale models is 1,700 and 2,100 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,200 and 2,300 units, respectively.

Prepare a production budget for the small and large scales for the month ended October 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Moon Star Company obtained two notes receivable during the year of 2019. The details of the notes are as follows:

October 3, 2019 Sold goods for $24,000 on account to a customer (Sun Company) and received 8% note. The note was due on October 18, 2019.

December 5, 2019 Received 13% note for $15,000 to replace account receivable from a customer (Strong Company). The note was due on January 5, 2020.

Instructions (35 points):

a. Compute maturity value of the note receivable received on October 3 (Show supporting calculations.)

b. Journalize the collection of the note which was due on October 18, 2019.

c. Journalize the adjusting entry at December 31, 2019 to record accrued interest.

d. Compute total interest revenue earned on the note receivable received on December 5, 2019 (Show supporting calculations.)

e. Journalize the collection of the note which was due on January 5, 2020.

1. Al Fara Corporation makes a product with the following standard costs:

During October, 1,900 unitswere produced. The company reported the following results concerning this product at the end of  October:

1. Compute the Direct materials price variance (Spending) and quantity variance for the month of October. State if these variances are favorable or unfavorable. (2pts)
2. Compute the Direct Labor rate variance (Spending) and labor efficiency variance (quantity) for the month of October. State if these variances are favorable or unfavorable. (1pt)

Production Budget

Weightless Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:

The finished goods inventory estimated for October 1, for the Bath and Gym scale models is 1,500 and 2,600 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,100 and 2,800 units, respectively.

Prepare a production budget for the small and large scales for the month ended October 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Schedule of Cash Payments

Excel Learning Systems Inc. was organized on September 30, 2016. Projected selling and administrative expenses for each of the first three months of operations are as follows:

October$124,400

November116,900

December106,400

Depreciation, insurance, and property taxes represent $27,000 of the estimated monthly expenses. The annual insurance premium was paid on September 30, and property taxes for the year will be paid in June. The company expects that 69% of the remainder of the expenses will be paid in the month in which they are incurred, with the balance to be paid in the following month.

Prepare a schedule indicating cash payments for selling and administrative expenses for October, November, and December.

Excel Learning Systems Inc.

Schedule of Cash Payments for Selling and Administrative Expenses

For the Three Months Ending December 31, 2016

OctoberNovemberDecember

October expenses:

Paid in October$

Paid in November$

November expenses:

Paid in November

Paid in December$

December expenses:

Paid in December

Total cash payments$$$

Khaled Industries, a defense contractor, is developing a cash budget for October, November, and December.

(i) Khaled’s sales in August and September were $100,000 and $200,000 respectively. Forecasted Sales for October, November, and December are as below: October - $400,000 November - $300,000 December - $200,000
30% of the firm’s sales have been for cash, 50% have been collected after 1 month, and the remaining 20% after 2 months. Bad-debt expenses (uncollectible accounts) have been negligible. In December, Khaled will receive a $30,000 dividend from stock in a subsidiary.

(ii) Khaled has also gathered the relevant information for the development of a cash disbursement schedule. Purchases will represent 70% of sales - 40% will be paid immediately in cash, 60% is paid the month following the purchase. The firm will also expend cash on rent, wages and salaries every month of $52,000.
Prepare a Cash Budget for October, November and December.

The following transactions occurred during the month of October for Bella Boutique.

Required:

Prepare the general journal entries to record these transactions.  

On June 1, 2020, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2021. Expenditures on the project were as follows ($ in millions):

On July 1, 2020, Crocus obtained a $70 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2021. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2020 and 2021. The company's fiscal year-end is December 31.

What is the amount of interest that Crocus should capitalize in 2021, using the specific interest method? (Enter your answers to nearest whole dollar amount.)

$7,283,000.

$7,117,000

$8,740,000.

$7,248,000.