GENERAL JOURNAL HAVE 14 ENTRIES
The investment manager of 4th National Bank invests some of the bank’s financial resources in trading securities. During the last quarter of 2018, the following transactions occurred in regard to these trading securities:
| Nov. 5 | Purchased 200 shares of Morgan Company common stock at $86 per share. |
| 19 | Purchased 300 shares of Parker Company preferred stock at $63 per share. |
| 29 | Sold 100 shares of Morgan Company common stock at $89 per share. |
| Dec. 15 | Purchased 400 shares of Tathem Company common stock at $37 per share. |
| 17 | Sold 100 shares of Parker Company preferred stock at $62 per share. |
On December 31, 2018, the market values of the shares were as follows: Morgan, $87 per share; Parker, $61 per share; and Tathem, $37.25 per share. The bank held no trading securities at the beginning of the last quarter of 2018.
Required:
| 1. | Prepare journal entries to record the preceding information. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2. | Show what the bank reports on its fourth quarter 2018 income statement for these trading securities. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3. |
Show how the bank reports these trading securities on its December 31, 2018, balance sheet.
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In: Accounting
[The following information applies to the questions displayed below.]
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:
| Beech Corporation | ||
| Balance Sheet | ||
| June 30 | ||
| Assets | ||
| Cash | $ | 86,000 |
| Accounts receivable | 138,000 | |
| Inventory | 75,000 | |
| Plant and equipment, net of depreciation | 229,000 | |
| Total assets | $ | 528,000 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $ | 90,000 |
| Common stock | 351,000 | |
| Retained earnings | 87,000 | |
| Total liabilities and stockholders’ equity | $ | 528,000 |
Beech’s managers have made the following additional assumptions and estimates:
Estimated sales for July, August, September, and October will be $400,000, $420,000, $410,000, and $430,000, respectively.
All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 45% in the month of sale and 55% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.
Each month’s ending inventory must equal 15% of the cost of next month’s sales. The cost of goods sold is 70% of sales. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.
Monthly selling and administrative expenses are always $56,000. Each month $8,000 of this total amount is depreciation expense and the remaining $48,000 relates to expenses that are paid in the month they are incurred.
The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.
Prepare a balance sheet as of September 30.
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In: Accounting
Consider the two separate samples given in the data set (samplecomparison.xlsx). Answer the questions below. Data listed below.
The range of the first data set is _____ .
The variance of the first data set is ____ . (Round to three decimal places as needed)
The standard deviation of the first data set is _____ . (Round to three decimal places as needed)
The range of the second data set is _____ .
The variance of the second data set is _____ . (Round to three decimal places as needed)
The standard deviation of the second data set is _____ . (Round to three decimal places as needed)
Which data set is most spread out based on these statistics?
Now remove the largest number from each data set and repeat the calculations (samplecomparison.xlsx). Answer the questions below.
The range of the first data set is _____ .
The variance of the first data set is _____ . (Round to three decimal places as needed)
The standard deviation of the first data set is _____ . (Round to three decimal places as needed)
The range of the second data set is _____ .
The variance of the second data set is _____ . (Round to three decimal places as needed)
The standard deviation of the second data set is _____ . (Round to three decimal places as needed)
Compare the results of parts the last three parts. Which statistic seems to be the most affected by the outliers, in terms of change of whole number values?
a. The standard deviation.
b. The variance.
c. The range.
d. There is no difference between the two samples.
Sample comparison data:
| Sample 1 | Sample 2 |
| 11 | 23 |
| 9 | 36 |
| 6 | 25 |
| 14 | 33 |
| 27 | 35 |
| 28 | 40 |
| 19 | 21 |
| 21 | 38 |
| 23 | 35 |
| 129 | 34 |
In: Statistics and Probability
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows:
|
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: |
|
Standard |
Standard Price |
Standard |
|||||
|
Direct materials (clay) |
1.50 |
lbs. |
$ |
1.60 |
per lb. |
$ |
2.40 |
|
Direct labor |
1.50 |
hrs. |
$ |
12.00 |
per hr. |
18.00 |
|
|
Variable manufacturing overhead |
1.50 |
hrs. |
$ |
1.20 |
per hr. |
1.80 |
|
|
Fixed manufacturing overhead ($250,000.00 ÷ 100,000.00 units) |
2.50 |
||||||
|
Barley Hopp had the following actual results last year: |
|
Number of units produced and sold |
110,000.00 |
|
|
Number of pounds of clay used |
178,200.00 |
|
|
Cost of clay |
$ |
267,300.00 |
|
Number of labor hours worked |
150,000.00 |
|
|
Direct labor cost |
$ |
2,025,000.00 |
|
Variable overhead cost |
$ |
200,000.00 |
|
Fixed overhead cost |
$ |
270,000.00 |
|
Required: |
|
1. |
Calculate the direct materials price, quantity, and total spending variances for Barley Hopp. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable and "U" for unfavorable.) |
Direct Materials price variance?
Direct materials quantity variance?
Direct materials spending variance?
|
2. |
Calculate the direct labor rate, efficiency, and total spending variances for Barley Hopp. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable and "U" for unfavorable.) |
Direct Labor Rate variance?
Direct Labor Efficiency variance?
Direct Labor Spending variance?
|
3. |
Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp. (Indicate the effect of each variance by selecting "F" for favorable/Overapplied and "U" for unfavorable/underapplied. |
Direct Overhead Rate variance?
Direct Overhead Efficiency variance?
Direct Overhead Spending variance?
In: Accounting
PA9-1 Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5]
Barley Hopp, Inc., manufactures custom-ordered commemorative
beer steins. Its standard cost information follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (clay) | 1.60 | lbs. | $ | 1.70 | per lb. | $ | 2.72 | |
| Direct labor | 1.60 | hrs. | $ | 16.00 | per hr. | 25.60 | ||
| Variable manufacturing overhead (based on direct labor hours) | 1.60 | hrs. | $ | 1.30 | per hr. | 2.08 | ||
| Fixed manufacturing overhead ($374,000.00 ÷ 170,000.00 units) | 2.20 | |||||||
Barley Hopp had the following actual results last year:
| Number of units produced and sold | 175,000 | |
| Number of pounds of clay used | 318,200 | |
| Cost of clay | $ | 572,760 |
| Number of labor hours worked | 220,000 | |
| Direct labor cost | $ | 4,510,000 |
| Variable overhead cost | $ | 340,000 |
| Fixed overhead cost | $ | 380,000 |
Required:
1. Calculate the direct materials price, quantity, and
total spending variances for Barley Hopp. (Do not round
your intermediate calculations. Indicate the effect of each
variance by selecting "F" for favorable and "U" for
unfavorable.)
|
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2. Calculate the direct labor rate, efficiency,
and total spending variances for Barley Hopp.
(Do not round your intermediate calculations. Indicate the
effect of each variance by selecting "F" for favorable and "U" for
unfavorable.)
|
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3. Calculate the variable overhead rate,
efficiency, and total spending variances for Barley
Hopp.(Do not round your intermediate
calculations. Indicate the effect of each variance by selecting "F"
for favorable/Overapplied and "U" for
unfavorable/underapplied.)
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In: Accounting
| Problem #2: Standard Costing | ||||||
| Ultra, Inc. manufactures and sells a full line of sunglasses. The company uses a standard cost system. Department | ||||||
| managers' are held responsible for the explanation of the variances in their department performance reports. | ||||||
| Recently, the variances in the Prestige line of sunglasses have been of concern. Data for the month of August is | ||||||
| presented below. Assume beginning and ending inventory levels for WiP and FG are zero. | ||||||
| Static Budget | Actual | |||||
| revenues | $600,000 | $625,000 | ||||
| DM | $150,000 | $163,400 | ||||
| DL | $135,000 | $138,700 | ||||
| FOH (cost driver = DL hours) | $114,000 | $121,000 | ||||
| gross profit | $201,000 | $201,900 | ||||
| selling price per Prestige sunglass | $76.92 | $76.22 | ||||
| DM (total # ounces) | 15,600 | 16,100 | ||||
| DL rate ($ per DL hour) | $18.00 | $19.55 | ||||
| (1) | Prepare the journal entry for the purchase of DM. Assume DM ourchases = DM used. (2 points) | |||||
| DM inventory | ||||||
| DM spending variance | ||||||
| accounts payable | ||||||
| (2) | Prepare the journal entry for the release of DM into production. (2 points) | |||||
| WiP inventory | ||||||
| DM efficiency variance | ||||||
| DM inventory | ||||||
| (3) | Prepare the journal entries for DL. (4 points) | |||||
| DL expense | ||||||
| wages payable | ||||||
| WiP inventory | ||||||
| DL efficiency variance | ||||||
| DL spending variance | ||||||
| DL expense | ||||||
| (4) | Prepare the journal entries for FOH. (4 points) | |||||
| FOH expenses | ||||||
| accounts payable | ||||||
| mfg FOH control | ||||||
| FOH expenses | ||||||
| WiP inventory | ||||||
| mfg FOH control | ||||||
| mfg FOH control | ||||||
| FOH volume variance | ||||||
| FOH spending variance | ||||||
| (5) | Prepare the adjusting entries to close out the variance accounts. (4 points) | |||||
| DM spending variance | ||||||
| CGS | ||||||
| DM efficiency variance | ||||||
| CGS | ||||||
| DL spending variance | ||||||
| CGS | ||||||
| DL efficiency variances | ||||||
| CGS | ||||||
| FOH volume variance | ||||||
| CGS | ||||||
| FOH spending variance | ||||||
| CGS | ||||||
| (6) | Complete the CGS T-Account below. (4 points) | |||||
| CGS | ||||||
| DM @ std | ||||||
| DL @ std | ||||||
| FOH @ std | ||||||
| Adjustments to CGS | ||||||
| Adjusted CGS | ||||||
In: Accounting
Bullseye Company manufactures dartboards. Its standard cost
information follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (cork board) | 2.50 | sq. ft. | $ | 2.30 | per sq. ft. | $ | 5.75 | |
| Direct labor | 1 | hrs. | $ | 16.00 | per hr. | 16.00 | ||
| Variable manufacturing overhead (based on direct labor hours) | 1 | hrs. | $ | 0.50 | per hr. | 0.50 | ||
| Fixed manufacturing overhead ($42,000 ÷ 210,000 units) | 0.20 | |||||||
Bullseye has the following actual results for the month of
September:
| Number of units produced and sold | 190,000 | |
| Number of square feet of corkboard used | 500,000 | |
| Cost of corkboard used | $ | 1,100,000 |
| Number of labor hours worked | 198,000 | |
| Direct labor cost | $ | 2,989,800 |
| Variable overhead cost | $ | 90,000 |
| Fixed overhead cost | $ | 64,000 |
Required:
1. Calculate the direct materials price, quantity, and
total spending variances for Bullseye. (Do not round your
intermediate calculations. Indicate the effect of each variance by
selecting "F" for favorable, "U" for unfavorable.)
| Direct Materials Price Variance | $ ? | U or F |
| Direct Materials Quantity Variance | $ ? | U or F |
| Direct Materials Spending Variance | $ ? | U or F |
2. Calculate the direct labor rate, efficiency,
and total spending variances for Bullseye.(Do not round
your intermediate calculations. Indicate the effect of each
variance by selecting "F" for favorable, "U" for
unfavorable.)
| Direct Labor Rate Variance | $ ? | U or F? |
| Direct Labor Efficiency Variance | $ ? | U or F? |
| Direct Labor Spending Variance | $ ? | U or F? |
3. Calculate the variable overhead rate, efficiency, and total
spending variances for Bullseye. (Do not round your
intermediate calculations. Indicate the effect of each variance by
selecting "F" for favorable/Overapplied and "U" for
unfavorable/underapplied.)
| Variable Overhead Rate Variance | $ ? | U or F? |
| Variable Overhead Efficiency Variance | $ ? | U or F? |
| Variable Overhead Spending Variance | $ ? | U or F? |
In: Accounting
1. Suppose that the model of the economy is given by
Y = C + I + G + X
C = a + b Yd
Yd = (1 – t)Y
X = g – mY
a. Derive the equilibrium GDP (Y) and the expenditure multiplier (Me ) expressed in general notations.
b. Suppose I = $900 billion, G = $1,200 billion, a = 220, b = 0.9, t = 0.3, g = 500, and m = 0.1. Solve for the equilibrium GDP (Y) and the expenditure multiplier (Me ) using your answers to part a.
c. Is the expenditure multiplier (Me ) with variable import spending (refer the numerical solution of Me from part b) larger or smaller than the expenditure multiplier (Me ) with fixed import spending? In addition to an algebra comparison, provide an intuition with your answer. Hint: The expenditure multiplier (Me ) with fixed import spending (i.e. constant X)) is 1 1−?(1−?) , in the problem, b = 0.9, t = 0.3.
d. Solve for private saving (Sp), government saving (Sg), and the rest of the world saving (Sr) when investment spending (I) is $900 billion.
2. Consider following simple closed economy (X = 0) and all taxes are fixed (a constant T):
Y = C + I + G
C = a + b Yd
Yd = Y – T
a. Derive the equilibrium GDP (Y), the expenditure multiplier (Me ), and the fixed tax multiplier (MT ) expressed in general notation.
b. Suppose government changes government spending G and fixed taxes T by the same amount (G = T). Derive the balanced budget multiplier, Y/G with G = T, using solutions of Me and MT from part a. [Hint] Y = meG + mTT
c. Illustrate the effect on income Y of a balanced budget increase in government spending and taxes (i.e., G=T>0) on the income expenditure (45 degree) diagram. Fully label your diagram.
In: Economics
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows:
| Raw materials | $ | 66,000 | |
| Work in process | $ | 33,600 | |
| Finished goods | $ | 38,400 | |
The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $13.50 per direct labor-hour was based on a cost formula that estimated $540,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:
a. Raw materials were purchased on account, $684,000.
b. Raw materials use in production, $646,400. All of of the raw materials were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $490,000; indirect labor, $150,000; selling and administrative salaries, $319,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $423,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $390,000.
f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
g. Jobs costing $1,623,300 to manufacture according to their job cost sheets were completed during the year.
h. Jobs were sold on account to customers during the year for a total of $3,547,500. The jobs cost $1,633,300 to manufacture according to their job cost sheets.
Required:
1. What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. What is the ending balance in Raw Materials?
3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
4. What is the total amount of manufacturing overhead applied to production during the year?
5. What is the total manufacturing cost added to Work in Process during the year?
6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
7. What is the ending balance in Work in Process?
8. What is the total amount of actual manufacturing overhead cost incurred during the year?
9. Is manufacturing overhead underapplied or overapplied for the year? By how much?
10. What is the cost of goods available for sale during the year?
11. What is the journal entry to record the cost of goods sold referred to in item h above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
12. What is the ending balance in Finished Goods?
13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?
14. What is the gross margin for the year?
15. What is the net operating income for the year?
In: Accounting
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows:
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|
|
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|
$ 59,400 |
The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $13.25 per direct labor-hour was based on a cost formula that estimated $530,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:
a. Raw materials were purchased on account, $708,000.
b. Raw materials use in production, $666,400. All of of the raw materials were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $480,000; indirect labor, $150,000; selling and administrative salaries, $335,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $397,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $380,000.
f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
g. Jobs costing $1,606,150 to manufacture according to their job cost sheets were completed during the year.
h. Jobs were sold on account to customers during the year for a total of $3,165,000. The jobs cost $1,616,150 to manufacture according to their job cost sheets
Required:
1. What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. What is the ending balance in Raw Materials?
3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
4. What is the total amount of manufacturing overhead applied to production during the year?
5. What is the total manufacturing cost added to Work in Process during the year?
6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
7. What is the ending balance in Work in Process?
8. What is the total amount of actual manufacturing overhead cost incurred during the year?
9. Is manufacturing overhead underapplied or overapplied for the year? By how much?
10. What is the cost of goods available for sale during the year?
11. What is the journal entry to record the cost of goods sold referred to in item h above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
12. What is the ending balance in Finished Goods?
13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?
14. What is the gross margin for the year?
15. What is the net operating income for the year?
In: Accounting