Preparing a Schedule of Cost of Finished Goods Manufactured, Cost of Goods Sold Schedule, and an Income Statement.
Listed below is information related to RRR Co’s manufacturing activities for the month of October 2020.
Ending Balance Beginning Balance
Materials Inventory $197,000 $ 211,000
Work in Process Inventory 59,000 78,000
Finished Goods Inventory 91,000 82,000
During October 2020, RRR Company purchased $105,000 of raw materials and incurred direct labor costs of $77,100. The company applies overhead at a rate of 45% of direct labor cost. General, selling and administrative costs amounted to $36,100, and the company sold 39,400 units of its product at a price of $37.84 each.
Directions:
In: Accounting
Hot dogs and ketchup are complement goods, and hot dogs and hamburgers are substitute goods. A decrease in the price of ketchup _____ the number of hot dogs consumers want to buy; an increase in the price of hamburgers _____ the number of hot dogs consumers want to buy. Question 24 options: a) increases; decreases b) decreases; increases c) decreases; decreases d) increases; increases
In: Economics
A buyer purchases goods from an online seller. The goods will be delivered from the seller to the buyer under a shipment contract. The title to the goods will pass from the seller to the buyer when...
(a) seller delivers the goods to the carrier
(b) goods arrive at the buyer's stetted address
(c) buyer takes actual possession of the goods
(d) buyer receives a receipt from the seller
(e) buyer pays the seller for the goods
In: Accounting
A buyer purchases goods from an online seller. The goods will be delivered from the seller to the buyer under a shipment contract. The title to the goods will pass from the seller to the buyer when
Select one:
a. seller delivers the goods to the carrier
b. goods arrive at the buyer's stated address
c. buyer takes actual possession of the goods
d. buyer receives a receipt from the seller
e. buyer pays the seller for the goods
In: Accounting
Buyer and seller of goods enter into a shipment contract for delivery of the goods by carrier to the buyer. Title of these goods passes to the buyer when the (a) seller hands over the goods to the carrier (b) buyer takes the actual delivery of the goods (c) buyer receives a receipt for the goods (d) all of the above
In: Accounting
If two goods are perfect substitutes, both goods are produced
with increasing marginal
cost, and for some reason the marginal cost of producing one of the
two goods go up, but
the marginal cost of producing the other good stay the same, what
is the effect on the
equilibrium prices of the two goods? Explain your answer
carefully.
In: Economics
4. Consider an instance of the Specific Factors model with two goods – Agricultural goods (A) and Manufactured goods (M) – and three productive factors – Labour (L), Capital (C) and Land (T). What are the assumptions of the Specific Factors model? What are the gains and losses of trade within the Specific Factor model? Provide graphs and formulas if possible.
In: Finance
20a)
|
________ goods are those that firms buy for use as inputs in producing other goods or services and they ________ counted in GDP. |
| Final; are not |
| Intermediate; are |
| Final; are Final; are |
| Intermediate; are not |
b)
|
Exland’s gross domestic product is the nominal value of which of the following? |
| Final production by Exland’s resources |
| Final production within Exland’s borders |
| Production within Exland’s borders |
| Production by Exland’s resources |
c)
|
Many residents of West Virginia cross the border to work in Kentucky although few Kentuckians work in West Virginia. We should expect that West Virginia’s state GDP will be ________ than its GNP and that Kentucky’s state GDP will be ________than its GNP. |
| greater; smaller |
| smaller; greater |
| greater; greater |
| smaller; smaller |
d)In the national income accounts, the construction of a new residence is counted as __________ and the value of the services it provides is counted as ___________.
| investment; consumption |
| consumption; investment |
| consumption; consumption |
| investment; investment |
e)Which of the following is included in the government purchases component of GDP?
| Pay of active-duty soldiers |
| Veterans’ benefits paid to disabled former soldiers |
| Unemployment benefits to civilian workers |
| Both A and B, but not C |
In: Economics
Finished Goods and Cost of Goods Sold
Before the completed production for June is recorded, the work in process inventory account for James Company appears as follows:
| Work in Process Inventory | |
|---|---|
| Balance June 1 | $88,000 |
| Direct material | 247,500 |
| Direct labor | 176,000 |
| Manufacturing overhead applied | 187,000 |
Assume that completed production for June includes Jobs 107, 108, and 109 with total costs of $154,000, $324,500, and $137,500, respectively.
a. Determine the cost of unfinished jobs at June 30 and prepare a journal entry to record completed production.
Work in process balance as of June 30 $Answer
| General Journal | ||
|---|---|---|
| Description | Debit | Credit |
| AnswerAccounts receivableCost of goods soldFinished goods inventorySalesWork in process inventory | Answer | Answer |
| AnswerAccounts receivableCost of goods soldFinished goods inventorySalesWork in process inventory | Answer | Answer |
b. Using general journal entries, record the sale of Job 107 for $220,000 on account.
| General Journal | ||
|---|---|---|
| Description | Debit | Credit |
| AnswerAccounts receivableCost of goods soldFinished goods inventorySalesWork in process inventory | Answer | Answer |
| AnswerAccounts receivableCost of goods soldFinished goods inventorySalesWork in process inventory | Answer | Answer |
| To transfer cost to expense. | ||
| AnswerAccounts receivableCost of goods soldFinished goods inventorySalesWork in process inventory | Answer | Answer |
| AnswerAccounts receivableCost of goods soldFinished goods inventorySalesWork in process inventory | Answer | Answer |
| To record sale of job 107. | ||
In: Accounting
Preparing a Schedule of Cost of Finished Goods Manufactured, Cost of Goods Sold Schedule, and an Income Statement. Listed below is information related to Danbury Co’s manufacturing activities for the month of July 2016. Ending Balance Beginning Balance Materials Inventory $7,500 $ 6,000 Goods in Process Inventory 11,000 2,000 Finished Goods Inventory 10,000 9,000 During July 2016, Danbury Company purchased $20,000 of raw materials and incurred direct labor costs of $14,160. The company applies overhead at a rate of 50% of direct labor cost. General, selling and administrative costs amounted to $6,550, and the company sold 10,372 units of its product at a price of $5 each.
A) Prepare Danbury’s schedule of cost of finished goods manufactured for July 2016.
B) Determine Danbury’s cost of goods sold during July 2016.
C) Prepare Danbury’s income statement for the month ended July 31, 2018 (ignoring interest expense and income taxes)
In: Accounting