Closing the Balances in The Variance Accounts at the End of the Year

Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end:

Unadjusted Cost of Goods Sold equals $1,550,000, unadjusted Work in Process equals $276,000, and unadjusted Finished Goods equals $280,000.

Required:

1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cost of Goods Sold. Note: Close the variances with a debit balance first. If an amount box does not require an entry, leave it blank or enter "0".

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Companies must restate costs and inventories at the end of the year to actual cost. So, variance accounts must be closed out and their balances applied to Cost of Goods Sold (if immaterial) or prorated among Cost of Goods Sold, Work in Process, and Finished Goods.

What is the adjusted balance in Cost of Goods Sold after closing out the variances?

$

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Companies must restate costs and inventories at the end of the year to actual cost. So, variance accounts must be closed out and their balances applied to Cost of Goods Sold (if immaterial) or prorated among Cost of Goods Sold, Work in Process, and Finished Goods.

2. What if any ending balance in a variance account that exceeds $9,000 is considered material? (a) Close the immaterial variance accounts to Cost of Goods Sold. (b) Prorate the largest of the labor variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. (c) Prorate the largest of the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is $1,060,000, the prime cost in Work in Process is $166,000, and the prime cost in Finished Goods is $133,000. If an amount box does not require an entry, leave it blank or enter "0".

Note: Round all interim calculations to three decimal places, and round your final answers to the nearest dollar. Adjust credit entry for rounding to ensure debits equal credits in journal entry.

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See Cornerstone 9.5.

What are the adjusted balances in Work in Process, Finished Goods, and Cost of Goods Sold after closing out all variances?

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See Cornerstone

For each merchandising transaction below, for Alpha Betts Co. (ABC), determine what recording would be necessary first assuming (i) a periodic inventory system and then assuming (ii) a perpetual inventory system. (Assume the gross method for any purchase discounts or sales discounts.) (a) On March 6th, ABC purchased $380 of goods from Gamma Vending on account, with terms of 1/15, n60. (b) On March 7th, ABC sold merchandise for $200 to Customer A on account. (ABC offers the same terms to all customers for sales on account: 2/10, n30.) (Where necessary, assume the cost of these goods is $130.) (c) On March 9th, ABC purchased $1,000 of goods from Iota Sourcing on account, with terms of 2/5, n45. (d) On March 10th, ABC returned goods costing $80 to Gamma Vending because they damaged beyond repair. (e) On March 11th, ABC purchased $700 of goods from Psi Supply on account, with terms n30. (f) On March 15th, ABC received payment from Customer A. (g) On March 17th, ABC paid the balance due to Gamma Vending. (h) On March 19th, ABC sold merchandise for $400 to Customer B on account. (Where necessary, assume the cost of these goods is $225.) (i) On March 20th, ABC paid the balances due to both Iota Sourcing and Psi Supply. (j) On March 22nd, Customer B returned $60 of goods (with an assumed cost to ABC of $40) that were not to specification. (k) On March 31st, ABC received payment from Customer B?

Selected transactions follow for Covington Sports Ltd. during the company’s first month of business. The company expects a return rate of 8% and uses a perpetual inventory system.

(a)

Prepare the journal entries to record each of the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to the nearest whole dollar, e.g. 5,275.)

chief Complaint: 40-year-old man with a cough and dyspnea. History: Joe Butt, a 40-year-old white male with a 52-pack-year smoking history suffered from chronic bronchitis. For the last several months he has been on an antibiotics treatment. Three weeks ago, his otherwise normal smoker’s cough started producing bloody sputum ("hemoptysis"). In the past week Joe has become increasingly short of breath ("dyspnea"). A routine chest X-ray revealed a couple of quarter-sized opacities in his right lung around the alveoli. Bronchoscopic examination revealed the tumors were nearly occluding two major bronchioles in his right lung. A bronchial biopsy revealed the diagnosis: bronchogenic carcinoma. Questions: 1. What is "bronchogenic carcinoma"? What medical professional most likely confirmed the nature of the biopsy? 2. Describe the structure of the bronchial epithelium. How many layers of cells make up this tissue? 3. Describe what the “mucociliary escalator" is and it’s function in the respiratory system. 4. What two conditions do you think have led to Joe experiencing a shortness of breath ("dyspnea")? 5. What is the most likely or common way that this type of cancer may metastasize (i.e. spreading to other parts of the body)?

Based on what you have read and discussed this week, what would be the most important elements that you could share with a hiring manager in the limited 5 minutes she has available to talk? With this in mind, develop a script for your 5-Minute Pitch as your first professional reflection that cohesively addresses the following:

• After synthesizing the Discussion Board posts with this week’s resources, identify the three most important attributes—skills, behaviors, and characteristics—of effective managers and why you have selected these attributes, based on what you believe managers do.

Your company is considering investing in one of two mutually exclusive projects. The cost of capital is 11%. The first project Has $25,000 annual cash inflows, a 10-year life, and will cost $120,000 at time zero. The second project has a 7-year life, Annual cash inflows of $20,000 per year, and a cost of $75,000 at time zero. Which project has the highest NPV. Assuming that these projects will most likely be repeated indefinitely into the future, which project would add the most value to the company? Justify your answer using the EAA

Your company is considering investing in one of two mutually exclusive projects. The cost of capital is 11%. The first project Has $25,000 annual cash inflows, a 10-year life, and will cost $120,000 at time zero. The second project has a 7-year life, Annual cash inflows of $20,000 per year, and a cost of $75,000 at time zero. Which project has the highest NPV. Assuming that these projects will most likely be repeated indefinitely into the future, which project would add the most value to the company? Justify your answer using the EAA

2.How would you differentiate between a Webcast and a Webinar? Describe a scenario in which the use of a Webcast would be appropriate. Describe a scenario in which the use of a Webinar would be appropriate.

4.What are some potential legal and privacy issues that could arise when posting to a corporate blog? Discuss how you are protected by the First Amendment when posting to a corporate blog.

6. Which features of online project management software are most important to you in managing a project? Describe specific capabilities that you think add the most value.

Advertising expense $22,250                                       Direct labor $564,500

Depreciation expense – Office Equip $10,440            Income taxes expense $138,700

Depreciation expense – Selling Equip. $ 12,125          Indirect labor $61,000

Depreciation expense – Factory Equip. $37,400          Misc. Production costs $10,400

Factory supervision $123,400                                       Office salaries expense $ 72,875

Factory supplies used (indirect materials) $8,060         Raw Materials purchased $896,375

Factory utilities $39,500                                                 Rent expense- office $25,625

INVENTORIES:                                                              Rent expense- selling space $29,000

Raw Materials, Dec 31, 2018 $42,375                            Rent expense- factory building $95,500

Raw Materials, Dec 31, 2019 $72,430                            Maintenance expense- factory $32,375

Goods-in-Process, Dec 31, 2018 $14,500                      Sales $5,002,000

Goods-in-Process, Dec 31, 2019 $16,100                      Sales discounts $59,375

Finished Goods, Dec 31, 2018 $179,200                       Sales salaries expense $297,300

Finished Goods, Dec 31, 2019 $143,750

1. Prepare Income Statement

5. Prepare the following journal entries from the information in the table above. You may complete the journal entries first, then go back and finish filling in the T-accounts in requirement #4 if this helps you work through this problem.

   Record the following transactions:

   1. Purchases of raw materials inventory on account for the year.

   2. Assignment of materials costs to Goods-in-Process Inventory (all materials are

      considered direct).

   3. Payment of Factory Payroll in cash.

   4. Assignment of Factory Payroll to Goods-in-Process Inventory and Factory Overhead.

   5. Record all other Factory Overhead. Assume everything except Depreciation is paid

      in cash.

   6. Assignment of Factory Overhead to Goods-in-Process Inventory, assuming the

      company uses a POHR of 75%

   7. Transfer of goods completed to Finished Goods Inventory.

   8. Recording of Cost of Goods Sold.

   9. Make your adjusting entry for any over- or under-applied Factory Overhead.

Can you please just help me with the Income Statement Please.