A company produces two products XML, and ZML using two types of raw materials K and Q. The accountant is preparing budgets for the year ended 31 December 2012. Expectations for 2012 include the following:

1. Production and Sales

XML                ZML

                        Budgeted sales in units                              6 000              4 800

                        Budgeted unit selling price                        $500              $1 000

                        Opening stock finished goods

                        In units                                                600                 700

                        In dollars                                          $144 000       $182 000

                        Budgeted closing stock in units 1 250              650

Normal losses occur at the end of the production process and 5% of the outputs of both products have to be scrapped. It is company policy that stock of finished goods is valued on a first in first out basis. There is no opening or closing work in progress.

2. Direct materials

K                     Q

             Raw materials per unit of

production

                        XML                                                    10kg               5kg

                        ZML                                                    6kg                  8kg

                                                                                    XML                ZML

                        Opening stock of raw materials

                        In kg                                                   20 000            10 000

                        In dollars                                            200 000          120 000

                        Budgeted closing stock in kg        12 000            12 000

                        Budgeted purchase price per kg $10                 $12

3. Direct Labour

Standard direct labour time required for producing one unit of XML and ZML are 30 minutes and 45 minutes respectively. Labour is paid at the rate of $120 per hour.

4. Factory overheads

The budgeted factory overheads for the year 2012 are $362 500. These overheads are to be absorbed in the production cost on a direct labour hour basis.

            Required

            Prepare the following budgets for the year ended 31 December 2012:

            (a)       Sales budget for each of the two products                                              [2]

            (b)       Production budget (in units) for each of the two products.                  [4]

(c)        Direct material purchases budget for each of the two materials         [3]

(d)       Direct labour budget for each of the two products                                 [2]

(e)       Pre-determined factory overhead absorption rate                                  [1]

(f)        Factory cost of goods produced showing all cost elements for each of the two products    [5]

(g)       Unit production cost for each of the two products, rounded to the nearest dollar      [1]

(h)       Budgeted cost of goods sold for each of the two products                   [3]

(i)         Explain the reason why some companies normally prepare the sales budget first among all functional budgets while the other companies start with the labour or other budget first in the budgetary planning process. [4]

Flow of Costs and Income Statement

Technology Accessories Inc. is a designer, manufacturer, and distributor of accessories for consumer electronic products. Early in 20Y3, the company began production of a leather cover for tablet computers, called the iLeather. The cover is made of stitched leather with a velvet interior and fits snugly around most tablet computers. In January, $780,000 was spent on developing marketing and advertising materials. For the first six months of 20Y3, the company spent an additional $1,406,000 promoting the iLeather. The product was ready for manufacture on January 21, 20Y3.

Technology Accessories Inc. uses a job order cost system to accumulate costs for the iLeather. Direct materials unit costs for the iLeather are as follows:

The actual production process for the iLeather is fairly straightforward. First, leather is brought to a cutting and stitching machine. The machine cuts the leather and stitches an exterior edge into the product. The machine requires one hour per 130 iLeathers.

After the iLeather is cut and stitched, it is brought to assembly, where assembly personnel affix the velvet interior and pack the iLeather for shipping. The direct labor cost for this work is $0.50 per unit.

The completed packages are then sold to retail outlets through a sales force. The sales force is compensated by a 20% commission on the wholesale price for all sales.

Total completed production was 510,000 units during the year. Other information is as follows:

Factory overhead cost is applied to jobs at the rate of $1,300 per machine hour. There were an additional 22,000 cut and stitched iLeathers waiting to be assembled on December 31, 20Y3.

In your computations, if required, round interim per unit costs to two decimal places and final answers to the nearest whole dollar.

Required:

1. Prepare an annual income statement for the iLeather product.

2. Determine the balances in the finished goods and work in process inventories for the iLeather product on December 31, 20Y3.

Flow of Costs and Income Statement

Technology Accessories Inc. is a designer, manufacturer, and distributor of accessories for consumer electronic products. Early in 20Y3, the company began production of a leather cover for tablet computers, called the iLeather. The cover is made of stitched leather with a velvet interior and fits snugly around most tablet computers. In January, $750,000 was spent on developing marketing and advertising materials. For the first six months of 20Y3, the company spent an additional $1,400,000 promoting the iLeather. The product was ready for manufacture on January 21, 20Y3.

Technology Accessories Inc. uses a job order cost system to accumulate costs for the iLeather. Direct materials unit costs for the iLeather are as follows:

The actual production process for the iLeather is fairly straightforward. First, leather is brought to a cutting and stitching machine. The machine cuts the leather and stitches an exterior edge into the product. The machine requires one hour per 125 iLeathers.

After the iLeather is cut and stitched, it is brought to assembly, where assembly personnel affix the velvet interior and pack the iLeather for shipping. The direct labor cost for this work is $0.50 per unit.

The completed packages are then sold to retail outlets through a sales force. The sales force is compensated by a 20% commission on the wholesale price for all sales.

Total completed production was 500,000 units during the year. Other information is as follows:

Factory overhead cost is applied to jobs at the rate of $1,250 per machine hour. There were an additional 22,000 cut and stitched iLeathers waiting to be assembled on December 31, 20Y3.

In your computations, if required, round interim per unit costs to two decimal places.

Required:

1. Prepare an annual income statement for the iLeather product.

What’s the procedure to find the finished good and work in process??????

Question 1 4 pts

The following account appears on the income statement of a merchandiser:

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Question 2 4 pts

Which of the following would we credit to record the purchase of merchandise inventory on account if the company uses a perpetual inventory system?

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Question 3 4 pts

On April 1, our company purchases $1,000 worth of merchandise inventory on credit with the terms 2/10, n/30. What is the amount we would credit to cash if we pay this invoice on April 20?

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Question 4 4 pts

Under FOB shipping, title to merchandise passes to the purchaser when:

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Question 5 4 pts

Our company sold merchandise on account with a cost of $700 for $1,000. Our company uses a perpetual inventory system. What account and amount would we credit to record the cost of the merchandise sold?

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Question 6 4 pts

Our company sold merchandise on account with a cost of $700 for $1,000. Our company uses a perpetual inventory system. What account and amount would we debit to record the cost of the merchandise sold?

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Question 7 4 pts

Which of the following appears on a multi-step income statement but not on a single-step income statement?

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Question 8 4 pts

What is the recommended inventory method for a company dealing in unique, high-priced inventory items?

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Question 9 4 pts

The two main inventory accounting systems are:

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Question 10 4 pts

A company purchased 10 units for $5 on January 3. It purchased 10 units for $7 each on February 28. It sold 10 units on March 1. If the company uses the first in, first out (FIFO) inventory costing method, what is the dollar amount for ending inventory on the December 31 balance sheet, assuming that the company uses a perpetual inventory system?

PLEASE ANSWER ALL THE QUESTIONS ...ITS FOR THE EXAM THANK YOU

IN MY SQL:

- Display each Author’s ID, first and last names and the total number of pages for all of the Books they have written.

- Display each Book genre as well as the number of Books written in that genre with the column header “Number Of Books”

- Display the Author’s first and last name, as well as their ID, and the Book title and number of pages for all of the books they have written that have more than the average number of pages for all of the books that have been written, listed by author’s first and last name along with the book title, and the book’s number of pages.

- Display the Author’s or Authors’ ID, first and last name of the Author who has the most Books in the Coastal Publishing database.

LINK TO WHAT THE SETUP AND INSERTS LOOK LIKE:

https://docs.google.com/document/d/1Qb30rS-g03pUBBFGBRwq-f9L8CsHY0Dz_HKpt_lt9uM/edit?usp=sharing

A.   Job OrderCosting would be most suitable to account for the manufacture of:

a. buildings

b. breakfast cereal

c. motor cars

d. computer keyboards

B. For which of the following products is a process costing system most appropriate?

a. breakfast cereal

b. automobiles

c. houses

d. furniture

C. Cost of Goods Manufactured (COGM) is needed to calculate:

a. Cost of Sales (COS)

b. Factory overhead rate

c. Direct materials used

d. Finished goods inventory

D. Which of the following is an inventory account of a manufacturer, but not of a retailer (eg. supermarket)?

a. Cost of goods manufactured (COGM)

b. Products inventory

c. Work in Progress (WIP)

d. Direct labour (wages)

E. What purpose does a Job Cost Sheet / Record serve?

a. Lists total materials, labour, and overhead costs charged to a job

b. Is management’s internal document that helps to control cost in a job cost system

c. Both of the above ( a&b)

d. None of the above

F. A key difference between job order costing and process costing is that:

a. Costs are assigned to direct materials in job costing and to indirect materials in process costing

b. Job costing uses a single work in process account and process costing uses a separate work in process account            for each department

c. Job order costing, but not process costing, uses conversion costs

d. Factory overhead is used in process costing but not in job order costing.

G. Which of the following is a period cost?

a. Materials

b. Direct Labour

c. Factory Overhead

d. Selling and Marketing Expenses

H. In process costing, lost units in production will

            Choose: (increase) (decrease) (no change) (equivalent-unit costs).

I. Work in process (WIP) considerations are relevant in job order costing.:

True / False

Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$10 per share. Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax. Wilson's compensation expense in 2021 for these stock options was: A. $0. B. $200 million. C. $400 million. D. $800 million

On January 1, 2020, Sheridan Company purchased 11% bonds, having a maturity value of $301,000 for $324,415.24. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Sheridan Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.

ONE Buyer Co. bought a used machine from Seller Co. on January 1, 2021, by paying $30,000 down and giving Seller a $75,000 non-interesting bearing note due in five annual installments of $15,000 each on every December 31 starting in 2021. An assumed interest rate of 8% is implicit in the purchase price. Seller had originally paid $120,000 for the machine, and its book value at the date of sale was $85,000. Required—Prepare all note-related entries that Seller and Buyer should record in fiscal 2021.

TWO Refer to the facts above for Buyer and Seller. Required—Repeat the above requirement assuming the same facts as given except that the $75,000 note that Buyer gave Seller bears interest of 6% payable annually and is due in full on December 31, 2025.