Towing Company has budgeted sales for the next six months as follows: Sales for Cash Sales on Account May $42,000 $257,000 June $37,000 $243,000 July $29,000 $238,000 August $48,000 $269,000 September $52,000 $251,000 October $45,000 $263,000 On average, 32% of the sales on account are collected in the month of sale, 40% are collected in the month following sale, 16% are collected in the second month following sale, 8% are collected in the third month following sale, and the remaining 4% is collected four months after the month of sale. Calculate Towing Company's budgeted accounts receivable at October 31.

Towing Company has budgeted sales for the next six months as follows: Sales for Cash Sales on Account May $42,000 $257,000 June $37,000 $243,000 July $29,000 $238,000 August $48,000 $251,000 September $52,000 $269,000 October $45,000 $263,000 On average, 32% of the sales on account are collected in the month of sale, 40% are collected in the month following sale, 16% are collected in the second month following sale, 9% are collected in the third month following sale, and the remaining 3% is collected four months after the month of sale. Calculate Towing Company's budgeted accounts receivable at October 31.

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows:

Raw materials used in production: Molding Department, $26,900; and Firing Department, $4,000.

Direct labor costs incurred: Molding Department, $17,000; and Firing Department, $4,500.

Manufacturing overhead was applied: Molding Department, $22,200; and Firing Department, $36,300.

Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company’s process costing system, the cost of the unfired, molded bricks was $67,900.

Finished bricks were transferred from the Firing Department to the finished goods warehouse. According to the company’s process costing system, the cost of the finished bricks was $108,600.

Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $104,900.

Required:

Prepare journal entries to record items (a) through (f) above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October:

The department started 396,000 units into production during the month and transferred 407,000 completed units to the next department.

Required:

Compute the equivalent units of production for October.

This exercise will be an application of the Hi-Lo method and its use in forecasting future costs:

The ZZ Company wants to forecast their utility costs for next year (2017). There is a relationship between the number of welds and the number of applications of glue and the total cost of utilities for the business. For 20x6 the activity and utility cost for the various months are as follows:

The forecasted activity for 20x7 is as follows:

Calculate the total forecasted utility cost for 2017 for the following:

The total utility cost for welds

The total utility cost for applications

The total utility cost

watercraft Supply CompanyIncome StatementFor the year Ended october 31, 2014Revenues:Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,350,000Interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000Total revenues................................................$1,365,000Expenses:Cost of merchandise sold.........................................$810,000Selling expenses.................................................140,000Administrative expenses .........................................90,000Interest expense................................................. 4,000Total expenses ............................................... 1,044,000Net income .......................................................$ 321,000Your sister is considering a proposal to increase net income by offering sales discounts of 2/15, n/30, and by shipping all merchandise FOB shipping point. Currently, no sales discounts are allowed and merchandise is shipped FOB destination. It is estimated that these credit terms will increase net sales by 10%. The ratio of the cost of merchandise sold to net sales is expected to be 60%. All selling and administrative expenses are expected to remain unchanged, except for store supplies, miscellaneous selling, office supplies, and miscellaneous administrative expenses, which are expected to increase proportion-ately with increased net sales. The amounts of these preceding items for the year ended October 31, 2014, were as follows:Store supplies expense$12,000Miscellaneous selling expense6,000Office supplies expense3,000Miscellaneous administrative expense2,500The other income and other expense items will remain unchanged. The shipment of all merchandise FOB shipping point will eliminate all delivery expenses, which for the year ended October 31, 2014, were $12,000.1.Prepare a projected single-step income statement for the year ending October 31, 2015, based on the proposal. Assume all sales are collected within the discount period.2.a. Based on the projected income statement in (1), would you recommend the implementation of the proposed changes?b.Describe any possible concerns you may have related to the proposed changes described in (1).

32. On February 15, Jewel Company buys 7,600 shares of Marcelo Corp. common stock at $28.59 per share plus a brokerage fee of $425. The stock is classified as available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.21 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.36 per share less a brokerage fee of $280. The fair value of the remaining shares is $29.56 per share. The impact on Jewel’s net income as a result of its investment in Marcelo Corp. was a(n) (Round your intermediate dollar values to the nearest dollar amount):

Multiple Choice

Increase to income of $3,474.

Increase to income of $11,630.

Decrease to income of $2,434.

Increase to income of $6,355.

Decrease to income of $9,196.

32B. Cameroon Corp. manufactures and sells electric staplers for $15.40 each. If 10,000 units were sold in December, and management forecasts 3% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be:

32. A sporting equipment store expects to purchase $8,700 of ski boots in October. The store had $2,300 of ski boots in merchandise inventory at the beginning of October, and expects to have $1,300 of ski boots in merchandise inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?

Comparison of Inventory Costing Methods—Perpetual System (Appendix)

Bitten Company's inventory records show 600 units on hand on October 1 with a unit cost of $5 each.

The following transactions occurred during the month of October:

All expenses other than cost of goods sold amount to $3,000 for the month. The company uses an estimated tax rate of 30% to accrue monthly income taxes.

Required:

1. Prepare a chart comparing cost of goods sold and ending inventory using the perpetual system and the following costing methods. In your calculations round moving average unit cost to three decimal places and round all other calculations and your final answers to the nearest dollar.

2. What does the Total column represent?

3. Prepare income statements for each of the three methods. When required, round your answers to the nearest dollar.

4. Will the company pay more or less tax if it uses FIFO rather than LIFO?

How much more or less?

Question 3

On Sept 15, 2017, Julia Inc entered into a contract to provide 12 new deep fryers to a Montreal Poutinerie. Julia normally charges $1,500 for each deep fryer. As part of the agreement, Julia will provide on-site training at the Poutinerie’s 3 locations. Julia will host 3 separate training sessions at each location. For this training, Julia normally charges $700 / day.  

The Poutinerie needed Julia’s team to re-work some electrical for the installation. This took Julia 6 hours at each location. When doing installation work normally, Julia charges $100/hour. The Poutinerie will pay Julia $25,000 in total.

The follow details are known:

The fryers were delivered on October 20, 2017

The fryers were installed between October 25 – October 31, 2017

The training was delivered on November 3 2017, November 5 2017, November 6 2017

Payments were made as follows:

$10,000 on September 30, 2017

$10,000 on October 25, 2017

$5,000 on November 20, 2017

Assume that Step 1 and 2 have been completed: There is a contract, and there are 3 separate performance obligations in the contract.

Complete steps 3 – 5 of the revenue recognition model under IFRS 15

Step 3 - Determine the Contract Price

Step 4 – Allocate the contract price to the performance obligations

Step 5 – Recognize Revenue

Note – you do not need to record the journal entries for step 5. Rather, you should discuss when to recognize revenue for each obligation.

This is the only information provided

Columbia Coco Beans Inc. sells two types of coffee, Regular and Decaf. The monthly budget for Canadian coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the Canadian market. The following information is provided for October: Budgeted Actual Regular Decaf Regular Decaf Price per kilogram $50 $60 $52 $60 Variable cost per kilogram 24 26 24 28 Contribution margin $26 $34 $28 $32 Sales (in kg) 4,000 4,500 3,700 4,800 Budgeted fixed costs are $58,000. Actual fixed costs are $62,000. Required: 1) Calculate the static-budget, flexible-budget and sales-volume variances for the contribution margin, for the company for October.

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Columbia Coco Beans Inc. sells two types of coffee, Regular and Decaf. The monthly budget for Canadian coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the Canadian market. The following information is provided for October:

Required:

1) Calculate the static-budget, flexible-budget and sales-volume variances for the contribution margin, for the company for October.

Budgeted fixed costs are $58,000. Actual fixed costs are $62,000.

The Polaris Company uses a job-order costing system. The following transactions occurred in October:

Raw materials purchased on account, $211,000.

Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials).

Accrued direct labor cost of $48,000 and indirect labor cost of $21,000.

Depreciation recorded on factory equipment, $105,000.

Other manufacturing overhead costs accrued during October, $131,000.

The company applies manufacturing overhead cost to production using a predetermined rate of $5 per machine-hour. A total of 76,300 machine-hours were used in October.

Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 22% above cost.

Required:

1. Prepare journal entries to record the transactions given above.

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $36,000.

Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $36,000.