The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:

The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $7,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of $35,000, marketable securities of $50,000, and accounts receivable of $103,200 ($81,000 from July sales and $22,200 from August sales). Sales on account for July and August were $74,000 and $81,000, respectively. Current liabilities as of September 1 include $7,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $13,000 will be made in October. Bridgeport’s regular quarterly dividend of $7,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $34,000. 1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Assume 360 days per year for interest calculations.

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

1. Raw materials purchased on account, $210,000.
2. Raw materials used in production, $190,000 ($178,000 direct materials and $12,000 indirect materials).
3. Accrued direct labor cost of $90,000 and indirect labor cost of $110,000.
4. Depreciation recorded on factory equipment, $40,000.
5. Other manufacturing overhead costs accrued during October, $70,000.
6. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October.
7. Jobs costing $520,000 according to their job cost sheets were completed during October and transferred to Finish Goods.
8. Jobs that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 25% above cost.

Required:

1. Post the relevant transactions from above to each T account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000.

Is the Manufacturing Overhead account over or under applied and by how much

Provide the Ending Balance for Each T-Account

Raw Materials Inventory BLANK-1 DEBIT

Work in Process Inventory BLANK-2 DEBIT

Manufacturing Overhead BLANK-3 CREDIT

Finished Goods Inventory BLANK-4 DEBIT

Accounts Receivable BLANK-5 DEBIT

Accumulated Depreciation BLANK-6 CREDIT

Accounts Payable BLANK-7 CREDIT

Salary Payable BLANK-8 CREDIT

Sales Revenue BLANK-9 CREDIT

Cost of Goods Sold BLANK-10 DEBIT

The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $145,000 $181,000 $232,000 Manufacturing costs 61,000 78,000 84,000 Selling and administrative expenses 51,000 54,000 88,000 Capital expenditures _ _ 56,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $10,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of $55,000, marketable securities of $78,000, and accounts receivable of $161,800 ($127,000 from July sales and $34,800 from August sales). Sales on account for July and August were $116,000 and $127,000, respectively. Current liabilities as of September 1 include $10,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $22,000 will be made in October. Bridgeport’s regular quarterly dividend of $10,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $54,000. Required: 1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Assume 360 days per year for interest calculations.

Pacific Ink had beginning work-in-process inventory of $890,960 on October 1. Of this amount, $358,200 was the cost of direct materials and $532,760 was the cost of conversion. The 62,000 units in the beginning inventory were 25 percent complete with respect to both direct materials and conversion costs.

During October, 130,000 units were transferred out and 44,000 remained in ending inventory. The units in ending inventory were 75 percent complete with respect to direct materials and 35 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,304,000 for direct materials and $4,130,820 for conversion.

Pacific Ink had beginning work-in-process inventory of $905,260 on October 1. Of this amount, $371,520 was the cost of direct materials and $533,740 was the cost of conversion.The 56,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs.

During October, 118,000 units were transferred out and 38,000 remained in ending inventory.The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $2,895,200 for direct materials and $3,631,680 for conversion.

(1) Compute the equivalent units for the materials and conversion cost calculations.

(2) Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method. (Round your answers to 2 decimal places.)

The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budgetinformation:

The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $9,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month.

Current assets as of September 1 include cash of $52,000, marketable securities of $74,000, and accounts receivable of $153,000 ($33,000 from July sales and $120,000 from August sales). Sales on account for July and August were $110,000 and $120,000, respectively. Current liabilities as of September 1 include $9,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $20,000 will be made in October. Bridgeport’s regular quarterly dividend of $9,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $51,000.

Required:

1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Assume 360 days per year for interest calculations.

Please, read the question carefully. I need correct answers and clear explanation. Thank you!

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.

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

1. Raw materials purchased on account, $210,000.
2. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials).
3. Accrued direct labor cost of $49,000 and indirect labor cost of $20,000.
4. Depreciation recorded on factory equipment, $106,000.
5. Other manufacturing overhead costs accrued during October, $129,000.
6. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,300 machine-hours were used in October.
7. Jobs costing $512,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
8. Jobs that had cost $451,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 34% 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 $34,000.

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 $34,000.

Manufacturing overhead

Work in process

The following table shows your neighorhood’s demand for drinking water. Assume that only two firms (Waterland and Aquataste) produce and sell water in this market. Each firm offers the same quality, no fixed costs are incurred in the production of water, and each firm’s marginal cost is constant and equal to $0 because both companies can pump as much water as needed without cost. Because marginal cost is constant and equal to $0, total revenue is equal to total profit.

Assume Waterland and Aquataste make a nonbinding, informal agreement that each will produce 250 gallons of water, charge $1.50 per gallon, and evenly split the profit of $750.

1st attempt

Part 1   (0.5 point)

See Hint

If Aquataste sticks to the agreement, Waterland has an incentive to renege on the agreement by producing 350 gallons because Waterland’s profits would then increase from $375 to   $  . (Provide your answer to two decimal places.)

Part 2   (0.5 point)

If Aquataste reneges on the agreement and produces 350 gallons, Waterland has an incentive to renege on the agreement by producing 350 gallons because Waterland’s profits would increase to   $  , which is better than the $312.50 Waterland would earn by sticking with the agreement. (Provide your answer to two decimal places.)

The cash account for Brentwood Bike Co. at May 1, indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks written totaled $138,880. The bank statement indicated a balance of $43,525 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

Alfred owned a term life insurance policy at the time he was diagnosed as having a terminal illness. After paying $76,700 in premiums, he sold the policy to a company that is authorized by the state of South Carolina to purchase such policies. The company paid Alfred $536,900. When Alfred died 18 months later, the company collected the face amount of the policy, $644,280. Alfred is required to include ______in his gross income as a result of the sale of the policy?