n February 2020, Oriole Construction signed a contract and
commenced construction on a parking garage. The total contract
price was $91.0 million and was expected to be completed in July
2022 at a total estimated cost of $82.4 million. Payment by the
customer was to be made in several stages, based on significant
events and dates throughout the construction timeline. Based on the
terms of the contract with the customer, control over the parking
garage (i.e. ownership) does not transfer to the customer until
completion. Oriole’s year-end was September 30 and follows
ASPE.
By the end of September, 2020, Oriole had incurred $8,240,000 in
costs and had invoiced $10,600,000 in progress billings. $8,200,000
of the progress billings had been collected.
By September 30, 2021, Oriole had incurred $43,230,000 in total
costs and had invoiced $45,400,000 in progress billings, including
the progress billings in 2020. Of the total billings, $30,600,000
in total had been collected. Also, Oriole reviewed its cost
estimates on the project, and now believed the parking garage would
cost $78.6 million in total to complete.
Using the completed-contract method, prepare all journal entries required for the year ended September 30, 2020. Use Materials, Cash, Payables for costs incurred to date. (Credit account titles are automatically indented when the 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.)
| No | Account title | Debit | Credit |
| 1 | |||
| (to record 2020 cost of construction | |||
| 2 | |||
| to record the 2020 progress billings | |||
| 3 | |||
| to record the 2020 cash collection |
Using the completed-contract method, prepare all journal entries required for the year ended September 30, 2021. Use Materials, Cash, Payables for costs incurred to date. (Credit account titles are automatically indented when the 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.)
|
No. |
Account Titles and Explanation |
Debit |
Credit |
|
1. |
|||
|
(To record the 2021 cost of construction) |
|||
|
2. |
|||
|
(To record the 2021 progress billings) |
|||
|
3. |
|||
|
(To record the 2021 cash collections) |
Prepare the journal entry to record revenue and cost of construction on completion of the project, assuming all billings are completed and the total actual cost is the same as the 2021 estimate. Use Materials, Cash, Payables for costs incurred to date. (Credit account titles are automatically indented when the 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.)
|
Account Titles and Explanation |
Debit |
Credit |
|
(To record the 2022 cost of construction) |
||
|
(To record the 2022 progress billings) |
||
|
(To record the 2022 cash collections) |
||
|
(To record revenue, costs and gross profit of construction of parking garage) |
In: Accounting
The Foundational 15 [LO2-1, LO2-2, LO2-3, LO2-4]
[The following information applies to the questions displayed below.]
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):
| Molding | Fabrication | Total | |||||||
| Estimated total machine-hours used | 2,500 | 1,500 | 4,000 | ||||||
| Estimated total fixed manufacturing overhead | $ | 11,000 | $ | 15,600 | $ | 26,600 | |||
| Estimated variable manufacturing overhead per machine-hour | $ | 1.80 | $ | 2.60 | |||||
| Job P | Job Q | |||||
| Direct materials | $ | 17,000 | $ | 10,000 | ||
| Direct labor cost | $ | 24,200 | $ | 9,100 | ||
| Actual machine-hours used: | ||||||
| Molding | 2,100 | 1,200 | ||||
| Fabrication | 1,000 | 1,300 | ||||
| Total | 3,100 | 2,500 | ||||
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required:
For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.
1. What was the company’s plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)
2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)
3. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.)
4. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
5. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.)
6. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
8. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)
In: Accounting
|
Assets: |
|
|
Current Assets: |
|
|
cash |
$100,000 |
|
Unclaimed payroll checks |
27,500 |
|
Securities at cost (fair value $ 30,000) |
37,000 |
|
Accounts receivable (minus provision for bad debts) |
75,000 |
|
Inventory (cost or market whichever is lower) |
240,000 |
|
Total assets |
479,500 |
|
Tangible assets: |
|
|
Land (minus accumulated depreciation) |
80,000 |
|
Buildings (net) |
550,000 |
|
Net tangible assets |
630,000 |
|
Total long-term investments: |
|
|
Stocks and bonds |
100,000 |
|
Treasury stocks |
70,000 |
|
Total long-term investments |
170,000 |
|
Other assets: |
|
|
Discount on bonds payable |
19,400 |
|
reserve |
975,000 |
|
Other total assets |
994,000 |
|
Total assets |
2,273,900 |
2- mention the above balance sheet determinants? clarify with the explanation.
3- Discuss the ethical issue related to the way the above balance sheet was classified?
4- Make your opinion on the completeness and comprehensiveness of the above balance sheet.
In: Accounting
In: Accounting
Cournot duopolists face a market demand curve given by P = 90 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. There are no fixed cost. (Just need B through C answer please)
a. Find the equilibrium price, quantity and economic profit for the total market, consumer surplus and Dead weight loss
b. If the duopolists in question above behave, instead, according to the Bertrand model, what will be the equilibrium price, quantity and economic profit for the total market, consumer surplus and Dead weight loss
c. If the duopolists in question above behave according to the Stackelberg Leader-Follower model, what will be the equilibrium price, quantity and economic profit for the total market, consumer surplus and Dead weight loss (dupolists is the leader)
d. If the duopolists in question above behave as a shared monopoly what will be the equilibrium price, quantity and economic profit for the total market, consumer surplus and Dead weight loss
In: Economics
C++! Becareful following the test case.
7. Inventory
Class
Design an Inventory class that can hold information for an item in
a retail store’s inventory.
The class should have the following private member variables.
Variable
Name Description
itemNumber An int that holds the item’s number.
quantity
An int that holds the quantity of the item on hand.
cost A double that holds the wholesale per-unit cost
of the item
The class should have the following public member functions
Member
Function
Description
default
constructor
Sets all the member variables to 0.
constructor #2
Accepts an item’s number, quantity, and cost as arguments. Calls
other class functions to copy these values into the appropriate
member variables. Then calls the setTotalCost function.
setItemNumber Accepts an int argument and
copies it into the itemNumber member variable.
setQuantity
Accepts an int argument and copies it into the
quantity member variable.
setCost Accepts a double argument and copies it into
the cost member variable.
getItemNumber Returns the value in
itemNumber.
getQuantity
Returns the
value in quantity.
getCost
Returns the value in cost.
getTotalCost Computes and returns the totalCost.
Demonstrate the class
by writing a simple program that uses it. This program should
validate
the user inputs to ensure that negative values are not accepted for
item number, quantity, or cost.
Here, your objective is to Create three objects and display their contents. See the following code segment. Here is detail explaination.
1. You create the First object which uses the default constructor. The default constructor initializes all data to 0. You can use the following code to do this.
Inventory part1; // This uses default constructor
2. Second object is created and initialized with the programmer hard coded data as follows:
int i = 1234;
int q = 10;
double p = 2.5;
Inventory part2(i, q, p);
3. To create the third object, you need to collect the data from the user. Once you collect the data from the user, insert this data into the object.
Once you create all the above three objects, all you have to do is to display the contents of the object.
Here are the test cases:
Test Case1:
Enter data for the new
item
Item number: 123
Quantity: 30
Price: 20
Part Number : 0
Units On Hand : 0
Price : $0.00
Total Cost : $0.00
Part Number :
1234
Units On Hand : 10
Price : $2.50
Total Cost : $25.00
Part Number :
123
Units On Hand : 30
Price : $20.00
Total Cost : $600.00
Test Case2:
Enter data for the new
item
Item number: 342
Quantity: -2
Value must be greater than zero: 50
Price: -20
Value must be greater than zero: 30
Part Number : 0
Units On Hand : 0
Price : $0.00
Total Cost : $0.00
Part Number :
1234
Units On Hand : 10
Price : $2.50
Total Cost : $25.00
Part Number :
342
Units On Hand : 50
Price : $30.00
Total Cost : $1500.00
In: Computer Science
Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies all indirect costs according to a predetermined rate based on direct labor-hours. A consultant recently suggested that the company switch to an activity-based costing system and prepared the following cost estimates for year 2 for the recommended cost drivers.
| Activity | Recommended Cost Driver |
Estimated Cost |
Estimated Cost Driver Activity |
||||
| Processing orders | Number of orders | $ | 41,125 | 175 | orders | ||
| Setting up production | Number of production runs | 170,000 | 100 | runs | |||
| Handling materials | Pounds of materials used | 250,000 | 100,000 | pounds | |||
| Machine depreciation and maintenance | Machine-hours | 231,000 | 11,000 | hours | |||
| Performing quality control | Number of inspections | 68,500 | 50 | inspections | |||
| Packing | Number of units | 96,000 | 480,000 | units | |||
| Total estimated cost | $ | 856,625 | |||||
In addition, management estimated 7,700 direct labor-hours for year 2.
Assume that the following cost driver volumes occurred in January, year 2:
| Institutional | Standard | Silver | |||||||
| Number of units produced | 63,000 | 27,000 | 8,000 | ||||||
| Direct materials costs | $ | 37,000 | $ | 23,000 | $ | 13,000 | |||
| Direct labor-hours | 480 | 450 | 640 | ||||||
| Number of orders | 10 | 10 | 6 | ||||||
| Number of production runs | 2 | 4 | 6 | ||||||
| Pounds of material | 14,000 | 6,000 | 3,400 | ||||||
| Machine-hours | 610 | 160 | 100 | ||||||
| Number of inspections | 3 | 3 | 3 | ||||||
| Units shipped | 63,000 | 27,000 | 8,000 | ||||||
Actual labor costs were $14 per hour.
Required:
a.
(1) Compute a predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the consultant. (Round your answers to 2 decimal places.)
|
||||||||||||||||||||||
(2) Compute a predetermined rate for year 2 using direct labor-hours as the allocation base.
b. Compute the production costs for each product for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement a(2).(Do not round intermediate calculations.)
|
c. Compute the production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) (Do not round intermediate calculations.)
|
Thank you for your time and help!
In: Accounting
1. Pasadena Candle Inc. budgeted production of 45,000 candles for January. Each candle requires molding. Assume that two minutes are required to mold each candle. If molding labor costs $13 per hour, determine the direct labor cost budget for January.
Round total direct labor cost to the nearest dollar, if required.
| Pasadena Candle Inc. Direct Labor Cost Budget For the Month Ending January 31 |
||||
| Hours required for assembly: | ||||
| Candles | min. | |||
| Convert minutes to hours | ÷ | min. | ||
| Molding hours | hrs. | |||
| Hourly rate | × | $ | ||
| Total direct labor cost | $ | |||
2. Healthy Measures Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:
| Bath Scale | Gym Scale | |||
| Northern Region unit sales | 23,100 | 37,200 | ||
| Southern Region unit sales | 24,900 | 26,100 | ||
| Total | 48,000 | 63,300 | ||
The finished goods inventory estimated for March 1, for the Bath and Gym scale models is 1,600 and 2,100 units, respectively. The desired finished goods inventory for March 31 for the Bath and Gym scale models is 1,200 and 2,300 units, respectively.
Prepare a production budget for the Bath and Gym scales for the month ended March 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| Healthy Measures Inc. | ||
| Production Budget | ||
| For the Month Ending March 31 | ||
| Units Bath Scale | Units Gym Scale | |
| Expected units to be sold | ||
| Desired inventory, March 31 | ||
| Total units available | ||
| Estimated inventory, March 1 | ||
| Total units to be produced | ||
3. Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows:
| Junior | Pro Striker | |
| Production budget | 7,800 units | 19,800 units |
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
| Forming Department | Assembly Department | |
| Junior | 0.20 hour per unit | 0.50 hour per unit |
| Pro Striker | 0.30 hour per unit | 0.75 hour per unit |
The direct labor rate for each department is as follows:
| Forming Department | $19.00 per hour |
| Assembly Department | $9.00 per hour |
Prepare the direct labor cost budget for July.
| Ace Racket Company | ||
| Direct Labor Cost Budget | ||
| For the Month Ending July 31 | ||
| Forming Department | Assembly Department | |
| Hours required for production: | ||
| Junior | ||
| Pro Striker | ||
| Total | ||
| Hourly rate | x$ | x$ |
| Total direct labor cost | $ | $ |
4. Sweet Tooth Candy Company budgeted the following costs for anticipated production for August:
| Advertising expenses | $297,740 |
| Manufacturing supplies | 16,320 |
| Power and light | 48,670 |
| Sales commissions | 325,330 |
| Factory insurance | 28,340 |
| Production supervisor wages | 143,150 |
| Production control wages | 37,220 |
| Executive officer salaries | 303,470 |
| Materials management wages | 40,930 |
| Factory depreciation | 23,190 |
Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.
| Sweet Tooth Candy Company | ||
| Factory Overhead Cost Budget | ||
| For the Month Ending August 31 | ||
| Variable factory overhead costs: | ||
| Manufacturing supplies | $ | |
| Power and light | ||
| Production supervisor wages | ||
| Production control wages | ||
| Materials management wages | ||
| Total variable factory overhead costs | $ | |
| Fixed factory overhead costs: | ||
| Factory insurance | $ | |
| Factory depreciation | ||
| Total fixed factory overhead costs | ||
| Total factory overhead costs | $ | |
In: Accounting
Expand Your Critical Thinking 24-02 a-d Ana Carillo and Associates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the work is custom, many of the cabinets are a standard size. One such non-custom model is called Luxury Base Frame. Normal production is 1,000 units. Each unit has a direct labor hour standard of 5 hours. Overhead is applied to production based on standard direct labor hours. During the most recent month, only 1,060 units were produced; 4,500 direct labor hours were allowed for standard production, but only 4,000 hours were used. Standard and actual overhead costs were as follows. Standard (1,000 units) Actual (1,060 units) Indirect materials $ 14,600 $ 15,000 Indirect labor 52,400 62,200 (Fixed) Manufacturing supervisors salaries 27,400 26,800 (Fixed) Manufacturing office employees salaries 15,800 15,200 (Fixed) Engineering costs 32,900 30,500 Computer costs 12,200 12,200 Electricity 3,000 3,000 (Fixed) Manufacturing building depreciation 9,700 9,700 (Fixed) Machinery depreciation 3,600 3,600 (Fixed) Trucks and forklift depreciation 1,800 1,800 Small tools 900 1,700 (Fixed) Insurance 600 600 (Fixed) Property taxes 400 400 Total $175,300 $182,700
Calculate the 1) total overhead variance, 2) controllable variance, and 3) volume variance. (Round variable overhead to 2 decimal places and final answers to 0 decimal places, e.g. 1,575.)
In: Accounting
56. Mr. Max is about to purchase 4 units of good A and 6 units of good B. The price of both A and B is $2. Mr. Max has only $20 to spend. If the marginal utility of the fourth unit of A is 12 and the marginal utility of the sixth unit of B is 12, then:
a. he should not buy anything.
b. he should buy more of A and less of B.
c. he should buy less of A and more of B.
d. he should buy A and B in the quantities indicated.
e. he should buy more of A and little more than that of B.
57. If an oligopolist cuts the prices of its products,
a. customers will switch to a rival firm.
b. customers will remain unchanged in number.
c. customers will switch from rival firms to buy from them.
d. rival firms will not react.
58. Cy recently went into the business of producing and selling cardboard boxes. For this business, which of the following is most likely to be a fixed cost?
a. fire insurance
b. labor costs
c. paper costs
d. adhesive costs e. b, c, and d are equally likely to be fixed costs
59. At 100 units of output, total cost is $22,000 and total variable cost is $14,000. At 100 units of output, what is the value of average total cost, average variable cost, and average fixed cost, respectively?
a. $22; $14; $8
b. $220; $140; $80
c. $740; $340; $400
d. $340; $740; $60
e. $400; $340: There is not enough information provided to determine the average fixed cost
In: Economics