Entries and Schedules for Unfinished Jobs and Completed Jobs
Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:
| Job No. | Materials | Factory Labor | ||
| 101 | $2,030 | $2,240 | ||
| 102 | 2,480 | 3,020 | ||
| 103 | 1,640 | 1,480 | ||
| 104 | 5,560 | 5,560 | ||
| 105 | 3,530 | 4,230 | ||
| 106 | 2,580 | 2,690 | ||
| For general factory use | 690 | 3,320 | ||
| Job No. | Machine Hours | ||
| 101 | 22 | ||
| 102 | 34 | ||
| 103 | 15 | ||
| 104 | 67 | ||
| 105 | 38 | ||
| 106 | 37 | ||
| Total | 213 | ||
Required:
1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.
| Entries | Description | Debit | Credit |
|---|---|---|---|
| a. | Materials | ||
| Accounts Payable | |||
| b. | Work in Process | ||
| Factory Overhead | |||
| Materials | |||
| Wages Payable | |||
| c. | Factory Overhead | ||
| Accounts Payable | |||
| d. | Factory Overhead | ||
| Accumulated Depreciation-Machinery and Equipment | |||
| e. | Work in Process | ||
| Factory Overhead | |||
| f. | Finished Goods | ||
| Work in Process | |||
| g. Sale | Accounts Receivable | ||
| Sales | |||
| g. Cost | Cost of Goods Sold | ||
| Finished Goods |
2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month.
| Work in Process | |||
|---|---|---|---|
| (b) | (f) | ||
| (e) | |||
| Bal. | |||
| Finished Goods | |||
|---|---|---|---|
| (e) | (g) | ||
| Bal. | |||
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
| Hildreth Company Schedule of Unfinished Jobs |
||||||||
|---|---|---|---|---|---|---|---|---|
| Job | Direct Materials | Direct Labor | Factory Overhead | Total | ||||
| No. 104 | $ | $ | $ | $ | ||||
| No. 106 | ||||||||
| Balance of Work in Process, April 30 | $ | |||||||
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
| Hildreth Company Schedule of Completed Jobs |
||||||||
|---|---|---|---|---|---|---|---|---|
| Job | Direct Materials | Direct Labor | Factory Overhead | Total | ||||
| Finished Goods, April 30 (Job 105) | $ | $ | $ | $ | ||||
In: Accounting
Your friend and colleague has been working for about a year since graduating from university. He has come to you for advice on his saving and spending habits. You have accumulated the following information on his savings and spending that has occurred over the past year:
|
Saving/Spending |
Amount $ |
|
Salary received over the last year, net of income tax |
45,000 |
|
Rent and utilities paid |
16,600 |
|
Car expenses paid |
4,800 |
|
Credit card debt at the start of the year |
1,000 |
|
Food, entertaining, recreation paid |
6,000 |
|
Credit card debt at the end of the year |
2,500 |
|
Line of credit at the start of the year |
2,500 |
|
Line of credit at the end of the year |
1,200 |
|
Purchase of car |
20,000 |
|
Car loan at the end of the year |
15,000 |
|
Cash account balance at the beginning of the year |
500 |
|
Cash received from disposal of motorcycle |
1,000 |
|
Cash received from disposal of computer |
100 |
|
Cash account balance at the end of the year |
1,000 |
|
Purchase of Investments |
5,500 |
|
Student loan at the beginning of the year |
15,000 |
|
Student loan at the end of the year |
10,000 |
|
Purchase of new computer |
1,500 |
|
Interest expense paid |
1,400 |
Instructions
Prepare a statement of cash flow for your friend from information provided above using the direct method.
Can you provide some advice to your friend on how he could improve his cash flow strategies, such as managing debt levels and terms of payment?
Please ensure that your response is written in full sentences and that you provide an explanation and/or a calculation to support your answers.
In: Accounting
1. Monetary policy refers to
a. government taxing
b. Government spending
c. Federal reserve manipulating the money supply
d. Federal reserve printing money
2. Which of the following would shift the long run aggregate supply curve to the left?
a. Decrease in consumption
b. Decrease in resources
3. In the short run, aggregate demand in a country will decrease if there is a decrease in the
a. tax rate in the country
b. money supply
c. factors of production
d. level of technology
4. If the federal government increased spending, then you could expect to see
a. a recession
b. a decrease in interest rate
c. a increase in interest rate
d. a decrease in national debt
5. Research shows that when students receive an extra $100 they purchase items that total $80. Based on this what would be the tax multiplier given the information above?
a. 1.25
b. 1.5
c. 4
d. 1
6. An increase in government spending (without crowding out) would cause all of the following except
a. the AD curve to shift right
b. the price level to fall
c. the price level to rise
d. the level of real GDP to rise
7. Which of the following would lead to a change in investment?
a. current level of income
b. change in the interest rate
c. all of the above
8. The federal reserve practice of using open market operations: buying bonds to _______ the interest rate will work as long as the demand curve for money is __________.
a. decrease, vertical
b. increase vertical
c. decrease, downward shaping
d. increase, upward shaping
In: Economics
In: Economics
Bullseye Company manufactures dartboards. Its standard cost
information follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (cork board) | 3.50 | sq. ft. | $ | 2.50 | per sq. ft. | $ | 8.75 | |
| Direct labor | 1 | hrs. | $ | 11.00 | per hr. | 11.00 | ||
| Variable manufacturing overhead (based on direct labor hours) | 1 | hrs. | $ | 0.55 | per hr. | 0.55 | ||
| Fixed manufacturing overhead ($51,000 ÷ 170,000 units) | 0.30 | |||||||
Bullseye has the following actual results for the month of
September:
| Number of units produced and sold | 150,000 | |
| Number of square feet of corkboard used | 520,000 | |
| Cost of corkboard used | $ | 1,248,000 |
| Number of labor hours worked | 159,000 | |
| Direct labor cost | $ | 1,605,900 |
| Variable overhead cost | $ | 92,000 |
| Fixed overhead cost | $ | 66,000 |
Required:
1. Calculate the direct materials price, quantity, and
total spending variances for Bullseye. (Do not round your
intermediate calculations. Indicate the effect of each variance by
selecting "F" for favorable, "U" for unfavorable.)
2. Calculate the direct labor rate, efficiency,
and total spending variances for Bullseye.(Do not round
your intermediate calculations. Indicate the effect of each
variance by selecting "F" for favorable, "U" for
unfavorable.)
3. Calculate the variable overhead rate, efficiency, and total
spending variances for Bullseye. (Do not round your
intermediate calculations. Indicate the effect of each variance by
selecting "F" for favorable/Overapplied and "U" for
unfavorable/underapplied.)
In: Accounting
Barley Hopp, Inc., manufactures custom-ordered commemorative
beer steins. Its standard cost information follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (clay) | 1.60 | lbs. | $ | 1.70 | per lb. | $ | 2.72 | |
| Direct labor | 1.60 | hrs. | $ | 14.00 | per hr. | 22.40 | ||
| Variable manufacturing overhead (based on direct labor hours) | 1.60 | hrs. | $ | 1.20 | per hr. | 1.92 | ||
| Fixed manufacturing overhead ($312,500.00 ÷ 125,000.00 units) | 2.50 | |||||||
Barley Hopp had the following actual results last year:
| Number of units produced and sold | 130,000 | |
| Number of pounds of clay used | 228,200 | |
| Cost of clay | $ | 365,120 |
| Number of labor hours worked | 175,000 | |
| Direct labor cost | $ | 2,975,000 |
| Variable overhead cost | $ | 250,000 |
| Fixed overhead cost | $ | 330,000 |
Required:
1. Calculate the direct materials price, quantity, and
total spending variances for Barley Hopp. (Do not round
your intermediate calculations. Indicate the effect of each
variance by selecting "F" for favorable and "U" for
unfavorable.)
2. Calculate the direct labor rate, efficiency,
and total spending variances for Barley Hopp.
(Do not round your intermediate calculations. Indicate the
effect of each variance by selecting "F" for favorable and "U" for
unfavorable.)
3. Calculate the variable overhead rate,
efficiency, and total spending variances for Barley
Hopp. (Do not round your intermediate
calculations. Indicate the effect of each variance by selecting "F"
for favorable/Overapplied and "U" for
unfavorable/underapplied.)
In: Accounting
In: Finance
1. The government accounts directly for about 20% of the GDP. Why is government such a major factor in our economy?
2. Is the government debt (over 20 trillion dollars) a problem for future generations? Explain.
3. How do the roles of government affect your daily life? Would your life be better without government?
4. People want tax breaks. To cut taxes, spending must be cut (at least in theory). Why are spending cuts so tough to make?
5. What is the difference between the federal deficit and the national debt?
6. When can deficits actually help the economy?
7. "Entitlement and mandatory" spending is part of the Budget. Why are the terms entitlement and mandatory misleadung?
8. Why do deficits rise during recessions?
9. Why is there always so much debate and anger about the role of government in providing a safety net (welfare)?
10.What is the main advantage of automatic stabilizers over discretionary fiscal policy?
11. Explain how automatic stabilizers work.
12. What would happen if expansionary fiscal policy was implemented in a recession but, due to lag, did not actually take effect until after the economy was back to potential GDP?
13. What would happen if contractionary fiscal policy were implemented during an economic boom but, due to lag, it did not take effect until the economy slipped into recession?
14. Why are sales taxes regressive?
15. Why would the tax incidence mostly fall on smokers if the taxes on cigarettes went up?
In: Economics
Barley Hopp, Inc., manufactures custom-ordered commemorative
beer steins. Its standard cost information follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (clay) | 1.60 | lbs. | $ | 1.70 | per lb. | $ | 2.72 | |
| Direct labor | 1.60 | hrs. | $ | 11.00 | per hr. | 17.60 | ||
| Variable manufacturing overhead (based on direct labor hours) | 1.60 | hrs. | $ | 1.10 | per hr. | 1.76 | ||
| Fixed manufacturing overhead ($275,000.00 ÷ 110,000.00 units) | 2.50 | |||||||
Barley Hopp had the following actual results last year:
| Number of units produced and sold | 115,000 | |
| Number of pounds of clay used | 198,200 | |
| Cost of clay | $ | 317,120 |
| Number of labor hours worked | 160,000 | |
| Direct labor cost | $ | 2,080,000 |
| Variable overhead cost | $ | 220,000 |
| Fixed overhead cost | $ | 280,000 |
Required:
a. Calculate the direct materials price, quantity, and
total spending variances for Barley Hopp. (Do not round
your intermediate calculations. Indicate the effect of each
variance by selecting "F" for favorable and "U" for
unfavorable.)
b. Calculate the direct labor rate, efficiency,
and total spending variances for Barley Hopp.
(Do not round your intermediate calculations. Indicate the
effect of each variance by selecting "F" for favorable and "U" for
unfavorable.)
c. Calculate the variable overhead rate,
efficiency, and total spending variances for Barley
Hopp. (Do not round your intermediate
calculations. Indicate the effect of each variance by selecting "F"
for favorable/Overapplied and "U" for
unfavorable/underapplied.)
In: Accounting
From 104 of its restaurants, Noodles & Company managers collected data on per-person sales and the percent of sales due to "potstickers" (a popular food item). Both numerical variables failed tests for normality, so they tried a chi-square test. Each variable was converted into ordinal categories (low, medium, high) using cutoff points that produced roughly equal group sizes. At α = .10, is per-person spending independent of percent of sales from potstickers? Potsticker % of Sales Per-Person Spending Low Medium High Row Total Low 14 13 8 35 Medium 11 17 5 33 High 10 8 18 36 Col Total 35 38 31 104 You will need to open the Excel file. Then open Minitab. Copy the data (NOT THE TOTALS) into Minitab. Be sure that the 1st number goes into row 1 in Minitab and that you type the column headings (Low, Medium, High) into the grey shaded top header row in Minitab. PictureClick here for the Excel Data File (a) The hypothesis for the given issue is H0: Percentage of Sales and Per-Person Spending are independent. No Yes (b) Calculate the chi-square test statistic, degrees of freedom, and the p-value. (Round your test statistic value to 2 decimal places and p-value to 4 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) Test statistic d.f. p-value (c) We reject the null and find dependence. No Yes
In: Statistics and Probability