It is important to record accounting transactions in a timely manner so that you can close out your books properly at the end of a quarter. Identify and discuss the factors that lead to a user failing to record transactions in a timely manner in accounting systems like

The Smith family is determined to purchase a $250,000 home without incurring any debt. The family plans to save $2,500 a quarter for this purpose and expects to earn 6.65 percent, compounded quarterly. How long will it be until the family can purchase a home?

Planning/writing reports and proposals-

A large manufacturing company's directors want you to find out why there is a considerable drop in the production units in the previous financial quarter. What will do to find out the cause of the problem and recommend a solution to the problem.

Forest Components makes aircraft parts. The following transactions occurred in July:

1. Purchased $16,940 of materials on account.

2. Issued $16,820 in direct materials to the production department.

3. Issued $1,230 of supplies from the materials inventory.

4. Paid for the materials purchased in transaction (1) using cash.

5. Returned $2,190 of the materials issued to production in (2) to the materials inventory.

6. Direct labor employees earned $32,200, which was paid in cash.

7. Paid $17,200 for miscellaneous items for the manufacturing plant. Accounts Payable was credited.

8. Recognized depreciation on manufacturing plant of $35,800.

9. Applied manufacturing overhead for the month.

Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,000. Estimated overhead for the year was $394,940.

The following balances appeared in the inventory accounts of Forest Components for July:

Required:

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

b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

Blue Plate Construction organized in December and recorded the following transactions during its first month of operations.
Dec. 2    Purchased materials on account for $400,000.
Dec. 3    Used direct materials costing $100,000 on job no. 100.
Dec. 9    Used direct materials costing $150,000 on job no. 101.
Dec. 15    Used direct materials costing $30,000 on job no. 102.
Dec. 28    Applied the following direct labor costs to jobs: job no. 100, $9,000; job no. 101, $11,000; job no. 102, $5,000.
Dec. 28    Applied manufacturing overhead to all jobs at a rate of 300% of direct labor dollars.
Dec. 29    Completed and transferred job no. 100 and job no. 101 to the finished goods warehouse.
Dec. 30    Sold job no. 100 on account for $200,000.
Dec. 31    Recorded and paid actual December manufacturing overhead costs of $78,000, cash.
Dec. 31    Closed the Manufacturing Overhead account directly to Cost of Goods Sold.

    Record each of these transactions as illustrated in the Job Order Costing section.

    Compute the amount at which Cost of Goods Sold is reported in the company’s income statement for the month ended December 31.

    Determine the inventory balances reported in the company’s balance sheet dated December 31.

    Was manufacturing overhead in December overapplied, or was it underapplied? Explain.

Blue Plate Construction organized in December and recorded the following transactions during its first month of operations.
Dec. 2    Purchased materials on account for $400,000.
Dec. 3    Used direct materials costing $100,000 on job no. 100.
Dec. 9    Used direct materials costing $150,000 on job no. 101.
Dec. 15    Used direct materials costing $30,000 on job no. 102.
Dec. 28    Applied the following direct labor costs to jobs: job no. 100, $9,000; job no. 101, $11,000; job no. 102, $5,000.
Dec. 28    Applied manufacturing overhead to all jobs at a rate of 300% of direct labor dollars.
Dec. 29    Completed and transferred job no. 100 and job no. 101 to the finished goods warehouse.
Dec. 30    Sold job no. 100 on account for $200,000.
Dec. 31    Recorded and paid actual December manufacturing overhead costs of $78,000, cash.
Dec. 31    Closed the Manufacturing Overhead account directly to Cost of Goods Sold.

a. Record each of these transactions as illustrated in the Job Order Costing section.

b. Compute the amount at which Cost of Goods Sold is reported in the company’s income statement for the month ended December 31.

c. Determine the inventory balances reported in the company’s balance sheet dated December 31.

d. Was manufacturing overhead in December overapplied, or was it underapplied? Explain.

Duke Company is a furniture manufacturer. At the end of November two jobs are in work-in-process. The following table provides the information about Jobs 401 and 402.

The predetermined overhead rate for Duke is based on budgeted direct labor hours, 100,000, and the budgeted overhead cost, $750,000. The actual data for November are:

There is no beginning inventory. Duke prorates overhead variance to FG, WIP, COGS based on total costs in these accounts.

(a) Determine the predetermined overhead application rate and the cost of WIP before overhead variance proration.

(b) Determine the overhead variance and prorate the variance to WIP, FG, and COGS.

Chapter 9 P2: Thomson Company manufactures mosquito repellant. There are multiple processing departments. The following information comes from the first processing department:

Determine the cost of goods transferred out and the cost of ending inventory of WIP for November.

Journal Entries, T-Accounts

Kapoor Company uses job-order costing. During January, the following data were reported:

1. Materials purchased on account: direct materials, $99,500; indirect materials, $14,800.
2. Materials issued: direct materials, $81,500; indirect materials, $ 8,800.
3. Labor cost incurred: direct labor, $67,000; indirect labor, $18,750.
4. Other manufacturing costs incurred (all payables), $46,200.
5. Overhead is applied on the basis of 110 percent of direct labor cost.
6. Work finished and transferred to Finished Goods Inventory cost $235,700.
7. (1) Finished goods costing $218,000 were (2) sold on account for 150 percent of cost. Make the entry to record the cost of the jobs first, followed by the entry to record the revenue from their sale.
8. Any over- or underapplied overhead is closed to Cost of Goods Sold.

Required:

1. Prepare journal entries to record these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

2. Prepare a T-account for Overhead Control. Post the entries to the T-account in the same order in which they were journalized. If an amount is zero, enter "0". What is the ending balance in this account?

3. Prepare a T-account for Work-in-Process Inventory. Assume a beginning balance of $10,000, and post the entries to the T-account in the same order in which they were journalized.

Suppose that David adopted the last-in, first-out (LIFO) inventory-flow method for his business inventory of widgets (purchase prices below).

In late December, David sold widget #2 and next year David expects to purchase three more widgets at the following estimated prices: