Questions
3. Counting Services Inc. has the following portfolio of trading equity securities at 12/31/18. All securities...

3. Counting Services Inc. has the following portfolio of trading equity securities at 12/31/18. All securities were purchased during 2018.

Symbol # shares Total Cost Market Value

AAPL 1000 $105,000 $125

BMX 2000 $47,000 $51

CAT 1000 $100,000 $105

GNC 3000 $64,000 $21

Total   $316,000

  • Prepare the adjustment necessary at 12/31/18.

  • On February 12, 2019, Counting Services sells 1,000 shares of AAPL for $125,000. Prepare the journal entry.

  • The total cost of the three remaining securities is $211,000 and the market value is (see below) at March 31, 2019. Prepare the adjusting entry.

AAPL

BMX

CAT

GNC

$135

$55

$99

$24

In: Accounting

BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data: Total...

BALANCE SHEET ANALYSIS

Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1.2x
Days sales outstanding: 39.5 daysa
Inventory turnover ratio: 4x
Fixed assets turnover: 3x
Current ratio: 2.5x
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 25%
aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent.

Balance Sheet
Cash $   Current liabilities $  
Accounts receivable    Long-term debt 50,000
Inventories    Common stock   
Fixed assets    Retained earnings 60,000
Total assets $200,000 Total liabilities and equity $  
Sales $   Cost of goods sold $  

In: Finance

XYZ has been experiencing losses on its Widget line for several years. Here is the most...

XYZ has been experiencing losses on its Widget line for several years. Here is the most recent contribution margin statement:

Sales        850,000
VC:
Variable Manufacturing        330,000
Sales Commissions          42,000
Shipping          18,000
Total VC        390,000
Contribution Margin        460,000
FC:
Advertising (traceable)        270,000
Depreciation (no resale)          80,000
General Factory OH        105,000
Product Manger Salary          32,000
Insurance on Inventory            8,000
Purchasing Department          45,000
Total FC        540,000
Net Op Loss        (80,000)

The general factory overhead is a common cost allocated on the basis of machine hours

The Purchasing department is a common cost allocated on the basis of sales dollars.

What is the total relevant costs in the decision to drop this line?

In: Accounting

Suppose that a company has estimated the average variable cost of producing its product to be...

Suppose that a company has estimated the average variable cost of producing its product to be $10. The firm’s total fixed cost is $100,000. If the company produces 1,000 units and its pricing strategy is to add a 35 percent markup, what price would the company charge?

In: Economics

Your marketing research department has estimated the demand for your firm's product to be Q=10,000−100P and...

Your marketing research department has estimated the demand for your firm's product to be Q=10,000−100P and the marginal revenue to be R=100−0.02Q. Suppose marginal cost and average total cost are constant at $60. What is the quantity that you should produce? ________ units.

In: Economics

Cavalier Company has several processing departments. Costs charged to the assembly department for November 2020 totalled...

Cavalier Company has several processing departments. Costs charged to the assembly department for November 2020 totalled $1,991,382 as follows:

Work in process, November 1
Materials $68,900
Conversion costs 47,000 $115,900
Materials added 1,414,100
Labour 222,500
Overhead 238,882


Production records show that 35,500 units were in beginning work in process, 30% complete in terms of conversion costs, 706,000 units were started into production, and 25,400 units were in ending work in process, 40% complete in terms of conversion costs. Materials are entered at the beginning of each process.

Determine the equivalent units of production and the unit production costs for the assembly department. (Round unit costs to 2 decimal places, e.g. 15.25.)

Equivalent units Unit cost
Materials $  per unit
Conversion costs $  per unit

  

  

Determine the assignment of costs to goods transferred out and in process.

Costs accounted for
Transferred out $
Work in process, November 30
Materials $
Conversion costs
   Total costs $

  

  

Prepare a production cost report for the assembly department. (Round unit costs to 2 decimal places, e.g. 15.25.)

CAVALIER COMPANY
Assembly Department
Production Cost Report
For the Month Ended November 30, 2020
Equivalent Units
Quantities Physical Units Materials Conversion Costs Total
Units to be accounted for
Work in process, November 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, November 30
Total units
Costs
Unit costs
Costs in November $ $ $
Equivalent units
Unit costs $ $ $
Costs to be accounted for
Work in process, November 1 $
Started into production
Total costs $
Cost Reconciliation Schedule
Costs accounted for
Transferred out $
Work in process, November 30
Materials $
Conversion costs
Total costs

In: Accounting

Lansing, Inc. provides the following information for one of its department’s operations for June (no new...

Lansing, Inc. provides the following information for one of its department’s operations for June (no new material is added in Department T):

WIP inventory—Department T
Beginning inventory (8,200 units, 20% complete with respect to Department T costs)
Transferred-in costs (from Department S) $ 35,830
Department T conversion costs 8,930
Current work (18,900 units started)
Prior department costs 88,830
Department T costs 167,020

The ending inventory has 3,200 units, which are 50 percent complete with respect to Department T costs and 100 percent complete for prior department costs.

Required:

Complete the production cost report using FIFO. (Round "Cost per equivalent unit" to 2 decimal places.)

Physical Units Equivalent Units
Prior Department Department T
Flow of units:
Units to be accounted for:
Beginning WIP inventory
Units started this period
Total units to account for
Units accounted for:
Completed and transferred out
From beginning WIP inventory
Prior department
Department T
Started and completed currently
Units in ending WIP inventory
Prior department
Department T
Total units accounted for
Total Prior Department Department T
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for
Cost per equivalent unit
Prior department
Department T
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP inventory
Current costs added to complete beginning WIP inventory
Prior department
Department T
Current costs of units started and completed:
Prior department
Department T
Total costs transferred out
Cost of ending WIP inventory
Prior department
Department T
Total costs accounted for

In: Accounting

Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 [The...

Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4

[The following information applies to the questions displayed below.]

Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $365,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $27,000; factory rent, $32,000; factory utilities, $20,000; and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow.

Job 306 Job 307 Job 308
Balances on March 31
Direct materials $ 25,000 $ 40,000
Direct labor 25,000 18,000
Applied overhead 12,500 9,000
Costs during April
Direct materials 131,000 205,000 $ 105,000
Direct labor 105,000 152,000 101,000
Applied overhead ? ? ?

Status on April 30

 Finished (sold) Finished (unsold)

In process

Problem 15-1A Part 1

Required:
1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).
  
Job 306 Job 307 Job 308 April Total
From March
Direct Materials $25,000 $40,000 $65,000
Direct Labor 25,000 18,000 43,000
Applied overhead 12,500 9,000 21,500
Beginning goods in process $0
For April
Direct Materials 131,000 205,000 105,000 441,000
Direct Labor 105,000 152,000 101,000 358,000
Applied overhead 0
Total costs added in April 236,000 357,000 206,000 799,000
Total costs (April 30) $0
Status on April 30 Finished (sold) Finished (unsold) In process
April 30 cost included in:

Problem 15-1A Part 2

Materials purchases (on credit).

Direct materials used in production.

Direct labor paid and assigned to Work in Process Inventory.

Indirect labor paid and assigned to Factory Overhead.

Overhead costs applied to Work in Process Inventory.

Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)

Transfer of Jobs 306 and 307 to Finished Goods Inventory.

Cost of goods sold for Job 306.

Revenue from the sale of Job 306.

Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)


2. Prepare journal entries for the month of April to record the above transactions.

1

Record the entry for Materials purchases (on credit).

2

Record the direct materials used in production.

3

Record the Direct labor paid and assigned to Work in Process Inventory.

4

Record the indirect labor paid and assigned to Factory Overhead.

5

Record the entry for Overhead costs applied to Work in Process Inventory.

6

Record the cost of indirect materials used.

7

Record the cost of factory utilities, paid in cash.

8

Record depreciation on factory equipment.

9

Record the cost of factory rent, paid in cash.

10

Record the entry for transfer of Jobs 306 and 307 to Finished Goods Inventory.

11

Record the Cost of goods sold for Job 306.

12

Record the revenue from the sale of Job 306.

13

Record the entry for assignment of any underapplied or overapplied overhead to the Cost of Goods Sold.

Note : = journal entry has been entered

Problem 15-1A Part 3

3. Prepare a schedule of cost of goods manufactured.

MARCELINO COMPANY
Schedule of Cost of Goods Manufactured
For Month Ended April 30
Direct materials used
Direct labor used
Factory overhead applied
Total manufacturing costs 0
Add: Work in process March 31
Total cost of work in process 0
Less: Work in process April 30
Cost of goods manufactured $0

In: Accounting

FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures a product that...

FIFO Method, Two-Department Analysis

Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February:

Molding Assembly
Beginning inventories:
  Physical units 10,000   8,000  
  Costs:
    Transferred in —   $45,300  
    Direct materials $22,000   —  
    Conversion costs $13,800   $16,900  
Current production:
  Units started 25,000   ?  
  Units transferred out 30,000   35,000  
  Costs:
    Transferred in —   ?  
    Direct materials $56,750   $40,250  
    Conversion costs $106,500   $143,000  
  Percentage of completion:
    Beginning inventory 40% 50%
    Ending inventory 80   50  

Required:

1. Using the FIFO method, prepare the following for the Molding Department:

a. A physical flow schedule

Muskoge Company
Molding Department
Physical Flow Schedule
Units to account for:
Units, beginning work in process
Units started in February (transferred in)
Total units to account for
Units accounted for:
Units completed and transferred out:
Started and completed
From beginning work in process
Units, ending work in process
Total units accounted for

Feedback

b. An equivalent units calculation

Total Equivalent Units
Direct Materials
Conversion Costs

c. Calculation of unit costs. Round your answer to the nearest cent.
$ per unit

d. Cost of ending work in process and cost of goods transferred out.

Cost of ending work in process: $
Cost of goods transferred out: $

e. A cost reconciliation.

Costs to account for:
Beginning work in process $
Costs incurred
Total costs to account for $
Costs accounted for:
Transferred out $
Ending work in process
Total costs accounted for $

Feedback

2. Prepare journal entries that show the flow of manufacturing costs for the Molding Department. (a) Materials are added at the beginning of the process, (b) conversion costs are recorded, and (c) units are transferred to the Assembly Department.

(a) Work in Process-Molding
Materials Inventory
(b) Work in Process-Molding
Conversion Costs-Control
(c) Work in Process-Assembly
Work in Process-Molding

Feedback

3. Repeat Requirements 1 and 2 for the Assembly Department.

a. A physical flow schedule

Muskoge Company
Assembly Department
Physical Flow Schedule
Units to account for:
Units, beginning work in process
Units started in February (transferred in)
Total units to account for
Units accounted for:
Units completed and transferred out:
Started and completed
From beginning work in process
Units, ending work in process
Total units accounted for

Feedback

b. An equivalent units calculation

Total Equivalent Units
Direct Materials
Conversion Costs
Transferred In

c. Calculation of unit costs. If required, round your intermediate computations and final answer to four decimal places and use the rounded answer in subsequent computations.
$ per unit

d. Compute the following. For interim computations, carry amounts out to four decimal places. Round your final answers to the nearest dollar.

Cost of ending work in process: $
Cost of goods transferred out: $

e. A cost reconciliation. When necessary, round equivalent cost per unit to four decimal places, and round all other amounts to the nearest dollar.

Costs to account for:
Beginning work in process $
Costs incurred
Total costs to account for $
Costs accounted for:
Transferred out $
Ending work in process
Total costs accounted for $

Note: Cost reconciliation totals differ by $1 due to rounding error.

Feedback

Prepare journal entries that show the flow of manufacturing costs for the Assembly Department. (a) Materials are added at the end of the process, (b) conversion costs are recorded, and (c) the units are transferred to Finished Goods.

(a) Work in Process-Assembly
Materials Inventory
(b) Work in Process-Assembly
Conversion Costs-Control
(c) Finished Goods
Work in Process-Assembly

Correct

In: Accounting

6) In exchange, the Stars traded a whirlpool to the Rangers for a smaller 2002. The...

6) In exchange, the Stars traded a whirlpool to the Rangers for a smaller 2002. The following information is provided to you:

Stars
Cost of a whirlpool and related accumulated depreciation (A/D). $850,000 (cost) and $640,00

Cash received from the Rangers $37,000

The fair value of Star’s whirlpool $270,000

Rangers
Cost of whirlpool and related accumulated depreciation (A/D) $ 930,000 (cost) and $ 630,000

Cash paid to the Stars $37,000
The fair value of Ranger’s whirlpool $ ?

Assume a fair exchange (both parties agreed as to the fair values) and lack of commercial substance.

  1. What was the fair value of the Rangers’ whirlpool at the time of the exchange?

  2. What is the amount of the gain (loss) on exchange recognized by the Rangers? (identify whether this is a gain or a loss).

  3. How much Boot did the Rangers receive in this exchange?

  4. How much is the total (implied) gain on the exchange for the Stars?

  5. What percentage of this total implied Gain (in iv above) will the Stars recognize?

In: Accounting