Prepare summary journal entries to record the following transactions for a company in its first month of operations.

1. Raw materials purchased on account, $116,000.
2. Direct materials used in production, $46,000. Indirect materials used in production, $20,600.
3. Paid cash for factory payroll, $55,000. Of this total, $41,000 is for direct labor and $14,000 is for indirect labor.
4. Paid cash for other actual overhead costs, $9,250.
5. Applied overhead at the rate of 120% of direct labor cost.
6. Transferred cost of jobs completed to finished goods, $85,600.
7. Sold jobs on account for $123,000 g(2). The jobs had a cost of $85,600 g(1).

Historically the United States has always enjoyed being the world's largest producer of goods and services. However, it appears that all of that will change shortly. According to The Independent, in an article dated February 1, 2007, by the 2030s China's GDP will become larger than the United States' GDP based on their current growth rate and by the 2040s India's GDP will also become larger than the United States' GDP as well. This means that the United States will only be the third largest economy in the world (China will be first and India will be second). How do you feel about that? How might that impact the U.S. economy? What kinds of political impacts will it have?

GDP is the total market value of goods and services produced in a country in a year. Google the GDP's of three countries. Everyone should use different countries. Use one advanced economy, one developing country, and then a country on a different continent than the first two countries you found. What I want to know and you need to share is current (1) total gdp, (2) gdp per capita and (3) gdp growth rate for the last year. Explain what has been happening in the countries you chose. If you have heritage from another country, share the gdp numbers from your country.

Prepare summary journal entries to record the following transactions for a company in its first month of operations.

A. Raw materials purchased on account, $100,000.

B. Direct materials used in production, $42,000. Indirect materials used in production, $15,000.

C. Paid cash for factory payroll, $50,000. Of this total, $36,000 is for direct labor and $14,000 is for indirect labor.

D. Paid cash for other actual overhead costs, $8,250.

E. Applied overhead at the rate of 120% of direct labor cost.

F. Transferred cost of jobs completed to finished goods, $68,175.

G. Sold jobs on account for $97,000. The jobs had a cost of $68,175.

Prepare summary journal entries to record the following transactions for a company in its first month of operations.

1. Raw materials purchased on account, $86,000.
2. Direct materials used in production, $38,500. Indirect materials used in production, $23,000.
3. Paid cash for factory payroll, $50,000. Of this total, $38,000 is for direct labor and $12,000 is for indirect labor.
4. Paid cash for other actual overhead costs, $7,375.
5. Applied overhead at the rate of 125% of direct labor cost.
6. Transferred cost of jobs completed to finished goods, $62,600.
7. Sold jobs on account for $90,000 g(2). The jobs had a cost of $62,600 g(1).

During the first week of lockdown, you decided not to spend more than $30 on your food. You ate only hotdog with burger bread, and that also in a 1:1 combination, and nothing else. The prices of both these goods were $1 per unit. Find out the optimum amount of hotdog and burger bread you consumed that week. In the second week, due to lack of supply the price of hotdog increased to $2 while the price of burger bread did not change. How many hotdogs and burgers bread did you consume in the second week? Explain the income and substitution effects of this price change using a diagram

Inflation Issues

• Does the base basket used to create the CPI precisely reflect your individual choices? If the answer is no, do the inflation rates calculated using the CPI represent the changes in purchasing power that you actually experience?
• Do you substitute between goods as one becomes more expensive, i.e., would you buy more of a less expensive good if the price of your first choice rose significantly? If the answer is yes, does the CPI inflation rate represent the decrease in purchasing power that you actually experienced?
• Based on your answers to the above, does the choice of the market basket matter?

our accounts receivable clerk, Mitra Adams, to whom you pay a salary of $2,715 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $148,420 as shown in the ledger.

The following information is available for your first year in business.

Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account.

Absorption and Variable Costing with Over- and Underapplied Overhead

Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows:

During the year, the company had the following activity:

Actual fixed overhead was $12,600 less than budgeted fixed overhead. Budgeted variable overhead was $5,700 less than the actual variable overhead. The company used an expected actual activity level of 10,600 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold.

Required:

1. Compute the unit cost using (a) absorption costing and (b) variable costing.

Feedback

The unit cost under absorption costing includes one more cost than under variable costing.

The unit cost under variable costing includes one less cost than under absorption costing.

2. Prepare an absorption-costing income statement. Round your answers to the nearest cent.

Feedback

Absorption costing assigns all manufacturing costs to each unit produced.

3. Prepare a variable-costing income statement. Round your answers to the nearest cent.

Feedback

Use a contribution margin format income statement that groups costs according to behavior (variable and fixed)

4. Reconcile the difference between the two income statements.
The absorption costing generates an income $more than variable co

Planner Corporation owns 60 percent of Schedule Company’s voting shares. During 20X3, Planner produced 27,000 computer desks at a cost of $96 each and sold 12,000 of them to Schedule for $108 each. Schedule sold 8,000 of the desks to unaffiliated companies for $136 each prior to December 31, 20X3, and sold the remainder in early 20X4 for $146 each. Both companies use perpetual inventory systems.

Required:
a. What amounts of cost of goods sold did Planner and Schedule record in 20X3?
Planner Corporation owns 60 percent of Schedule Company’s voting shares. During 20X3, Planner produced 27,000 computer desks at a cost of $96 each and sold 12,000 of them to Schedule for $108 each. Schedule sold 8,000 of the desks to unaffiliated companies for $136 each prior to December 31, 20X3, and sold the remainder in early 20X4 for $146 each. Both companies use perpetual inventory systems.

Required:
a. What amounts of cost of goods sold did Planner and Schedule record in 20X3?

b. What amount of cost of goods sold must be reported in the consolidated income statement for 20X3? (Do not round intermediate calculations.)

c. Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December 31, 20X3, relating to the intercorporate sale of inventory. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

• Record the consolidation entry for the intercorporate sale of inventory.

d. Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December 31, 20X4, relating to the intercorporate sale of inventory. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

• Record the consolidation entry for the intercorporate sale of inventory.

e. Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December 31, 20X4, relating to the intercorporate sale of inventory if the sales were upstream. Assume that Schedule produced the computer desks at a cost of $96 each and sold 12,000 desks to Planner for $108 each in 20X3, with Planner selling 8,000 desks to unaffiliated companies in 20X3 and the remaining 4,000 in 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

• Record the consolidation entry for the intercorporate sale of inventory.