Pacific Ink had beginning work-in-process inventory of $760,000 on October 1. Of this amount, $305,920 was the cost of direct materials and $454,080 was the cost of conversion. The 49,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs.

During October, 104,000 units were transferred out and 31,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $2,282,000 for direct materials and $3,101,850 for conversion.

Compute the costs of goods transferred out and the ending inventory using the weighted-average method. (Round intermediate calculations to 2 decimal places.)

Interest During Construction

Matrix Inc. borrowed $1,000,000 at 8% to finance the construction of a new building for its own use. Construction began on January 1, 2019, and was completed on October 31, 2019. Expenditures related to this building were:

In addition, Matrix had additional debt (unrelated to the construction) of $500,000 at 9% and $800,000 at 10%. All debt was outstanding for the entire year.

Required:

1. Compute the amount of interest capitalized related to the construction of the building.

   $

2. If the expenditures are assumed to have been incurred evenly throughout the year:
   Compute weighted-average accumulated expenditures

   $

   
   Compute the amount of interest capitalized on the building

   $

Pacific Ink had beginning work-in-process inventory of $1,069,960 on October 1. Of this amount, $459,200 was the cost of direct materials and $610,760 was the cost of conversion. The 63,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs.

During October, 132,000 units were transferred out and 45,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,578,400 for direct materials and $4,182,090 for conversion.

Compute the costs of goods transferred out and the ending inventory using the weighted-average method

Delilah Corporation reports the following transactions for 2013:

Jan. 11 Sold 6,000 shares of $3.50, noncumulative, preferred shares for $75 per share.

Feb. 20 Sold 30,000 common shares for $11 per share.

Oct. 13 Declared a 10% stock dividend on the common shares. The current market price of the common shares is $14 per share. Sampson Corporation has 100,000 common shares outstanding on October 13.

Nov. 16 Distributed the stock dividend declared on October 13.

Dec. 16 Declared the annual dividend required on the preferred shares and a $0.50 per share dividend on the common shares. Sampson Corporation currently has 20,000 preferred shares outstanding.

Prepare journal entries for the above transactions

On March 1, 20X8, Current Properties paid $1,000,000 for 25 percent of the shares of Sealy Enterprises. Current exerts significant influence over Sealy.

a. Sealy reported earnings of $400,000 during 20X8. Record this journal entry for Current.

b. Sealy paid dividends of $50,000 during October 20X8. Record this journal entry for Current.

c. What amount would Current report on its balance sheet as investment in Sealy?

d. Sealy reported earnings of $440,000 during 20X9. Record this journal entry for Current.

e. Sealy paid dividends of $60,000 during October 20X9. Record this journal entry for Current.

f. On December 30, Current sells its entire investment in Sealy for $1,200,000. Record the journal entry.

HTB Corp. sells its virtual reality headset for $750. In addition to the headset, a customer receives an activation code to gain free access to a specific game that currently sells for $62.50. The activation code expires six months from the date of the purchase of the headset, and the company expects that 80% of customers will use the activation code. HTB sells 100 headsets during the month of October of 2019.Requirements:

1.How many performance obligations are included in the sale of the headset?

2.Allocate the transaction price to the different performance obligations.

3.Prepare the summary entry in October of 2019 to record the sale of the 100 headsets.

4.Assume that 60% of the activation codes are redeemed by 12/31/19.

Prepare the necessary adjusting entry.

With referring to the basic accounting equation: Assets = Liabilities + Owner’s Equity, determine the effect of the following transactions to the equation.  

On October 10, 2019, the exchange rate for the US Dollar vs. the Swedish Krona was $1 = SEK 9.95. Over the following year, the US Dollar weakened vs. the Swedish Krona and the exchange rate was $1 = SEK 8.78 on October 10, 2020. Imagine you are an executive at a Swedish company that manufactures all of its products in Sweden. You are thinking of expanding to the United States. These two questions affect of the weakening of the US Dollar vs. the Swedish Krona on the company's expansion.

a) Would your company be more likely or less likely to build your own distribution center in the United States?

b) How would the exchange rate affect the prices of your products sold in the United States? (Remember they are manufactured in Sweden.)