Elasticity Analysis
Examine this list of consumer goods.
Rank these items from most elastic to least elastic in terms of price elasticity of demand and explain your ranking. Things to think about:
How would a 10% price increase for the good affect the consumer's total budget?
For each good, if the seller wanted to increase total revenue, would you advise him/her to increase price or decrease price, based upon your elasticity assessment above.
In: Economics
Choose one of the questions below to discuss. (200 word min)
1. What is meant by the term "open economy"? "Closed economy?"
2. What imported goods do you often buy? How would you be affected if the U.S. restricted international trade or stopped trading with other nations entirely?
3. What happens to the trade from either developed or underdeveloped nations when monopoly export and import agencies are set up? Why?
4. What are the differences between common markets, custom unions and free trade agreements? Which of these is the most comprehensive form of trade agreement.
5. What was the basic role of GATT? What is the basic objective of the WTO?
6. What are the major threats to further world trade liberalization?
7. What are the differences between the static vie of comparative advantage and the dynamic view of growth?
In: Economics
Reflective Question # 2:
The Lebanese government is trying to increase its wealth; it will
be using trade barriers to protect
its industries from global competition. The main exported
commodities are jewelry,
miscellaneous consumer goods, fruit and vegetables, tobacco,
construction minerals, and paper.
Lebanon mainly imports oil, electrical equipment, precious stones,
metals, chemical products,
base metals, vehicles, food and beverages, vegetable products and
animal products. Most of
Lebanon imports are mainly from China, Italy and Egypt. The only
country that Lebanon does
not trade with is “Israel” because they are an occupied country and
abuse human rights.
1- What are the barriers that Lebanon would consider to put upon
the importing of vegetables
products? What about the barriers imposed on “Israel?
2- In order to make the Lebanese product more competitive compared
with overseas firms, what
are the measurements that the government must take?
In: Operations Management
Compare liberalist and socialist political economic views regarding what kinds of goods should be provided by the state as public goods, and in your view, which goods should be provided as public goods in the 21st Century, and why?
In: Economics
The goal of a rational consumer is to maximize (Plus explanation)
the MU/P of all goods consumed.
the quantities of all goods consumed.
total utility from all goods consumed.
marginal utility of all goods consumed.
In: Accounting
Peeke Company uses the periodic method of accounting. Peeke Company has the following inventory information summarizing activity during November:
|
Beginning Inventory |
100 units @ $30.00 per unit |
|
Purchase #1 |
60 units @ $35.00 per unit |
|
Purchase #2 |
40 units @ $40.00 per unit |
|
Ending Inventory (physical count) |
30 units |
Peeke's recorded 17,000 in Sales Revenue.
1. What cost is assigned to Peeke's ending inventory using Average Cost? Round interim computations to the nearest penny and your final answer to the nearest dollar.
| A. |
$1200 |
|
| B. |
$1005 |
|
| C. |
$900 |
|
| D. |
$6700 |
2. What is the cost assignment to Peeke’s COGS (cost of goods sold) using FIFO (First In First Out)?
| A. |
$5695 |
|
| B. |
$5500 |
|
| C. |
$5800 |
|
| D. |
$5650 |
3. What is Peeke’s cost of ending inventory using LIFO (Last In First Out)?
| A. |
$1200 |
|
| B. |
$5800 |
|
| C. |
$1050 |
|
| D. |
$900 |
4. What will Peeke report as gross margin for November assuming they use LIFO (Last In First Out)?
| A. |
$11200 |
|
| B. |
$5800 |
|
| C. |
$11500 |
|
| D. |
$5500 |
|
| E. |
$17000 |
5. What is the COGAS (cost of good available for sale) for November?
HINT: Remember, COGAS is sum of COGS and cost of ending inventory. This is the same regardless of if you are using FIFO, LIFO or Weighted Average, so you pick whichever one you'd like. It is the allocation of COGAS between COGS and EI that varies depending on the method employed.
| A. |
$9000 |
|
| B. |
$3800 |
|
| C. |
$6700 |
|
| D. |
$17000 |
In: Accounting
|
Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows. |
| a. | Purchased raw materials on credit, $240,000. |
| b. | Paid $127,800 cash for factory wages. |
| c. | Paid $15,500 cash to a computer consultant to reprogram factory equipment. |
| d. | Materials requisitions record use of the following materials for the month. |
| Job 136 | $ | 48,000 | |
| Job 137 | 33,500 | ||
| Job 138 | 19,800 | ||
| Job 139 | 22,800 | ||
| Job 140 | 7,200 | ||
| Total direct materials | 131,300 | ||
| Indirect materials | 20,000 | ||
| Total materials used | $ | 151,300 | |
| e. | Time tickets record use of the following labor for the month. |
| Job 136 | $ | 12,200 | |
| Job 137 | 10,500 | ||
| Job 138 | 37,900 | ||
| Job 139 | 39,600 | ||
| Job 140 | 3,600 | ||
| Total direct labor | 103,800 | ||
| Indirect labor | 24,000 | ||
| Total | $ | 127,800 | |
| f. | Applied overhead to Jobs 136, 138, and 139. |
| g. | Transferred Jobs 136, 138, and 139 to Finished Goods. |
| h. | Sold Jobs 136 and 138 on credit at a total price of $540,000. |
| i. |
The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). |
| Depreciation of factory building | $ | 69,500 | |
| Depreciation of factory equipment | 37,000 | ||
| Expired factory insurance | 11,000 | ||
| Accrued property tax payable | 35,500 | ||
| j. |
Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. |
25.
Required information
| Required: | |
| 1. |
Prepare a job cost sheet for each job worked on during the month. (Omit the "$" sign in your response.) |
| Job No. 136 | Job No. 137 | Job No. 138 | Job No. 139 | Job No. 140 | |
| Materials | $ | $ | $ | $ | $ |
| Labor | |||||
| Overhead | |||||
| Total cost | $ | $ | $ | $ | $ |
26.
Required information
| 2. |
Prepare journal entries to record the events and transactions a through j. (Omit the "$" sign in your response. ) |
| General Journal | Debit | Credit | |
| a. | (Click to select)CashFactory payrollAccounts payableRaw materials inventoryFactory overheadAccounts receivableCost of goods soldFinished goods inventory | ||
| (Click to select)Cost of goods soldFactory payrollRaw materials inventoryFactory overheadCashAccounts receivableAccounts payableFinished goods inventory | |||
| b. | (Click to select)Factory payrollAccounts payableFinished goods inventoryAccounts receivableSalesGoods in process inventoryCashFactory overhead | ||
| (Click to select)Factory payrollAccounts receivableSalesAccounts payableGoods in process inventoryCashFinished goods inventoryFactory overhead | |||
| c. | (Click to select)Prepaid insuranceRaw materials inventoryAccounts receivableFactory payrollGoods in process inventoryFactory overheadProperty taxes payableCash | ||
| (Click to select)Goods in process inventoryPrepaid insuranceFactory overheadCashAccounts receivableRaw materials inventoryProperty taxes payableFactory payroll | |||
| d. | (Click to select)Property taxes payableCost of goods soldCashFactory payrollAccounts payableRaw materials inventoryGoods in process inventoryFactory overhead | ||
| (Click to select)Factory overheadRaw materials inventoryFactory payrollProperty taxes payableGoods in process inventoryCost of goods soldCashAccounts payable | |||
| (Click to select)Property taxes payableAccounts payableFactory payrollCashCost of goods soldRaw materials inventoryGoods in process inventoryFactory overhead | |||
| e. | (Click to select)Factory overheadProperty taxes payableFactory payrollPrepaid insuranceRaw materials inventoryFinished goods inventoryGoods in process inventoryCost of goods sold | ||
| (Click to select)Finished goods inventoryPrepaid insuranceFactory overheadProperty taxes payableFactory payrollRaw materials inventoryCost of goods soldGoods in process inventory | |||
| (Click to select)Finished goods inventoryCost of goods soldFactory overheadGoods in process inventoryFactory payrollPrepaid insuranceRaw materials inventoryProperty taxes payable | |||
| f. | (Click to select)Cost of goods soldGoods in process inventorySalesRaw materials inventoryFinished goods inventoryPrepaid insuranceFactory payrollFactory overhead | ||
| (Click to select)Finished goods inventoryFactory overheadPrepaid insuranceRaw materials inventoryGoods in process inventoryCost of goods soldSalesFactory payroll | |||
| g. | (Click to select)Factory payrollAccounts receivableFactory overheadGoods in process inventoryFinished goods inventoryProperty taxes payablePrepaid insuranceCost of goods sold | ||
| (Click to select)Goods in process inventoryAccounts receivableFinished goods inventoryCost of goods soldPrepaid insuranceFactory PayrollProperty taxes payableFactory overhead | |||
| h. | (Click to select)Factory overheadPrepaid insuranceAccounts receivableSalesCost of goods soldFinished goods inventoryFactory payrollGoods in process inventory | ||
| (Click to select)Factory payrollPrepaid insuranceGoods in process inventoryAccounts receivableCost of goods soldFactory overheadFinished goods inventorySales | |||
| (Click to select)Raw materials inventoryCashFinished goods inventoryAccounts receivableFactory overheadSalesFactory payrollCost of goods sold | |||
| (Click to select)Factory payrollRaw materials inventorySalesFactory overheadAccounts receivableFinished goods inventoryCost of goods soldCash | |||
| i. | (Click to select)Property taxes payableAccum. Depreciation-factory equipmentPrepaid insuranceFactory overheadGoods in process inventoryAccum. depreciation-factory buildingSalesCost of goods sold | ||
| (Click to select)SalesGoods in process inventoryAccum. depreciation-factory buildingAccum. depreciation-factory equipmentProperty taxes payableCost of goods soldPrepaid insuranceFactory overhead | |||
| (Click to select)Prepaid insuranceGoods in process inventoryFactory overheadCost of goods soldAccum. depreciation-factory buildingSalesProperty taxes payableAccum. depreciation-factory equipment | |||
| (Click to select)Prepaid insuranceProperty taxes payableAccum. depreciation-factory buildingGoods in process inventoryCost of goods soldSalesFactory overheadAccum. depreciation-factory equipment | |||
| (Click to select)Accum. depreciation-factory equipmentCost of goods soldSalesAccum. depreciation-factory buildingGoods in process inventoryProperty taxes payablePrepaid insuranceFactory overhead | |||
| j. | (Click to select)CashRaw materials inventoryGoods in process inventorySalesFactory payrollFactory overheadAccounts receivableFinished goods inventory | ||
| (Click to select)Accounts receivableRaw materials inventoryGoods in process inventorySalesFinished goods inventoryFactory payrollCashFactory overhead | |||
27.
Required information
| 4. |
Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in your response.) |
| Reports of Job Costs | |
| Goods in Process Inventory | |
| (Click to select)Job 137Job 139Job 138Job 136 | $ |
| (Click to select)Job 140Job 139Job 138Job 137Job 136 | |
| Balance | $ |
| Finished Goods Inventory | |
| (Click to select)Job 137Job 138Job 140Job 136Job 139 | $ |
| Balance | $ |
| Cost of Goods Sold | |
| (Click to select)Job 137Job 139Job 136Job 140 | $ |
| (Click to select)Job 137Job 139Job 138Job 136Job 140 | |
| Balance | $ |
In: Accounting
|
Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows. |
| a. | Purchased raw materials on credit, $240,000. |
| b. | Paid $128,700 cash for factory wages. |
| c. | Paid $15,500 cash to a computer consultant to reprogram factory equipment. |
| d. | Materials requisitions record use of the following materials for the month. |
| Job 136 | $ | 49,000 | |
| Job 137 | 33,000 | ||
| Job 138 | 20,200 | ||
| Job 139 | 23,200 | ||
| Job 140 | 7,400 | ||
| Total direct materials | 132,800 | ||
| Indirect materials | 20,000 | ||
| Total materials used | $ | 152,800 | |
| e. | Time tickets record use of the following labor for the month. |
| Job 136 | $ | 12,300 | |
| Job 137 | 10,700 | ||
| Job 138 | 37,900 | ||
| Job 139 | 39,400 | ||
| Job 140 | 3,400 | ||
| Total direct labor | 103,700 | ||
| Indirect labor | 25,000 | ||
| Total | $ | 128,700 | |
| f. | Applied overhead to Jobs 136, 138, and 139. |
| g. | Transferred Jobs 136, 138, and 139 to Finished Goods. |
| h. | Sold Jobs 136 and 138 on credit at a total price of $545,000. |
| i. |
The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). |
| Depreciation of factory building | $ | 70,000 | |
| Depreciation of factory equipment | 36,500 | ||
| Expired factory insurance | 11,000 | ||
| Accrued property tax payable | 36,500 | ||
| j. |
Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. |
8.
Required information
| Required: | |
| 1. |
Prepare a job cost sheet for each job worked on during the month. (Omit the "$" sign in your response.) |
| Job No. 136 | Job No. 137 | Job No. 138 | Job No. 139 | Job No. 140 | |
| Materials | $ | $ | $ | $ | $ |
| Labor | |||||
| Overhead | |||||
| Total cost | $ | $ | $ | $ | $ |
9.
Required information
| 2. |
Prepare journal entries to record the events and transactions a through j. (Omit the "$" sign in your response. ) |
| General Journal | Debit | Credit | |
| a. | (Click to select)Raw materials inventoryCashFactory payrollAccounts payableFactory overheadFinished goods inventoryCost of goods soldAccounts receivable | ||
| (Click to select)Raw materials inventoryFactory overheadAccounts payableCost of goods soldFinished goods inventoryCashFactory payrollAccounts receivable | |||
| b. | (Click to select)CashFinished goods inventoryFactory payrollGoods in process inventorySalesAccounts receivableAccounts payableFactory overhead | ||
| (Click to select)Accounts payableFinished goods inventoryCashFactory payrollSalesAccounts receivableFactory overheadGoods in process inventory | |||
| c. | (Click to select)CashAccounts receivablePrepaid insuranceRaw materials inventoryFactory payrollFactory overheadGoods in process inventoryProperty taxes payable | ||
| (Click to select)Property taxes payableAccounts receivableGoods in process inventoryFactory payrollRaw materials inventoryPrepaid insuranceFactory overheadCash | |||
| d. | (Click to select)Factory overheadCashFactory payrollCost of goods soldAccounts payableProperty taxes payableRaw materials inventoryGoods in process inventory | ||
| (Click to select)Cost of goods soldProperty taxes payableFactory payrollRaw materials inventoryCashGoods in process inventoryFactory overheadAccounts payable | |||
| (Click to select)Goods in process inventoryCashProperty taxes payableFactory payrollAccounts payableFactory overheadRaw materials inventoryCost of goods sold | |||
| e. | (Click to select)Factory payrollFactory overheadPrepaid insuranceGoods in process inventoryFinished goods inventoryCost of goods soldProperty taxes payableRaw materials inventory | ||
| (Click to select)Finished goods inventoryPrepaid insuranceFactory payrollCost of goods soldGoods in process inventoryProperty taxes payableFactory overheadRaw materials inventory | |||
| (Click to select)Factory overheadPrepaid insuranceProperty taxes payableCost of goods soldGoods in process inventoryFinished goods inventoryFactory payrollRaw materials inventory | |||
| f. | (Click to select)Prepaid insuranceFinished goods inventoryCost of goods soldGoods in process inventoryFactory payrollFactory overheadSalesRaw materials inventory | ||
| (Click to select)Factory overheadSalesFactory payrollCost of goods soldRaw materials inventoryPrepaid insuranceFinished goods inventoryGoods in process inventory | |||
| g. | (Click to select)Property taxes payableFinished goods inventoryPrepaid insuranceCost of goods soldFactory overheadFactory payrollAccounts receivableGoods in process inventory | ||
| (Click to select)Factory PayrollProperty taxes payableGoods in process inventoryPrepaid insuranceAccounts receivableFinished goods inventoryCost of goods soldFactory overhead | |||
| h. | (Click to select)Finished goods inventoryGoods in process inventoryPrepaid insuranceFactory payrollSalesFactory overheadAccounts receivableCost of goods sold | ||
| (Click to select)Factory payrollCost of goods soldPrepaid insuranceAccounts receivableGoods in process inventorySalesFinished goods inventoryFactory overhead | |||
| (Click to select)Finished goods inventoryFactory payrollSalesCashRaw materials inventoryAccounts receivableCost of goods soldFactory overhead | |||
| (Click to select)Finished goods inventoryAccounts receivableCashFactory overheadCost of goods soldRaw materials inventoryFactory payrollSales | |||
| i. | (Click to select)Cost of goods soldAccum. Depreciation-factory equipmentAccum. depreciation-factory buildingPrepaid insuranceFactory overheadProperty taxes payableGoods in process inventorySales | ||
| (Click to select)SalesGoods in process inventoryPrepaid insuranceAccum. depreciation-factory equipmentFactory overheadCost of goods soldAccum. depreciation-factory buildingProperty taxes payable | |||
| (Click to select)Accum. depreciation-factory equipmentCost of goods soldSalesPrepaid insuranceProperty taxes payableGoods in process inventoryFactory overheadAccum. depreciation-factory building | |||
| (Click to select)Property taxes payableAccum. depreciation-factory buildingAccum. depreciation-factory equipmentCost of goods soldSalesGoods in process inventoryPrepaid insuranceFactory overhead | |||
| (Click to select)Goods in process inventoryAccum. depreciation-factory equipmentFactory overheadSalesProperty taxes payableAccum. depreciation-factory buildingPrepaid insuranceCost of goods sold | |||
| j. | (Click to select)Raw materials inventoryFactory overheadSalesCashFactory payrollGoods in process inventoryAccounts receivableFinished goods inventory | ||
| (Click to select)Factory payrollCashGoods in process inventoryFactory overheadFinished goods inventoryAccounts receivableSalesRaw materials inventory | |||
10.
Required information
| 4. |
Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in your response.) |
| Reports of Job Costs | |
| Goods in Process Inventory | |
| (Click to select)Job 138Job 139Job 137Job 136 | $ |
| (Click to select)Job 138Job 136Job 139Job 137Job 140 | |
| Balance | $ |
| Finished Goods Inventory | |
| (Click to select)Job 140Job 137Job 136Job 139Job 138 | $ |
| Balance | $ |
| Cost of Goods Sold | |
| (Click to select)Job 136Job 137Job 140Job 139 | $ |
| (Click to select)Job 136Job 138Job 140Job 137Job 139 | |
| Balance | $ |
In: Accounting
|
Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows. |
| a. | Purchased raw materials on credit, $240,000. |
| b. | Paid $127,800 cash for factory wages. |
| c. | Paid $15,500 cash to a computer consultant to reprogram factory equipment. |
| d. | Materials requisitions record use of the following materials for the month. |
| Job 136 | $ | 48,000 | |
| Job 137 | 33,500 | ||
| Job 138 | 19,800 | ||
| Job 139 | 22,800 | ||
| Job 140 | 7,200 | ||
| Total direct materials | 131,300 | ||
| Indirect materials | 20,000 | ||
| Total materials used | $ | 151,300 | |
| e. | Time tickets record use of the following labor for the month. |
| Job 136 | $ | 12,200 | |
| Job 137 | 10,500 | ||
| Job 138 | 37,900 | ||
| Job 139 | 39,600 | ||
| Job 140 | 3,600 | ||
| Total direct labor | 103,800 | ||
| Indirect labor | 24,000 | ||
| Total | $ | 127,800 | |
| f. | Applied overhead to Jobs 136, 138, and 139. |
| g. | Transferred Jobs 136, 138, and 139 to Finished Goods. |
| h. | Sold Jobs 136 and 138 on credit at a total price of $540,000. |
| i. |
The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). |
| Depreciation of factory building | $ | 69,500 | |
| Depreciation of factory equipment | 37,000 | ||
| Expired factory insurance | 11,000 | ||
| Accrued property tax payable | 35,500 | ||
| j. |
Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. |
25.
Required information
| Required: | |
| 1. |
Prepare a job cost sheet for each job worked on during the month. (Omit the "$" sign in your response.) |
| Job No. 136 | Job No. 137 | Job No. 138 | Job No. 139 | Job No. 140 | |
| Materials | $ | $ | $ | $ | $ |
| Labor | |||||
| Overhead | |||||
| Total cost | $ | $ | $ | $ | $ |
26.
Required information
| 2. |
Prepare journal entries to record the events and transactions a through j. (Omit the "$" sign in your response. ) |
| General Journal | Debit | Credit | |
| a. | (Click to select)Cost of goods soldFactory overheadCashFactory payrollRaw materials inventoryAccounts payableFinished goods inventoryAccounts receivable | ||
| (Click to select)CashFinished goods inventoryAccounts receivableCost of goods soldRaw materials inventoryFactory overheadFactory payrollAccounts payable | |||
| b. | (Click to select)CashAccounts payableFactory payrollAccounts receivableGoods in process inventorySalesFinished goods inventoryFactory overhead | ||
| (Click to select)Accounts receivableCashGoods in process inventoryFactory overheadFactory payrollAccounts payableSalesFinished goods inventory | |||
| c. | (Click to select)Goods in process inventoryRaw materials inventoryFactory payrollProperty taxes payableFactory overheadAccounts receivablePrepaid insuranceCash | ||
| (Click to select)Property taxes payableGoods in process inventoryRaw materials inventoryAccounts receivableFactory overheadPrepaid insuranceCashFactory payroll | |||
| d. | (Click to select)CashRaw materials inventoryCost of goods soldGoods in process inventoryFactory payrollAccounts payableProperty taxes payableFactory overhead | ||
| (Click to select)CashProperty taxes payableFactory payrollRaw materials inventoryAccounts payableGoods in process inventoryCost of goods soldFactory overhead | |||
| (Click to select)CashFactory overheadGoods in process inventoryCost of goods soldAccounts payableProperty taxes payableRaw materials inventoryFactory payroll | |||
| e. | (Click to select)Factory overheadRaw materials inventoryFactory payrollFinished goods inventoryCost of goods soldPrepaid insuranceProperty taxes payableGoods in process inventory | ||
| (Click to select)Prepaid insuranceFinished goods inventoryFactory overheadProperty taxes payableCost of goods soldFactory payrollRaw materials inventoryGoods in process inventory | |||
| (Click to select)Raw materials inventoryCost of goods soldFinished goods inventoryPrepaid insuranceGoods in process inventoryFactory overheadProperty taxes payableFactory payroll | |||
| f. | (Click to select)Cost of goods soldRaw materials inventoryFactory payrollSalesFactory overheadFinished goods inventoryPrepaid insuranceGoods in process inventory | ||
| (Click to select)Cost of goods soldRaw materials inventoryFactory payrollPrepaid insuranceFinished goods inventoryGoods in process inventoryFactory overheadSales | |||
| g. | (Click to select)Finished goods inventoryFactory overheadAccounts receivablePrepaid insuranceGoods in process inventoryProperty taxes payableCost of goods soldFactory payroll | ||
| (Click to select)Goods in process inventoryFactory overheadCost of goods soldProperty taxes payableAccounts receivablePrepaid insuranceFactory PayrollFinished goods inventory | |||
| h. | (Click to select)SalesFactory overheadFactory payrollPrepaid insuranceGoods in process inventoryFinished goods inventoryAccounts receivableCost of goods sold | ||
| (Click to select)Cost of goods soldPrepaid insuranceFactory payrollAccounts receivableFinished goods inventoryFactory overheadGoods in process inventorySales | |||
| (Click to select)Factory payrollFactory overheadCashRaw materials inventoryCost of goods soldAccounts receivableFinished goods inventorySales | |||
| (Click to select)SalesRaw materials inventoryCost of goods soldCashFactory payrollFinished goods inventoryFactory overheadAccounts receivable | |||
| i. | (Click to select)Prepaid insuranceGoods in process inventoryAccum. depreciation-factory buildingAccum. Depreciation-factory equipmentSalesFactory overheadCost of goods soldProperty taxes payable | ||
| (Click to select)SalesAccum. depreciation-factory equipmentCost of goods soldAccum. depreciation-factory buildingPrepaid insuranceProperty taxes payableGoods in process inventoryFactory overhead | |||
| (Click to select)Cost of goods soldPrepaid insuranceGoods in process inventoryAccum. depreciation-factory buildingSalesProperty taxes payableFactory overheadAccum. depreciation-factory equipment | |||
| (Click to select)SalesFactory overheadGoods in process inventoryAccum. depreciation-factory equipmentCost of goods soldPrepaid insuranceProperty taxes payableAccum. depreciation-factory building | |||
| (Click to select)Accum. depreciation-factory equipmentFactory overheadAccum. depreciation-factory buildingGoods in process inventoryProperty taxes payableSalesPrepaid insuranceCost of goods sold | |||
| j. | (Click to select)Accounts receivableFactory payrollFactory overheadCashFinished goods inventoryRaw materials inventorySalesGoods in process inventory | ||
| (Click to select)Factory overheadFactory payrollFinished goods inventoryCashGoods in process inventorySalesAccounts receivableRaw materials inventory | |||
27.
Required information
| 4. |
Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in your response.) |
| Reports of Job Costs | |
| Goods in Process Inventory | |
| (Click to select)Job 136Job 138Job 137Job 139 | $ |
| (Click to select)Job 139Job 136Job 140Job 138Job 137 | |
| Balance | $ |
| Finished Goods Inventory | |
| (Click to select)Job 137Job 139Job 136Job 140Job 138 | $ |
| Balance | $ |
| Cost of Goods Sold | |
| (Click to select)Job 137Job 139Job 140Job 136 | $ |
| (Click to select)Job 140Job 138Job 139Job 136Job 137 | |
| Balance | $ |
In: Accounting
[The following information applies to the questions
displayed below.]
|
Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows. |
| a. | Purchased raw materials on credit, $240,000. |
| b. | Paid $127,800 cash for factory wages. |
| c. | Paid $15,500 cash to a computer consultant to reprogram factory equipment. |
| d. | Materials requisitions record use of the following materials for the month. |
| Job 136 | $ | 48,000 | |
| Job 137 | 33,500 | ||
| Job 138 | 19,800 | ||
| Job 139 | 22,800 | ||
| Job 140 | 7,200 | ||
| Total direct materials | 131,300 | ||
| Indirect materials | 20,000 | ||
| Total materials used | $ | 151,300 | |
| e. | Time tickets record use of the following labor for the month. |
| Job 136 | $ | 12,200 | |
| Job 137 | 10,500 | ||
| Job 138 | 37,900 | ||
| Job 139 | 39,600 | ||
| Job 140 | 3,600 | ||
| Total direct labor | 103,800 | ||
| Indirect labor | 24,000 | ||
| Total | $ | 127,800 | |
| f. | Applied overhead to Jobs 136, 138, and 139. |
| g. | Transferred Jobs 136, 138, and 139 to Finished Goods. |
| h. | Sold Jobs 136 and 138 on credit at a total price of $540,000. |
| i. |
The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). |
| Depreciation of factory building | $ | 69,500 | |
| Depreciation of factory equipment | 37,000 | ||
| Expired factory insurance | 11,000 | ||
| Accrued property tax payable | 35,500 | ||
| j. |
Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. |
25.
Required information
| Required: | |
| 1. |
Prepare a job cost sheet for each job worked on during the month. (Omit the "$" sign in your response.) |
| Job No. 136 | Job No. 137 | Job No. 138 | Job No. 139 | Job No. 140 | |
| Materials | $ | $ | $ | $ | $ |
| Labor | |||||
| Overhead | |||||
| Total cost | $ | $ | $ | $ | $ |
26.
Required information
| 2. |
Prepare journal entries to record the events and transactions a through j. (Omit the "$" sign in your response. ) |
| General Journal | Debit | Credit | |
| a. | (Click to select)Factory overheadRaw materials inventoryFactory payrollCost of goods soldFinished goods inventoryCashAccounts payableAccounts receivable | ||
| (Click to select)Cost of goods soldRaw materials inventoryFinished goods inventoryFactory overheadCashFactory payrollAccounts payableAccounts receivable | |||
| b. | (Click to select)SalesFinished goods inventoryAccounts payableAccounts receivableGoods in process inventoryFactory payrollCashFactory overhead | ||
| (Click to select)SalesCashGoods in process inventoryFactory payrollFinished goods inventoryFactory overheadAccounts payableAccounts receivable | |||
| c. | (Click to select)CashProperty taxes payableAccounts receivableFactory overheadGoods in process inventoryPrepaid insuranceFactory payrollRaw materials inventory | ||
| (Click to select)Accounts receivableRaw materials inventoryGoods in process inventoryProperty taxes payablePrepaid insuranceFactory payrollFactory overheadCash | |||
| d. | (Click to select)Cost of goods soldRaw materials inventoryAccounts payableFactory overheadFactory payrollGoods in process inventoryProperty taxes payableCash | ||
| (Click to select)Factory payrollProperty taxes payableCost of goods soldCashGoods in process inventoryRaw materials inventoryAccounts payableFactory overhead | |||
| (Click to select)Factory payrollRaw materials inventoryGoods in process inventoryFactory overheadCost of goods soldCashProperty taxes payableAccounts payable | |||
| e. | (Click to select)Raw materials inventoryFinished goods inventoryProperty taxes payableFactory payrollGoods in process inventoryCost of goods soldFactory overheadPrepaid insurance | ||
| (Click to select)Factory payrollPrepaid insuranceRaw materials inventoryGoods in process inventoryCost of goods soldFinished goods inventoryFactory overheadProperty taxes payable | |||
| (Click to select)Goods in process inventoryFactory payrollFactory overheadRaw materials inventoryPrepaid insuranceProperty taxes payableCost of goods soldFinished goods inventory | |||
| f. | (Click to select)Finished goods inventoryFactory overheadPrepaid insuranceRaw materials inventoryFactory payrollSalesGoods in process inventoryCost of goods sold | ||
| (Click to select)Factory payrollFactory overheadSalesCost of goods soldRaw materials inventoryGoods in process inventoryPrepaid insuranceFinished goods inventory | |||
| g. | (Click to select)Property taxes payableFactory payrollFactory overheadCost of goods soldPrepaid insuranceFinished goods inventoryAccounts receivableGoods in process inventory | ||
| (Click to select)Factory PayrollFactory overheadGoods in process inventoryCost of goods soldAccounts receivableFinished goods inventoryProperty taxes payablePrepaid insurance | |||
| h. | (Click to select)Prepaid insuranceFactory payrollFinished goods inventorySalesFactory overheadGoods in process inventoryCost of goods soldAccounts receivable | ||
| (Click to select)Factory overheadCost of goods soldGoods in process inventorySalesFinished goods inventoryAccounts receivablePrepaid insuranceFactory payroll | |||
| (Click to select)Factory payrollAccounts receivableFinished goods inventoryCost of goods soldFactory overheadRaw materials inventorySalesCash | |||
| (Click to select)Cost of goods soldFinished goods inventoryFactory payrollFactory overheadSalesCashAccounts receivableRaw materials inventory | |||
| i. | (Click to select)Property taxes payablePrepaid insuranceSalesFactory overheadAccum. Depreciation-factory equipmentGoods in process inventoryAccum. depreciation-factory buildingCost of goods sold | ||
| (Click to select)SalesCost of goods soldProperty taxes payableAccum. depreciation-factory buildingFactory overheadPrepaid insuranceAccum. depreciation-factory equipmentGoods in process inventory | |||
| (Click to select)Property taxes payableGoods in process inventoryPrepaid insuranceCost of goods soldAccum. depreciation-factory buildingFactory overheadSalesAccum. depreciation-factory equipment | |||
| (Click to select)Accum. depreciation-factory equipmentCost of goods soldGoods in process inventoryPrepaid insuranceAccum. depreciation-factory buildingProperty taxes payableFactory overheadSales | |||
| (Click to select)Goods in process inventoryProperty taxes payableSalesAccum. depreciation-factory equipmentCost of goods soldFactory overheadAccum. depreciation-factory buildingPrepaid insurance | |||
| j. | (Click to select)Factory overheadSalesRaw materials inventoryFactory payrollFinished goods inventoryCashGoods in process inventoryAccounts receivable | ||
| (Click to select)Raw materials inventorySalesFactory payrollFinished goods inventoryGoods in process inventoryFactory overheadCashAccounts receivable | |||
27.
Required information
| 4. |
Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in your response.) |
| Reports of Job Costs | |
| Goods in Process Inventory | |
| (Click to select)Job 137Job 136Job 139Job 138 | $ |
| (Click to select)Job 139Job 137Job 138Job 140Job 136 | |
| Balance | $ |
| Finished Goods Inventory | |
| (Click to select)Job 137Job 136Job 140Job 138Job 139 | $ |
| Balance | $ |
| Cost of Goods Sold | |
| (Click to select)Job 139Job 136Job 137Job 140 | $ |
| (Click to select)Job 138Job 137Job 140Job 136Job 139 | |
| Balance | $ |
In: Accounting