Answer:
Pecan Theatre Inc.
Average annual percentage return
Cost Market 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6
per share
Preferred stock $20.00 $25.00 2% 2% 2% 2% 2% 2%
Common stock $15.00 $17.50 0% 0% 0% 0.7% 0.8% 0.11%
Explanation:
a) Data and Calculations:
Dividends: Cumulative Common Stock
Preferred Stock Dividends
Dividends Per share Per share
20Y1, $80,000 $80,000 $0.40 $0 $0
20Y2, $90,000 90,000 $0.40 0 $0
20Y3, $150,000 150,000 $0.40 0 $0
20Y4, $150,000 100,000 $0.40 50,000 $0.10
20Y5, $160,000 100,000 $0.40 60,000 $0.12
20Y6, $180,000 100,000 $0.40 80,000 $0.16
Average annual percentage return
Cost Market 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6
per share
Preferred stock $20.00 $25.00 2% 2% 2% 2% 2% 2%
Common stock $15.00 $17.50 0% 0% 0% 0.7% 0.8% 0.11%
Average annual percentage return = Dividend per share/Initial Cost per share
Mr. and Mrs. Nunez attended one of your sales presentations. They’ve asked you to come to their home to clear up a few questions. During the presentation, Mrs. Nunez feels tired and tells you that her husband can finish things up. She goes to bed. At the end of your discussion, Mr. Nunez says that he wants to enroll both himself and his wife. What should you do?
Answer: As long as she is able to do so, only Mrs. Nunez can sign her enrollment form. Mrs. Nunez will have to wake up to sign her form or do so at another time.
Explanation:
Following the information given in the question, since Mr. Nunez says that he wants to enroll both himself and his wife, as long as she is able to do so, only Mrs. Nunez can sign her enrollment form. Mrs. Nunez will have to wake up to sign her form or do so at another time.
It should be noted that it's not appropriate for Mr Nunez to sign the enrollment form for her wife. The wife should be the one doing so in order to in order to make sure that she agrees to the terms of the form and her signature will officially make it enforceable.
Which of the following approaches for calculating the market value of a property involves estimating the dollar value associated with replacing the property new, as well as determining the loss in value due to physical, functional, and external obsolescence?
a. income approach
b. sales comparison approach
c. cost approach
d. Investment approach
Answer:
c. cost approach
Explanation:
The cost approach is a real estate valuation method in which the price estimated regarding the buyer that have to pay for the property and the same is equivalnet to the cost for creating a buidling.
Here the property value should be equivalent to the land cost also add the construction cost and minus the depreciation expense
So as per the given situation, it is the cost approach that determined the market value of the property
Mary has been asked to rank her preferences between three baskets of goods, X, Y, and Z. If Mary prefers Y to Z but does not care if she gets X or Y, then:______.
a. Z is on a lower indifference curve than X.
b. Y and Z are on the same indifference curve.
c. X is on a higher indifference curve than Y. Mary is indifferent between baskets X and Y. Therefore, these two points must be on the same indifference curve.
d. Y is on a higher indifference curve than Z but it is impossible to determine whether Z is on a higher, lower, or the same indifference curve as X.
Mary has been asked to rank the three baskets of goods—X, Y, and Z—in order of her choices. If Mary would rather have Y than Z but is unconcerned whether she receives X or Y, Z is on a lower indifference curve than X. Option (a) is correct, so.
What is goods?
Anything can be considered a good, including merchandise, suppliers, raw materials, and finished goods. All movable goods that are sold to a specific customer.
If Mary prefers Y to Z but does not care whether she receives X or Y, then Z is on a lower indifference curve than X.
As a result, option (a) is correct.
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Josh is an HR Manager at RoxCom LLC. He is responsible for conducting performance appraisals for all entry-level employees in his organization. He implements a guided self-appraisal system using management by objectives (MBO). As part of the process, he reviews the job description and the key activities that constitute each employee's job. What is most likely to be Josh's next step?
Answer:
Development of perfomance standards.
Explanation:
Based on the information in the question above, Josh's next step would likely be to develop the performance standards to be implemented in the guided self-assessment system using management by objectives.
The MBO is a management strategy used in organizations so that there is continuous improvement in processes and organizational performance in the internal and external environment, so in a self-assessment system guided by the MBO it is necessary to develop performance standards so that there is a parameter of the sought-after ideal of employee performance, so that self-assessment is guided by such standards. In this type of strategic management, it is necessary to share the objectives throughout the organization, so that they are clear, precise and shared as part of the organizational culture.
Martin Corporation’s (a C corporation) bookkeeper told the owner that she could not have all the tax information ready for the accountant immediately after the tax year end of June 30. She was having surgery and asked if the tax return could be postponed. The accountant’s answer should be:
Answer:
Yes, we can request an extension until the following April 15
Explanation:
In general, there is a room for automatic extension of 6 months for
a corporation to file its income tax return so far appropriate form (7004) has been filed by the corporation, and
estimated unpaid tax liability is been paid before date of the return is due. It should be noted that until tax year 2026, Until June 30 fiscal-year which is tax year 2026 there is duration of 7 months given to the corporation. Though there could be rovoking of the extension by The IRS at any time. tax return of Martin will be due under normall condition by September 15, but since extension comes in it will be due April 15.
In recording the acquisition cost of an entire business:_________
(a) goodwill is recorded as the excess of cost over the fair value of identifiable net assets.
(b) assets are recorded at the seller's carrying amounts.
(c) goodwill, if it exists, is never recorded.
(d) goodwill is recorded as the excess of cost over the carrying amount of identifiable net assets.
Answer: (a) Goodwill is recorded as the excess of cost over the fair value of identifiable net assets.
An individual taxpayer reports the following items for the current year: Ordinary income from Partnership A, operating a movie theater in which the taxpayer materially participates $70,000 Net loss from Partnership B, operating an equipment rental business in which the taxpayer does not materially participate (9,000) Rental income from building rented to a third party 7,000 Short-term capital gain from sale of stock 4,000 What is the taxpayer’s adjusted gross income for the year?
Answer:
$74,000
Explanation:
Calculation to determine the taxpayer’s adjusted gross income for the year
Taxpayer’s adjusted gross income=Net loss from Partnership B+Capital gain from sale of stock
Let plug in the formula
Taxpayer’s adjusted gross income=$70,000+ $4,000
Taxpayer’s adjusted gross income=$74,000
Therefore the taxpayer’s adjusted gross income for the year is $74,000
Steve King and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to King of $128,250. Interest of 7% on each partner's capital balance on January 1. Any remaining net income divided to King and Stevens, 1:2. King and Stevens had $75,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was $225,000. How much is distributed to King and Stevens
Answer:
King and Stevens Partnership
King Stevens Total
Distributions $162,110 $62,890 $225,000
Explanation:
a) Data and Calculations:
Annual salary allowance to King = $128,250
Interest rate on capital = 7%
Income sharing ratio = 1:2 King and Stevens
Net income for the year = $225,000
Capital balances = $75,000 King and $81,000 Stevens
King Stevens Total
Capital $75,000 $81,000 $156,000
Net income $225,000
Annual salary 128,250 0 (128,250)
Interest on capital 5,250 5,670 (10,920)
Share of profits 28,610 57,220 (85,830)
Capital, ending $237,110 $143,890 $381,000
Distributions $162,110 $62,890 $225,000
Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $130,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $16,000 per year to operate and maintain, but would save $46,000 per year in labor and other costs. The old machine can be sold now for scrap for $13,000. The simple rate of return on the new machine is closest to (Ignore income taxes.):
Answer:
The simple rate of return on the new machine is closest to 14.53%.
Explanation:
Assuming a straight-line depreciation method, we have:
Annual deprecation = Cost of the new machine / Useful life = $130,000 / 10 = $13,000
Net annual benefit = Annual saving - Annual operating and maintenance cost - Annual deprecation = $46,000 - $16,000 - $13,000 = $17,000
Net investment = Cost of the new machine - Scrap value of the old machine = $130,000 - $13,000 = $117,000
Simple rate of return on the new machine = Net annual benefit / Net investment = $17,000 / $117,000 = 0.1453, or 14.53%
Therefore, the simple rate of return on the new machine is closest to 14.53%.
Biochemical Corp. requires $690,000 in financing over the next three years. The firm can borrow the funds for three years at 9.25 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. Assume interest is paid in full at the end of each year.
a. Determine the total interest cost under each plan.
Interest Cost
Long-term fixed-rate $
Short-term variable-rate $
b. Which plan is less costly?
Short-term variable-rate plan
Long-term fixed-rate plan
Answer:
a. We have:
Interest cost of long-term fixed-rate = $191,475
Interest cost of short-term variable-rate = $192,51
b. Long-term fixed rate plan is less costly
Explanation:
a. Determine the total interest cost under each plan.
Interest cost of long-term fixed-rate = Amount required to be borrowed * Fixed interest rate per year * Number of years = $690,000 * 9.25% * 3 = $191,475
Interest cost of short-term variable-rate = (Amount required to be borrowed * First year interest rate) + (Amount required to be borrowed * Second year interest rate) + (Amount required to be borrowed * Third year interest rate) = ($690,000 * 7.50%) + ($690,000 * 12.15%) + (($690,000 * 8.25%) = $192,510
b. Which plan is less costly?
Since the $191,475 interest cost of long-term fixed-rate is less than $192,510 interest cost of short-term variable-rate, this implies that long-term fixed rate plan is less costly.
Sharice is participating in a financial-management webinar in which the speaker is using unfamiliar terms and jargon, so Sharice asks the speaker to clarify the meaning of what he is saying. Which of the following elements of effective listening is Sharice enacting?
a. responding.
b. remembering.
c. hearing.
d. understanding.
e. devaluating.
Answer:
d. understanding
Explanation:
In communication when people share information the different parties go through the following stages in order: hearing, understanding, and responding.
In the given scenario the speaker is using unfamiliar terms and jargon, so Sharice asks the speaker to clarify the meaning of what he is saying.
She is trying to understand what the speaker is saying
You purchased a zero-coupon bond one year ago for $280.83. The market interest rate is now 9 percent. Assume semiannual compounding. If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year
Answer:
3.82%
Explanation:
Calculation to determine total return for the past year
First step is to find the price of the bond today.
P1= $1,000 / [1+(9%/2)]
P1= $1,000 / 1+.045
P1= $1,000 / 1.045
P1= $291.57
Now let determine the total return for the past year using this formula
R=Bond price today - Bond price one year ago/Bond price one year ago
Let plug in the formula
R= ($291.57 – $280.83) / $280.83
R=$10.74/$280.83
R= .0382*100
R=3.82%
Therefore total return for the past year is 3.82%
Green Corporation reported pretax book income of $1,040,000. During the current year, the net reserve for warranties increased by $52,000. In addition, tax depreciation exceeded book depreciation by $110,000. Finally, Green subtracted a dividends received deduction of $26,000 in computing its current-year taxable income. Green's cash tax rate is
Answer:
19.30%
Explanation:
Calculation to determine what Green's cash tax rate is
First step is to calculate the Taxes payable using this formula
Taxes payable = (Pretax book income + provision for warranties - depreciation in excess of books - dividends received deduction) x 21%
Let plug in the formula
Taxes payable= ($1,040,000 + $52,000 - $110,000 - $26,000) x 21%
Taxes payable=$956,000×21%
Taxes payable= $200,760
Now let determine the Cash tax rate using this formula
Cash tax rate = Taxes payable / Pretax book income
Let Plug in the formula
Cash tax rate = $200,760 / $1,040,000
Cash tax rate = .1930
Cash tax rate=19.30%
Therefore Green's cash tax rate is 19.30%
The biggest question Sally has for you is about recovering the initial capital invested which she wishes to bundle as the initial building and land costs well as the future roof and common area expenses. The income stream for the apartment complex is only monthly rent money. How much should she charge for monthly rent in order to at least recover the bundled capital invested
Answer:
Sally should charge $1,280 per month for 18 months.
Explanation:
Sally has bought the land for $8,000 and she has invested in constructing the building $12,040. She has further invested $2,000 for future roof and common area expenses amount to $1,000. The total capital she has invested is $23,040. She should charge $1,280 per month for next 18 months in order to cover the bundled capital investment.
Indentify two causes, a part from a increase in income, of an increase in demand for a product
Answer:
Rise in price of subsitute product.
Fall in price of complementory product.
Increase in number of consumers.
You are the curator of a museum. The museum is running short of funds, so you decide to increase revenue. What should you do to increase revenue if the price elasticity of demand is 0.45? Lower the admission price Nothing, revenue is maximized at current admission price Raise the admission price
Answer:
The answer is "Raise the admission price ".
Explanation:
Users are indeed the museum's curator. The gallery is short of funds, so you decide to improve their revenue. Increase admittance price because demand in this situation is inelastic and higher pricing will lead to larger revenues which generate revenue when the online listing is 0.45.
It won't affect the level that is required. The revenue will increase due to the increase in the price as well as a price inelastic toll on the museum admission, therefore not adversely affected the market.
Standard Quantities Allowed of Labor and Materials Miel Company produces ready-to-cook oatmeal. Each carton of oatmeal requires 18 ounces of rolled oats per carton (the unit quantity standard) and 0.05 labor hour (the unit labor standard). During the year, 750,000 cartons of oatmeal were produced. Required: 1. Calculate the total amount of oats allowed for the actual output. fill in the blank 1 ounces 2. Calculate the total amount of labor hours allowed for the actual output. fill in the blank 2 hours
Answer:
13,500,000 ounces of oatmeal37,500 labor hoursExplanation:
1. Total amount of oats allowed for the actual output:
= Cartons of oatmeal produced * Oatmeal per carton
= 750,000 * 18
= 13,500,000 ounces of oatmeal
2. Labor hours allowed for actual output:
= Cartons of oatmeal produced * Labor hours required
= 750,000 * 0.05
= 37,500 labor hours
Question 4 of 10
Which situation best illustrates the process of capital formation?
O A. A farmer increases his profits by growing a variety of new crops.
B. An artist buys bonds that will increase in value over time.
C. An engineer tries to limit her spending during the week.
O D. A factory worker takes out a high-interest loan to buy a new home.
SUBMIT
Answer:
I think it is B
Explanation:
Answer:
an artist buys bondss that will increase in value over time.
Explanation:
took the test. UwU
Managers make assumptions in CVP analysis. These assumptions include:__________
a) constant total fixed costs. constant total variable costs.
b) constant fixed cost per unit.
c) constant sales volume.
d) constant variable cost per unit.
e) constant selling price per unit.
Answer:
constant variable cost per unit.
constant total fixed cost
constant selling price per unit
Explanation:
Cost-volume-profit (CVP) analysis is a way to found out if the variable and fixed cost should be changed so how it effects the profit of the firm. Also company could applied cost volume profit analysis in order to see how much units they required to sell in order to have break even or reach to the specific minimum profit margin
So in this, the total fixed cost, selling price per unit, and the variable cost per unit should be constant
Notes Receivable differ from Accounts Receivable in that Notes Receivable: Multiple Choice generally charge interest from the day they are signed to the day they are collected. do not have to be created for every new transaction, so they are used more frequently. are generally considered a weaker legal claim. are noncurrent assets.
Answer: generally charge interest from the day they are signed to the day they are collected.
Explanation:
Accounts Receivable show that a customer is owing a certain amount of money for goods that they took on credit. The customer gets to pay back a maximum of the amount of goods they actually bought because no interest is charged.
This changes with the Notes Receivable. These accrue interest from the day they are signed such that the customer will then pay the value of the notes receivable as well as the interest that it accrues on the day it is collected.
Notes Receivables are usually used by customers who are unable to pay off the accounts receivables within a certain period and so opt for a note receivable avenue instead.
A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used.
Goods in process inventory:
Beginning balance $100,800
D.M.
D.L.
O.H. F.G.
Ending balance $131,040
Answer: $113,120
Explanation:
Direct material used = Total cost of manufacturing - Direct labor - Factory overhead
Total cost of manufacturing = Ending WIP + Cost of manufacturing - Beginning WIP
= 131,040 + 324,800 - 100,800
= $355,040
Direct labor = Factory overhead * 100/60
= 90,720 * 100/60
= $151,200
Direct materials used = 355,040 - 151,200 - 90,720
= $113,120
A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $120,000, and the following quantities of product and sales revenues were produced.
Product Pounds Price per Pound
Feed 100,000 $ 0.70
Flour 50,000 2.20
Starch 20,000 1.00
How much of the $120,000 cost should be allocated to flour if the value basis is used?
a) $24,500.
b) $84,000.
c) $66,000.
d) $70,000.
e) $200,000.
Answer:
c) $66,000.
Explanation:
The computation is shown below:
The value allocated is as follows:
Feed (100,000 × 0.7)=70,000
Flour (50,000 × 2.2)=110,000
Starch (20,000 × 1)=20,000
Total 200,000
Now allocation to the flour is
= (110,000 ÷ 200,000 × 120,000)
= $66,000
hence, the option c is correct
Factory overhead costs may include all of the following EXCEPT: Group of answer choices selling costs. indirect labor costs. factory rent. indirect material costs.
Answer:
selling costs
Explanation:
Factory overhead costs are the cost associated with running a manufacturing facility. Factory overhead is also known as manufacturing overhead or work overhead.
Examples of factory overhead include
indirect labor costs
factory rent
indirect material costs.
depreciation of plants and machinery
Sales and administrative cost
Determine the tax basis of the business asset acquired in each of the following cases:
Required:
a. Firm L paid $5,950 cash plus $416 sales tax plus a $500 installation charge for a satellite dish.
b. TTP Inc. acquired inventory in exchange for 800 shares of TTP common stock listed on Nasdaq at $212 per share on the date of exchange.
c. Firm Q acquired machinery in exchange for architectural drawings rendered by Firm’s Q’s junior partner. The partner spent 20 hours on the drawings, and his hourly billing rate is $350.
d. Company C purchased equipment by paying $2,000 cash at date of purchase and financing the $18,000 balance of the price under a three-year deferred payment plan.
Answer:
a. A Cost basis is best:
= Every cost necessary to set up and use the satellite dish:
= Purchase price + Sales tax + Installation tax
= 5,950 + 416 + 500
= $6,866
b. Here the best basis to use is the Fair Market Value of the stock that was exchanged for the inventory:
= (800 * 212)
= $169,600
c. Use Fair Market Value of services rendered by junior partner:
= 20 * 350
= $7,000
d. Use the total payment requirement:
= Cost at purchase date + Balance to be paid
= 2,000 + 18,000
= $20,000
Gamma Inc. manufactures Product X using a single raw material. The standard quantity of input for the month of February was 3,000 units of raw material for 1,000 units of Product X. The actual output for the month of February was 1,300 units. Compute the standard quantity of raw material for actual output (SQ) of Product X.
Answer: 3900 units
Explanation:
The standard quantity of raw material for actual output (SQ) of Product X will be calculated thus:
Standard quantity of raw material per unit will be calculated as the standard quantity of input for February divided by the standard units that was produced in February. This will be;
= 3000/1000
= 3 per unit
Then, the standard quantity of raw material for actual output will be:
= Actual output x Standard quantity of raw material per unit
= 1300 units x 3 per unit
= 3900 units
bRamapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 1,048 4 7 Dinks 2,236 5 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $82,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $102,000. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is
Answer:
Ramapo Company
The factory overhead allocated per unit of Dinks is:
= $56.94.
Explanation:
a) Data and Calculations:
Product Number of Units Direct Labor Machine
Hours Per Unit Hours Per Unit
Blinks 1,048 4 7
Dinks 2,236 5 6
Fabrication Assembly
Estimated overhead $82,200 $102,000
Machine hours:
Blinks 7,336
Dinks 13,416
Total machines hours 20,752
Direct Labor hours:
Blinks 4,192
Dinks 11,180
Total machines hours 15,372
Total factory overhead Blinks Dinks
Fabrication department $29,058 $53,142
Assembly department 27,816 74,184
Total allocated overhead $56,874 $127,326
Units produced 1,048 2,236
Factory overhead per unit $54.27 $56.94 ($127,326/2,236)
Which of the following statements is the most correct?
a. A borrower's long-term debt typically has a higher interest rate than its short-term debt.
b. Debt that is infrequently traded (less liquid) typically has a lower interest rate than similar but highly traded debt.
c. Variable (floating) rate debt is more prevalent when long-term borrowing rates are low.
d. Variable (floating) rate debt should never be used by healthcare providers because it is too risky.
e. Fixed interest rate debt is more prevalent when long-term borrowing rates are high.
Answer:
A
Explanation:
i think it has been explain according to the option
Which part of a persuasive message is NOT part of the actual message but rather a lasting thought
long after the speech is finished?
Thesis statement
O Introduction
O Residual message
O Attention statement
Answer:
Residual message is answer
The Diamond Outlet has current earnings per share of $1.96 and an expected earnings growth rate of 2.2 percent. The required return on the stock is 13 percent and the current book value per share is $12.70. What is the current market value of this stock
Answer:
the current market value of this stock is $15.96
Explanation:
given
current earnings = $1.96 per share
growth rate = 2.2 percent
return on the stock = 13 percent
current book value = $12.70 per share
solution
first we get here return on equity that is
return on equity = [ current earning per share × ( 1 + growth ) ] ÷ book value per share ....................1
return on equity = [tex]\frac{1.96 + (1+0.022)}{12.70}[/tex]
return on equity =15.77 %
and
now we get here payout ration that is
growth rate = retention ration × ROE ....................2
put here value
2.2% = (1 - payout ratio ) × 15.77
payout ratio = 86.05 %
and
now we get here current dividend per share that is
current dividend per share = current earning per share × payout ratio ...........3
put here value
current dividend per share = 1.96 × 86.05 %
current dividend per share = $1.6865
and
now we get here current market value
current market value = [ current dividend per share × ( 1 + growth ) ] ÷ [ required return - growth rate] ....................1
current market value = [Text]\frac{1.6865 \times (1+0.022)}{0.13-0.022}[text]
current market value = [tex]\frac{1.6865 \times (1+0.022)}{0.13-0.022}[/tex]
current market value = $15.96
Collegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,500 of indirect materials and $11,800 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:
Job 301
Direct materials $10,000
Direct labor 8,000
Factory overhead 6,000
Total $24,000
Job 302
Direct materials $20,000
Direct labor 17,000
Factory overhead 12,750
Total $49,750
Job 303
Direct materials $24,000
Direct labor 18,000
Factory overhead â
Job 304
Direct materials $14,000
Direct labor 12,000
Factory overhead â
Required:
Journalize the Jan. 31 summary entries
.
Answer:
Collegiate Publishing Inc.
Journal Entries:
Debit Finished Goods Inventory $73,750
Credit Work in Process:
Job 301 $24,000
Job 302 $49,750
To record the transfer of completed jobs to Finished Goods Inventory.
Debit Work in Process:
Job 303 $24,000
Job 304 $14,000
Credit Raw materials $38,000
To record raw materials used in production.
Debit Work in Process:
Job 303 $18,000
Job 304 $12,000
Credit Payroll $30,000
To record direct labor incurred in production.
Debit Manufacturing Overhead $19,300
Credit Raw materials $7,500
Credit Payroll $11,800
To record manufacturing overhead costs for indirect materials and labor.
Explanation:
a) Data and Calculations:
Indirect materials = $7,500
Indirect labor = $11,800
Job Cost Sheets: Job 301 Job 302 Job 303 Job 304
Direct materials $10,000 $20,000 $24,000 $14,000
Direct labor 8,000 17,000 18,000 12,000
Factory overhead 6,000 12,750
Total $24,000 $49,750
Summary Entries:
Finished Goods Inventory $73,750 Work in Process: Job 301 $24,000 Job 302 $49,750
Work in Process: Job 303 $24,000 Job 304 $14,000 Raw materials $38,000
Work in Process: Job 303 $18,000 Job 304 $12,000 Payroll $30,000
Manufacturing Overhead $19,300 Raw materials $7,500 Payroll $11,800
The Jan. 31 summary journal entries are:
a. Dr Work in process $68,000
($10,000+$20,000+$24,000+$14,000)
Dr Factory Overhead $ 7,500
Cr Materials $75,500
($68,000+$7,500)
(To record material used)
b. Dr Work in process $55,000
($8,000+$17,000 +$18,000+$12,000)
Dr Factory Overhead $11,800
Cr Wages Payable $66,800
($55,000+$11,800)
(To record labor used)
c. Dr Work in process $41,250
($55,000×75%)
Cr Factory Overhead $41,250
(To record overhead applied)
Job 301:( $6,000/$8,000=75%)
Job 302:($12,750/$17,000=75%)
d. Dr Finished Goods $73,750
Cr Work in process $73,750
($24,000+$49,750)
(To record goods completed)
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