Photo Frame Company had beginning Work in Process inventory of 1,200 units. There were 3,300 units of product started during the period. Ending Work in Process inventory consisted of 1,500 units that were 50% complete. The total dollar cost associated with production of inventory was $88,000. The cost per equivalent whole unit would be which of the followingA. $51
B. $34
C. $45
D. $37

Answers

Answer 1
Answer:

Answer:

$23.47

Explanation:

Given that,

Beginning Work in Process inventory = 1,200 units

Units started = 3,300 units

Ending Work in Process = 1,500 units

Total dollar cost = $88,000

Finished units:

= Beginning Work in Process inventory + Units started - Ending Work in Process

= 1,200 units + 3,300 units - 1,500 units

= 3,000 units

Equivalent units:

= (Finished units × 100%) + (Ending Work in Process × 50%)

= (3,000 × 100%) + (1,500 × 50%)

= 3,000 units + 750 units

= 3,750 units

Cost per equivalent whole unit:

= Total dollar cost ÷ Equivalent units

= $88,000 ÷ 3,750

= $23.47


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Answers

Sunset products

Journal entry

1. Dr Material 20500

              Cr Account payable 20500

(Material purchased on account)

2. Dr work in process 1050

                       Cr Material   1050

   (material issued)

3. Dr Material 25100

                      Cr Accounts payable 25100

( Material purchased on account )

4. Dr Accounts payable  20500

                                    Cr Cash 20500

  (Paid for material purchased on account)

5. Dr Work in process 30100

                              Cr Material 30100

   ( Direct material issued to production department)

6. Dr Work in process  25500

        Cr  Wages payable           25500

       ( Direct labor cost incurred)

7. Dr Factory overhead 21600

                     Cr Cash            21600

      ( Paid cash for utilities)

8. Dr  Work in process  (25500*110%) 28050

                Cr Applied overhead                                   28050

         (Applied overhead)

9. Dr Factory overhead 5100

              Cr  Accumulated depreciation  5100

      (To record depreciation)

T-account

         Work in process                                           Material          

Dr___________Cr____                             DR ___________CR

   16600------                                                       9150    -----

  1050 -----                                                         20500 ---- 1050

  30100 -----                                                        25100--- 30100

25500---

28050---

   Accounts payable                                                    Cash

Dr____________Cr_                                        DR ___________Cr

             ---  20500                                                          ---- 20500

           -----  25100                                                           ----21600

20500-----

Factory overhead                                                     Wages payable

Dr ____________Cr                                         Dr _____________Cr

   21600---  

                                                                                         -----25500

5100---

Applied factory overhead                                 Accumulated depreciation

Dr_____________Cr                                         Dr ___________Cr_

             ----28050                                                          ---5100

Cost of goods sold                                                     Finished goods

Dr_____________Cr                                        Dr ______________Cr

                                                                     ( open)   65100 ---  

                                                                               101300       --- 36600 (end)  

 

                                                   

Dr Finished goods 101300

        Cr   Work in process     101300

     (move work in process to finished goods)  

Dr Cost of goods sold  129800

                           Finishd goods   129800

      (move finished goods to cost of goods sold)

The purpose of sobriety checkpoints that are set up by community and state police is to deter drunk driving and ultimately save lives.While not mandated,the makers of Blackberry™ have complied with the public request of several legislators and have obediently removed apps that permit smartphone users to navigate around the checkpoints.Google™ and Apple™ have elected not to honor such requests.Google said the apps do not violate the company's content policy.After studying about ethics and social responsibility,which of the following statements applies to this situation? A) Laws represent the minimum guidelines that companies must follow,whereas a firm's ethical stance may venture beyond the minimum level of compliance.
B) Google and Apple are showing corporate social responsibility because they demonstrate concern for their investors,which is exactly where their focus should be.
C) Blackberry is acting philanthropically toward government.
D) Google and Apple are showing their distrust for big government,and their avoidance of contributing toward philanthropic causes.

Answers

Answer:

A) Laws represent the minimum guidelines that companies must follow,whereas a firm's ethical stance may venture beyond the minimum level of compliance.

Explanation:

In the given scenario there are laws that allows community and state police to set up sobriety check points that discourages drunk drivers and saves lives.

The inclusion or removal of applications that helps drunk drivers avoid these checkpoints is not covered by the law. So if a company decides to include such applications it is at their discretion.

Blackberry have chosen to remove applications that helps drunk drivers avoid checkpoints. This is an example of when a company has ventured beyond the minimum level of compliance because of their ethical stance.

Google and Apple however have only ventured beyond the minimum compliance level because they have refused to honour requests by legislators to remove apps that permit smartphone users to navigate around the checkpoints.

The statement that  applies to this situation is : "Laws represent the minimum guidelines that companies must follow, whereas a firm's ethical stance may venture beyond the minimum level of compliance."

The correct answer is option A

In the scenario described, the companies are facing a situation where lawmakers have requested the removal of apps that allow users to navigate around sobriety checkpoints.

Option A is the most suitable because it reflects the fundamental distinction between legal compliance (following the law) and ethical behavior (going beyond what the law mandates). Let's break it down further:

Laws represent the minimum guidelines that companies must follow: This statement acknowledges that companies are legally obligated to comply with the laws and regulations of the jurisdictions in which they operate. In this case, lawmakers have made a request, but it's not legally mandated to remove these apps.

A firm's ethical stance may venture beyond the minimum level of compliance: This part of the statement highlights that ethical behavior goes beyond what is legally required.

Therefore, option A is correct.

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On Mar 3, L. Lyons withdrew $100 for personal use. Use your knowledge of what a correct journal entry should look like to identify what would be included.

Answers

Answer:

L. Lyons Company

Correct Journal Entry

Debit L.Lyons, Drawings $100

Credit Cash $100

To record the cash withdrawn by L. Lyons for personal use.

Explanation:

When the owner, L. Lyons, withdraws cash for personal use, it reduces the owner's equity interest in the business.  Cash as an asset is also reduced by the same amount.  Therefore, the double entry should be a debit to the Owner's Capital account (here represented by Drawings) and a credit to the Cash account.

Final answer:

L. Lyons withdrawal of $100 would be treated as an owner's draw, reflecting a decrease in the company's assets. A journal entry would debit the owner's draw account and credit the cash/bank account.

Explanation:

When L. Lyons withdrew $100 for personal use, this would have been treated as an owner's draw and should be reflected in the financial records of the business. A correct journal entry would involve debiting the owner's draw account and crediting the cash or bank account. Why? The money is going out of the business (hence a decrease in the company's assets), and it's going towards the owner, so it's an owner's draw. So, the journal entry would look as follows:

  • Debit: Owner's Draw $100
  • Credit: Cash/Bank $100

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Insider trading is seen as a threat to the functionality of the financial markets. Write a short paragraph describing why this is so.

Answers

Answer:

insiders can cheat the market.

Explanation:

They can do things on the inside to make a stock go up or down. this can be an advantage to buying in low and selling high. Elon Musk did something similar, (put this in your answer for a kick) as he used his social influence to lower his stock, by saying its "overpriced" making people sell it. when the stock fell, more investors used the buying in low strategy, and he split the stock to allow smaller investors to buy into the stock, giving him 8 BILLION dollars in one market day. (I LOVE THE STOCK MARKET, IF YOU WANT TO LEARN POST A COMMENT AND I WILL TEACH YOU A LOT!!)

Final answer:

Insider trading is a threat to financial markets because it disrupts the fairness and transparency necessary in these markets. It involves using confidential info to make advantageous trades, giving some an unfair advantage and undermining trust in the market.

Explanation:

Insider trading is indeed considered a threat to the functionality of financial markets. This is primarily due to the nature of insider trading, where confidential, non-public information about a company is used to make advantageous trades. This information imbalance disrupts the fairness and transparency that the financial markets rely on to operate efficiently. For instance, if a company's internal member knows something crucial that could significantly impact the company's stock price and trades based on this information before it is publicly released, then they have an unfair advantage over other market participants. This can lead to a lack of confidence and trust in the market, which is detrimental to the smooth functioning of financial markets.

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Preparing a Sales Budget Patrick Inc. sells industrial solvents in 5-gallon drums. Patrick expects the following units to be sold in the first three months of the coming year: January 41,000 February 38,000 March 50,000 The average price for a drum is $35. Required: Prepare a sales budget for the first 3 months of the coming year, showing units and sales revenue by month and in total for the quarter. Do not include a multiplication symbol as part of your answer. Patrick Inc. Sales Budget For the Coming Quarter January February March 1st Quarter Total Units Price $ $ $ $ Sales $ $ $ $

Answers

Answer:

Patrick Inc.      

Sales Budget    

For the First Quarter    

January February March Total Quarter 1

Sale Units  41,000   38,000   50,000   129,000  

Average Selling Price per Unit $35.00  $35.00  $35.00  

Sales Value   $1,435,000   $1,330,000   $1,750,000   $4,515,000  

Explanation:

The Sales unit for each month is multiplied by its average sales price for e.g for January (41,000 units × by $35 = $ 1,435,000)

The Quarter totals (Units and sales Values in $) are added up to give the answer under the heading of Total Quarter 1.

The working is also attached with the answer.

Final answer:

For Patrick Inc., the sales budget for the first quarter is calculated by multiplying the expected units sold each month by the average price per unit. The total sales for the first quarter amount to $4,515,000.

Explanation:

Preparing a sales budget for Patrick Inc. involves multiplying the units sold each month by the price per unit. The average price for a 5-gallon drum of industrial solvent is $35.

For January: 41,000 units * $35/unit = $1,435,000.

For February: 38,000 units * $35/unit = $1,330,000.

For March: 50,000 units * $35/unit = $1,750,000.

Adding these amounts will give the total revenue for the 1st Quarter: $1,435,000 (January) + $1,330,000 (February) + $1,750,000 (March) = $4,515,000.

So, the sales budget for the first quarter would be as follows:
January: $1,435,000
February: $1,330,000
March: $1,750,000
Total first Quarter: $4,515,000.

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In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 50 persons working an average of 2,500 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2017 Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment 494, 000 Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs 50,000 Total estimated overhead costs $1,500, 000 $ 333, 200 128,000 154, 000 102,000 82, 000 74,000 82,800 At the end of 2017, records show the company incurred $1,600,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $618,000, Job 202, $577,000; Job 203, $312,000; Job 204, $730,000, and Job 205, $328,000. In addition, Job 206 is in process at the end of 2017 and had been charged $31,000 for direct labor. No jobs were in process at the end of 2016. The company's predetermined overhead rate is based on direct labor cost

Answers

Answer: The answer is ($76,280,000)

Explanation:

POAR = Budgeted Overhead / Budgeted labour cost

Total direct labour cost = hours worked × wage rate per hour

Hours worked = 2,500 hours , wage rate per hour = $20

= 2,500 × 20

= $50,000

Budgeted Overhead = $1,500,000, Budgeted labour cost = $50,000

= 1,500,000 / 50,000

= 30 × actual activity

Actual activity direct labour = 618,000 +577,000 + 310,000 + 730,000 + 328,000 + 31,000 = 2,596,000

Overhead absorbed = 30 × 2,596,000

= 77,880,000

Actual Overhead = 1,600,000

Actual Overhead - Overhead absorbed

= 1,600,000 - 77,880,000

= ($76,280,000)

Since the overhead absorbed is greater than actual overhead, this is known as over absorption.

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