Answer:
September 11 2017
Dr Cash 600
Cr Sales revenue 600
(to record sales revenue on cash)
Dr Cost of good sold 370
Cr Inventory 370
(to record cost of good sold)
Dr Warranty expenses 54
Cr Warranty liabilities 54
(to accrue for warranty liabilities)
Jul 24 2018
Dr Warranty liabilities 42
Cr Inventory 42
(to record warranty services provided which was accrued)
Explanation:
11 Sep 2017:
- As sell of $600 is made on cash with the cost of good sold is $370, we Dr Cash 600 and Dr Cost of good sold 370 to record increase in cash and in Cost of good sold; and Cr Sales 600 and Cr Inventory 370 to record increase in sales and decrease in Inventory delivered.
- Warranty expenses should be recorded at the time to ensure matching of cost and revenue. Warranty expenses is estimated at 9% of sales, so it will be 9% x 600 = $54. Expenses is recorded and liabilities is accrued.
Jul 24 2018:
Warranty liabilities which was accrued actually occurs. So we Dr Liability by the expenses actually incurred and Cr Inventory consumed for the warranty services $42.
Answer:
Faeber Textile Company frequently factors its accounts receivable. During 2019, Faeber made credit sales of $100,000 to customers, under terms of 2/10, n/30. Faeber records its credit sales using gross price.
Dr Accounts receivable 100,000
Cr Sales revenue 100,000
In 2019, Faeber sold $70,000 of these receivables to a factor. The factor remitted 90% of the accounts receivable factored and charged a 12% commission on the gross amount of the factored receivables.
Dr Cash 54,600
Dr Factoring expense 8,400 (= $70,000 x 12%)
Dr Factoring receivables 7,000
Cr Accounts receivable 70,000
The factoring agreement also requires Faeber to be responsible for any cash discounts taken by customers upon payment of the factored receivables. Faeber is charged for these cash discounts upon reimbursement by the factor. During 2019, the factor collected the remaining amount of the factored receivables, minus the 2% discount on 94% of the collected receivables, and returned the balance owed to Faeber.
Dr Cash 5,684 (=$7,000 - $1,316)
Dr Sales discounts 1,316 (= $70,000 x 94% x 2%)
Cr Factoring receivables 7,000
Faeber collected the remaining amount of the unfactored accounts receivable, minus the 2% discount on 96% of the collected receivables.
Dr Cash 29,424 (= $30,000 - $576)
Dr Sales discounts 576 (= $30,000 x 96% x 2%)
Cr Accounts receivable 30,000
4% of the accounts receivable were collected at 100%, and 96% were collected at 98%.
Answer:
Strategic leaders can help any airline related issue to be solved
Explanation:
Strategic leaders are needed everywhere. An airline company would indeed benefit from a strategic leader and or manager
Answer:
a. 162,750 gallons
b. 168,000 gallons
Explanation:
Step 1 Determine the Units of Closing Work In Process Inventory
Units of Closing Work In Process = Beginning inventory units + units Started this month - units Transferred out
= 30,000+180,000-157,500
= 52,500
Step 2 Determine the equivalent units for materials
Note : materials are 10 percent complete in Units of Closing Work In Process
Units of Closing Work In Process ( 52,500 ×10%) = 5,250
Units Transferred out ( 157,500 ×100%) =157,500
Total =162,750
Step 3 Determine the equivalent units for conversion costs
Note : conversion costs are 20 percent complete in Units of Closing Work In Process
Units of Closing Work In Process ( 52,500 ×20%) = 10,500
Units Transferred out ( 157,500 ×100%) =157,500
Total =168,000
Answer:
The equivalent units for conversion costs using the weighted-average method are 168,000
The equivalent units for materials using the weighted-average method are 162,750
Explanation:
onlon Chemicals
Equivalent units can be calculated by the following
Particulars Units % of Completion Equivalent Units
Mat. Con. Costs Materials C. Costs
Transferred out, 157,500 100 100 157,500 157,500
Ending inventory, 52,500 10 20 5250 10,500
Total Equivalent Units 162,750 168,000
Working
Ending Inventory= Opening + Started - Transferred Out
Ending Inventory=30,000 +180,000 -157,500 = 52,500 gallons
The equivalent units are calculated by two ways either by adding ending inventory and transferred out units or by adding beginning inventory with units started.
$2,000 unfavorable.
$2,000 favorable.
$8,000 favorable.
$6,000 unfavorable.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
At the normal capacity of 16,000 units, budgeted manufacturing overhead is $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced.
Variable overhead rate= 64,000/16,000= $4
Overhead variance= real - allocated
Overhead variance= 250,000 - (4*18,000 + 180,000)= 250,000 - 252,000= 2,000 favorable
Answer:
Convergence
Explanation:
Convergence meaning that the two different entities are coming together. It is also defined as the tendency of the group members to become more alike. It is also known as the company culture, in the sense, that the people who work there, tend to have the similar characteristics.
Therefore, the convergence is the phenomenon which states the shifting of the styles of the individual management in order to become more similar to one another.
Answer:
Job 33 $ 27250
Job 34 $ 31500
Job 35 $ 12325
Cost of Goods Sold Job 33 $ 27250
Finished Goods Inventory Job 34 $ 31500
Work in Process Inventory Job 35 $ 12325
Explanation:
Work in Process Balance on 3/1
Job 33 $ 7,500
Job 34 6,000
Total $ 13,500
Job 33
Direct Materials $3500
Direct Labor 6500
Overheads (150%) 9750
Add Opening WIP 7500
Total Cost $ 27250
We add the Direct Material Direct Labor and Mfg overheads with the opening balance of WIP to get the total cost of given jobs.
Job 34
Direct Materials $6000
Direct Labor 7800
Overheads (150%) 11700
Add Opening WIP 6000
Total Cost $ 31500
Job 35
Direct Materials $4200
Direct Labor 3250
Overheads (150%) 4875
Add Opening WIP ------
Total Cost $ 12325
Cost of Goods Sold Job 33 (given) $ 27250
Finished Goods Inventory Job 34 (given) $ 31500
Work in Process Inventory Job 35(given)$ 12325
It is given in the question that Job 34 is transferred to Finished Goods , Job 35 is still in process and Job 33 is cost of goods sold.
By accounting for beginning balances, cost of materials, labor, and overheads, the costs of Jobs 33, 34, and 35 at end of the month are $27,250, $31,500 and $12,325 respectively. The Work in Process Inventory is $12,325, Finished Goods Inventory is $31,500 and Cost of Goods Sold is $27,250.
To calculate the cost of each job at Oak Creek Furniture Factory (OCFF), we first need to consider all cost factors. These include the beginning balances, additional materials requisitioned, labor hours, and overheads. Job overheads for OCFF are applied as 150 percent of direct labor cost.
Job 33: The initial cost was $7,500. During March, materials costing $3,500 and labor cost of $6,500 were added, making a total of $10,000. Applying the overhead calculation, we find that overheads amount to $6,500 * 1.5 = $9,750. The total cost for job 33 is therefore $7,500 (beginning balance) + $10,000 (material and labor costs) + $9,750 (overhead) = $27,250.
Job 34: Initial cost was $6,000. Material and labor costs for March amount to $6,000 and $7,800 respectively, summing up to $13,800. The overhead equals $7,800 * 1.5 = $11,700. The total cost for job 34 is accordingly $6,000 (beginning balance) + $13,800 (material and labor costs) + $11,700 (overhead) = $31,500.
In regard of Job 35, which is still in progress, only the cost of materials $4,200 and labor $3,250 have been added, totalling $7,450. Calculating overheads, we get $3,250 * 1.5 = $4,875. Therefore, the cost so far for job 35 is $7,450 (material and labor costs) + $4,875 (overhead) = $12,325.
For the balance of the Work in Process Inventory, we just include the cost of Job 35, which isn't finished yet: $12,325.
The Finished Goods Inventory includes the cost of Job 34 which is completed but not sold: $31,500.
Cost of Goods Sold consists of completed and sold jobs, in this case only Job 33: $27,250.
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