Statz Company had sales of $1,900,000 and related cost of goods sold of $1,100,000 for its first year of operations ending December 31, 20Y1. Statz provides customers a refund for any returned or damaged merchandise. At the end of 20Y1, Statz Company estimates that customers will request refunds for 1.7% of sales and estimates that merchandise costing $12,000 will be returned. Assume that on February 3, 20Y2, Buck Co. returned merchandise with an invoice amount of $5,300 for a cash refund. The returned merchandise originally cost Statz Company $3,200.Required:
a. Journalize the adjusting entries on December 31 to record the expected customer returns.
b. Journalize the entries to record the returned merchandise and cash refund to Buck Co. on February 3.

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Answer 1
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pasensya na di ko alam ang sagot


Related Questions

DeBerg Company has the following sales projections for its second and third quarters: April $100,000 May $120,000 June $140,000 July $160,000 August $150,000 September $130,000 Normal cash collection experience has been that 50% of sales are collected during the month of sale, 30% in the month following sale, and 15% in the second month following sale. The remaining 5% of sales is never collected. Prepare the schedule of cash collections for the third quarter, by month and in total.
Fitzgerald Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities their activity cost rates as follows:Ordering $95 per purchase orderDelivery and receipt of merchandise $76 per deliveryShelf-stocking $19 per hourCustomer support and assistance $0.15 per item soldThe revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area usage of the three product lines are as follows:Baked Goods Milk and Fruit Juice Frozen ProductsFinancial data Revenues $60,000 $66,500 $50,500Cost of goods sold $41,000 $51,000 $32,000Store support $12,300 $15,300 $9,600Activity-area usage (cost-allocation base) Ordering (purchase orders) 44 24 14Delivery (deliveries) 120 60 36Shelf-stocking (hours) 170 150 20Customer support (items sold) 15,400 20,200 7,960Under its simple costing system, FS allocated support costs to products at the rate of 30% of the cost of goods sold.Required:1. Use the simple costing system to prepare a product-line profitability report for FS.2. Use the ABC system to prepare a product-line profitability report for FS.3. What new insights does the ABC system in requirement 2 provide to FS managers?
Maintenance money for an athletic complex has been sought. Mr. Kendall, the Athletic Director, would like to solicit a donation to cover all future expected maintenance costs for the building. These maintenance costs are expected to be $1 million each year for the first five years, $1.3 million each year for years 6 through 10, and $1.5 million each year after that. (The building has an indefinite service life.)If the money is placed in the account that will pay 5% interest compounded annually, how large should the gift be?
An asset is said to be illiquid when: Group of answer choices it cannot be used to settle debts. it cannot act as a store of value. it is an illegal tender. it cannot be readily exchanged for goods. it lacks purchasing power.
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The following data from the just completed year are taken from the accounting records of Mason Company: Sales$658,000 Direct labor cost$83,000 Raw material purchases$135,000 Selling expenses$106,000 Administrative expenses$46,000 Manufacturing overhead applied to work in process$202,000 Actual manufacturing overhead costs$224,000 InventoriesBeginningEnding Raw materials$8,800$10,200 Work in process$5,900$20,500 Finished goods$74,000$25,100 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement.

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Answer:

1. Prepare a schedule of cost of goods manufactured

schedule of cost of goods manufactured

Direct labor cost                                        $83,000

Raw Materials                                           $133,000

Manufacturing overhead                         $202,000

Add Beginning Work In Process                 $5,900

Less Ending  Work In Process                 ($20,500)

cost of goods manufactured                    $403,400

2. Prepare a schedule of cost of goods sold

schedule of cost of goods sold

Begining Finished goods                       $74,000

Add cost of goods manufactured        $403,400

Less Ending Finished goods                 ($25,100)

Add Under- Applied Overheads           $22,000

cost of goods sold                                $473,300

3. Prepare an income statement.

Sales                                                      $658,000

Less cost of goods sold                       ($473,300)

Gross Profit                                            $184,700

Less Operating Expenses

Selling expenses                                  ($106,000)

Administrative expenses                      ($46,000)

Net Income                                             $ 32,700

Explanation:

1. Prepare a schedule of cost of goods manufactured

Raw Materials Consumed in Production

Begining Raw Materials Inventory              $8,800

Add Raw material purchases                   $135,000

Less Ending Raw Materials Inventory      ($10,800)

Raw Materials Consumed in Production $133,000

schedule of cost of goods manufactured

Direct labor cost                                        $83,000

Raw Materials                                           $133,000

Manufacturing overhead                         $202,000

Add Beginning Work In Process                 $5,900

Less Ending  Work In Process                 ($20,500)

cost of goods manufactured                    $403,400

2. Prepare a schedule of cost of goods sold

Actual manufacturing overhead costs ($224,000) > Applied Manufacturing overhead($202,000)

Under- Applied Overheads

Applied Manufacturing overhead        $202,000

Actual manufacturing overhead costs $224,000

Under- Applied Overheads                    $22,000

schedule of cost of goods sold

Begining Finished goods                       $74,000

Add cost of goods manufactured        $403,400

Less Ending Finished goods                 ($25,100)

Add Under- Applied Overheads           $22,000

cost of goods sold                                $473,300

3. Prepare an income statement.

Sales                                                      $658,000

Less cost of goods sold                       ($473,300)

Gross Profit                                            $184,700

Less Operating Expenses

Selling expenses                                  ($106,000)

Administrative expenses                      ($46,000)

Net Income                                             $ 32,700

Amazon.com, Inc., headquartered in Seattle, WA, started its electronic commerce business in 1995 and expanded rapidly. The following transactions occurred during a recent year (dollars in millions):1. Issued stock for $623 cash (example).
2. Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account.
3. Paid $5,000 in principal and $300 in interest expense on long-term debt.
4. Earned $177,866 in sales revenue; collected $123,949 in cash with the customers owing the rest on their Amazon credit card account.
5. Incurred $25,249 in shipping expenses, all on credit.
6. Paid $118,241 cash on accounts owed to suppliers.
7. Incurred $10,069 in marketing expenses; paid cash.
8. Collected $38,200 in cash from customers paying on their Amazon credit card account.
9. Borrowed $16,231 in cash as long-term debt.
10. Used inventory costing $111,934 when sold to customers.
11. Paid $830 in income tax recorded as an expense in the prior year.

Required:

For each of the transactions, complete the tabulation, indicating the effect (positive value for increase, negative value for decrease, and leave blank if no effect) of each transaction.

Answers

Final answer:

This question is a test of understanding accounting principles and how various transactions impact a business's accounts. The student is required to analyze several transactions for Amazon.com, Inc., determining for each one how it affects the company's assets, liabilities, equity, revenue, and expenses.

Explanation:

To respond to this question will require understanding of accounting and financial transactions and the resulting impacts on business accounts, in this case, Amazon.com, Inc. For example, when Amazon issued stock for $623 cash, this increased cash (an asset) by $623 million and equity by the same amount. Buying equipment costing $6320 while paying $4893 in cash and charging the rest on the account reduced cash by $4893 and increased both equipment (another asset) by $6320 and accounts payable (a liability) by $1427 million ($6320 - $4893). Similarly, you can analyze other transactions: principal and interest payments on debt reduce cash and long-term debt or interest expense; generating sales revenue increases revenue and accounts receivable or cash; incurring expenses (e.g., shipping, marketing) increases expense and accounts payable or decreases cash; borrowing cash increases both cash and long-term debt, etc. Understanding the transactions in this way is central to the accounting process, which creates the financial statements that give stakeholders important information about a business's financial health.

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Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted sales data for the company: January February March April Total sales $50,000 $60,000 $40,000 $30,000 What is the amount of cash that should be collected in March

Answers

Answer:

The amount of cash collected in March should be:

$51,000.

Explanation:

a) Data and Calculations:

Budgeted sales and Cash Collections:

                                           January    February       March         April

Total sales                         $50,000    $60,000     $40,000    $30,000

Collections:

35% month of sales             17,500       21,000         14,000       10,500

45% month following                            22,500        27,000       18,000

20% second month                                                    10,000

Total collections in March                                       $51,000

b) The above calculations concentrated on the month of March, being the month of interest.  Though, sales on account totals $40,000, the cash collections for the month amounts to $51,000.  This arises from cash collections from the months of January and February.

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 0.83 per sq. ft. $ 9.96 Direct labor 0.25 hr. $ 10.50 per hr. 2.62 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 2.20 per hr. 0.55 Fixed manufacturing overhead $345,800 ÷ 910,000 units) 0.38 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,040,000 Number of square feet of plastic used 11,400,000 Cost of plastic purchased and used $ 9,120,000 Number of labor hours worked 308,000 Direct labor cost $ 3,449,600 Variable overhead cost $ 689,000 Fixed overhead cost $ 365,000 Required: Calculate Parker Plastic’s direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

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Answer:

Direct Material Price Variance = (Actual price - standard price) x actual quantity purchased

Direct Material Price Variance = ($0.80 - $0.83) x 11400000 = $342000 (F)

Actual Price = $9120000 / 11400000 = $0.80

Direct Material Quantity Variance = (Actual quantity - standard quantity) x Standard Price

Direct Material Quantity Variance = (11400000 - 12480000) x $0.83 = $896400 (F)

Standard Quantity = 1040000 x 12 = 12480000

Final answer:

The direct materials price variance is $342,000 unfavorable and the direct materials quantity variance is $9,351,200 favorable.

Explanation:

To calculate Parker Plastic's direct materials price variance, we need to compare the standard price per unit of direct materials with the actual price per unit. The formula for calculating the price variance is (Actual Price - Standard Price) * Actual Quantity.

Using the given information, the actual price per unit is $0.80 per sq. ft, so the price variance is ($0.80 - $0.83) * 11,400,000 sq. ft = $342,000 U.

To calculate the direct materials quantity variance, we need to compare the standard quantity per unit of direct materials with the actual usage. The formula for calculating the quantity variance is (Actual Quantity - Standard Quantity) * Standard Price.

Using the given information, the actual usage is 11,400,000 sq. ft, so the quantity variance is (11,400,000 - 1,040,000) * $0.83 = $9,351,200 F.

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Today (year 0), a new 7-megawatt (MW) solar panel farm is constructed at a direct cost of $10 million. The indirect cost of 10% of the direct cost was spent. Four years from today, a smaller 6-MW solar farm will be added to the existing farm. The cost indices of today and after 4 years are 400 and 600 respectively. If the cost-capacity factor is 0.75 for solar panel construction, what is the estimated total capital investment (direct indirect) for the smaller 6-MW farm

Answers

Answer:

14.70 m

Explanation:

The computation of estimated total capital investment (direct indirect) for the smaller 6-MW farm is shown below:-

Cost of 6MW plant = Cost of 7MW today × (Index today ÷ Index in past) × (Capacity of 6MW plant ÷ Capacity of 7MW plant )^Cost capacity factor

= = 1.1 × 10m × (600 ÷ 400) × (6 ÷ 7)^0.75

= 14.6985

or

= 14.70 m

So, for computing the cost of 6MW plant we simply applied the above formula.

The Baldwin's workforce complement will grow by 10% (rounded to the nearest person) next year. Ignoring downsizing from automating, what would their total recruiting cost be? Assume Baldwin spends the same amount extra above the $1,000 recruiting base as they did last year. Relevant information: The workforce complement this year is 471, recruiting cost is 543k, recruiting spend is 5000k. Answer choices: 3.108 mil, 235k, 2.59 mil, or 282k

Answers

Answer:

3.108 mi

Explanation:

at present the workforce complement = 471 which has to grow by 10%

So, the complements after growth = 471 x 1.1 = 518 (rounded off)

Total recruiting cost = No. of complements x ($1000 + Recruiting spend)

= 518 x ($1000 + $5000)

= $3,108,000 i.e. 3.108 mi

Final answer:

The recruitment cost for Baldwin's workforce next year, given the same additional spend per person as the previous year and a 10% increase in the workforce, is expected to be $2.842866 Million. This isn't among the answer options given, which may suggest an error in the question or in the options.

Explanation:

In this question, the Baldwin's workforce complement is expected to grow by 10% next year. The workforce complement this year is 471, meaning it would become 471×1.1=518 next year (rounded to the nearest person). We were given that the recruiting cost this year is 543k, and the additional amount spent above the $1,000 recruiting base last year is $5,000k - $543k = $4,457k.

Assuming the Baldwin spends the same additional amount as they did last year, their total recruiting cost next year can be estimated. Given: Base Recruiting cost = $1,000 , Additional Recruiting cost = $4,457/person. Hence , if they hire 518 people, The total cost of the recruiting would be (Base cost + Additional per person cost)× number of people hired = (1000+4457)× 518 = $2.842866 Million.

However the given options do not include this amount, so there might be an error in the question or in the specified options.

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