Distinction-level Tips for Accounting Dissertation Writing
35. What is Chelsea Containers’ predetermined overhead rate?
(Job cost sheet analysis) You have applied for a cost accounting position with Chelsea Containers. The company controller has asked all candidates to take a quiz to demonstrate their knowledge of job order costing. Chelsea’s job order costing system is based on normal costs, and overhead is applied based on direct labor cost. The following information pertaining to May has been provided to you:
Direct | Applied | |||
Job No. | Material | Direct Labor | Overhead | Total Cost |
67 | $ 35,406 | $13,840 | $15,916 | $ 65,162 |
69 | 109,872 | 14,480 | 16,652 | 141,004 |
70 | 2,436 | 4,000 | 4,600 | 11,036 |
71 | 308,430 | 57,000 | ? | ? |
72 | 57,690 | 4,400 | 5,060 | 67,150 |
You are informed that Job #68 had been completed in April. You are also told that Job #67 was the only job in process at the beginning of May. At that time, the job had been assigned $25,800 for direct material and $7,200 for direct labor. At the end of May, Job #71 had not been completed; all others were complete. Answers to the following questions are required:
a. What is Chelsea Containers’ predetermined overhead rate?
b. What was the total cost of beginning Work in Process Inventory?
c. What were total direct manufacturing costs incurred for May?
d. What was cost of goods manufactured for May?
On January 1, 2017, Loud Company enters into a 2 year contract with a customer for an unlimited talk and 5 GB data wireless plan for $65 per month. The contract includes a smartphone for which the customer pays $j299. Loud also sells the smartphone and monthly service plan separately, charging $649 for the smartphone and $65 for the mointhly service for unlimited talk and 5 GB data wireless plan.
Contract Modification- Assume the same facts above. On July 1, 2017, the customer realizes that she needs less data in her wireless plan and downgrade to the unlimited talk and 2 GB data plan for the remaining term of the contract (18 months). The unlimited talk and 2 GB data plan is priced at $55 per month. The $55 per month is Loud's current stand- alone price for this plan that is available to all customers.
Required
1. How should Loud account for this contract modification?
2. Provide Loud's new monthly revenue recognition journal entry.
37. E3-1 (Transaction Analysis—Service Company) Christine Ewing is a licensed CPA
E3-1 (Transaction Analysis—Service Company) Christine Ewing is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred. April 2 Invested $30,000 cash and equipment valued at $14,000 in the business. 2 Hired a secretary-receptionist at a salary of $290 per week payable monthly. 3 Purchased supplies on account $700. (debit an asset account.) 7 Paid office rent of $600 for the month. 11 Completed a tax assignment and billed client $1,100 for services rendered. (Use Service Revenue account.) 12 Received $3,200 advance on a management consulting engagement. 17 Received cash of $2,300 for services completed for Ferengi Co. 21 Paid insurance expense $110. 30 Paid secretary-receptionist $1,160 for the month. 30 A count of supplies indicated that $120 of supplies had been used. 30 Purchased a new computer for $5,100 with personal funds. (The computer will be used exclusively for business purposes.) Instructions Journalize the transactions in the general journal. (Omit explanations.)
38. The following data were gathered to use in reconciling the bank account of Conway Company:
PE 7-3B Bank reconciliation
The following data were gathered to use in reconciling the bank account of Conway Company:
Balance per bank | $23,900 |
Balance per company records | 8,700 |
Bank service charges | 50 |
Deposit in transit | 5,500 |
Note collected by bank with $450 interest | 9,450 |
Outstanding checks | 11,300 |
a. What is the adjusted balance on the bank reconciliation?
b. Journalize any necessary entries for Conway Company based on the bank reconciliation.
39. Assume that the Oregon Ice Cream Company is considering the costs of two of their product lines -...
Assume that the Oregon Ice Cream Company is considering the costs of two of their product lines - ice cream sandwiches and dessert bars. The company identified the following partial list of activities, costs, and activity drivers expected for the next year.
Activity. Expected Costs. Cost Driver
Extrusion Costs $637,500 Number batches made
Packaging Costs $44,000 Number of units made
Products. Ice Cream Sandwiches Dessert Bars
Product volume 350,000 units 200,000 units
Batches made 400 batches 350 batches
Refer to the data above. How much overhead cost will be assigned to the desert bar product line using activity-based costing (ABC)?
340,750
$247,818
$16,000
$297,500
$313,500
40. Jimmie's Fishing Hole has the following transactions related to its top-selling Shimano fishing r...
Jimmie's Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June. Jimmie's Fishing Hole uses a periodic inventory system.
Using LIFO, calculate ending inventory and cost of goods sold at June 30.
Please show formulas and thought process.
