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Winter Accounting Quiz: Secure Good Grades with Expert Help
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12. Cost Accounting Chapter 3 Exercise 3-15Exercise 3-15
Plantwide vs. departmental OH rates
Roddickton Manufacturing Co. has gathered the following information to develop predetermined OH rates for 2013. The company produces a wide variety of energy-saving products that are processed through two departments, Assembly (automated) and Finishing (labor intensive).
Budgeted total overhead: $600,400 in Assembly and $199,600 in Finishing
Budgeted total direct labor hours: 10,000 in Assembly and 40,000 in Finishing
Budgeted total machine hours: 76,000 in Assembly and 4,000 in Finishing
a. Compute a plantwide predetermined OH rate using direct labor hours.
$ per DLH
b. Compute a plantwide predetermined OH rate using machine hours.
$ per MH
c. Compute departmental predetermined OH rates using machine hours for Assembly and direct labor hours for Finishing. Round your answers to the nearest cent.
Assembly $ per MH
Finishing $ per DLH
d. Determine the amount of overhead that would be assigned to a product that required five machine hours in Assembly and one direct labor hour in Finishing using the answers developed in (a), (b), and (c). Round your answers to the nearest cent.
Overhead assigned using answer from part (a) $
Overhead assigned using answer from part (b) $
Overhead assigned using answer from part (c) $
13. Carlo Company uses a predetermined overhead rate based on direct labor hours
Carlo Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhad to jobs. The company estimated manufacturing overhead at $255,000 for the year and direct labor hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totaled $265,500. Actual direct labor hours were 105,000. What was the overapplied or underapplied overhead for the year? (Points : 5) $2,250 overapplied $2,250 underapplied $15,000 overapplied $15,000 underapplied
14. Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the b...
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $396,000; materials of $410,000 and direct labor of $220,000. During the year Adams incurred $418,000 in materials costs, $413, 200 in overhead costs and $224,000 in direct labor costs. Compute the amount of under-or overapplied overhead for the year. $10,000 overapplied. $17, 200 overapplied. $10,000 underapplied. $17, 200 underapplied. $4, 800 underapplied.
15. (Objective 1-1) James Burrow is the loan officer for the National Bank of Dallas. National has a...
(Objective 1-1) James Burrow is the loan officer for the National Bank of Dallas. National has a loan of $325,000 outstanding to Regional Delivery Service, a company specializing in delivering products of all types on behalf of smaller companies. National’s collateral on the loan consists of 25 small delivery trucks with an average original cost of $24,000. Burrow is concerned about the collectibility of the outstanding loan and whether the trucks still exist. He therefore engages Samantha Altman, CPA, to count the trucks, using registration information held by Burrow. She was engaged because she spends most of her time auditing used automobile and truck dealerships and has extensive specialized knowledge about used trucks. Burrow requests that Altman issue a report stating the following:
1. Which of the 25 trucks is parked in Regional’s parking lot on the night of June 30, 2011.
2. Whether all of the trucks are owned by Regional Delivery Service.
3. The condition of each truck, using the guidelines of poor, good, and excellent.
4. The fair market value of each truck, using the current “blue book” for trucks, which states the approximate wholesale prices of all used truck models, and also using the poor, good, and excellent condition guidelines.
a. For each of the following parts of the definition of auditing, state which part of the preceding narrative fits the definition:
(1) Information
(2) Established criteria
(3) Accumulating and evaluating evidence
(4) Competent, independent person
(5) Reporting results
b. Identify the greatest difficulties Virms is likely to have doing this audit.
(Objective 1-1)
NATURE OF AUDITING
We have introduced the role of auditors in society, and how auditors’ responsibilities have increased to include reporting on the effectiveness of internal control over financial reporting for public companies. We now examine auditing more specifically using the following definition:
16. On January 1, 2018, Splash City issues $310,000 of 9% bonds, due in 20 years, with interest payab...
On January 1, 2018, Splash City issues $310,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.
Assuming the market interest rate on the issue date is 10%, the bonds will issue at $283,405.
2. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.
1. Complete the first three rows of an amortization table. Interest increase in Carrying Expense Carrying Value Value Date Cash Plaid 6/30/18 12/31/18
17. Victoria Lee Company had the following adjusted trial balance. Prepare closing entries at June 3...
Victoria Lee Company had the following adjusted trial balance. Prepare closing entries at June 30, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare a post-closing trial balance.
18. Tonga Toys manufactures and distributes a number of products to retailers. One of these products,..
Tonga Toys manufactures and distributes a number of products to retailers. One of these products, Play clay, requires five pounds of material A135 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter July, August, and September. Peak sales of Playclay occur in the third quarter of each year. To keep production and shipments moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 7,000 units plus 29% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 17,150 units. b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 for material A135 is budgeted to be 94,750 pounds. c. The company maintains no work in process inventories A sales budget for Playclay for the last six months of the year follows. Budgeted Sales n Units 35,000 July 45,000 August 65.000 September 30,000 October 15,000 November 5,000 December
19. Selected account balances from the adjusted trial balance for Olinda Corporation...
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year end December 31, 2015, follow.
Debit Credit
a. Interest revenue $ 14,000
b. Depreciation expense—Equipment. $ 34,000
c. Loss on sale of equipment 25,850
d. Accounts payable 44,000
e. Other operating expenses 106,400
f. Accumulated depreciation—Equipment 71,600
g. Gain from settlement of lawsuit 44,000
h. Accumulated depreciation—Buildings 174,500
i. Loss from operating a discontinued segment (pretax) 18,250
j. Gain on insurance recovery of tornado damage (pretax and extraordinary) 29,120
k. Net sales 998,500
l. Depreciation expense—Buildings 52,000
m. Correction of overstatement of prior year’s sales (pretax) 16,000
n. Gain on sale of discontinued segment’s assets (pretax) 34,000
o. Loss from settlement of lawsuit 23,750
p. Income taxes expense ?
q. Cost of goods sold 482,500
3. What is the total amount of after-tax income (loss) associated with the discontinued segment?
20. how can mynav green cloud advisor help an Accenture client achieve a clear emissions profile for...
how can mynav green cloud advisor help an Accenture client achieve a clear emissions profile for their data centers?
1. by allowing the client to retrieve and store the largest quantities of data possible
2. by applying a single green solution plan to all clients regardless of location or readiness
3. by using special software to e-design data centers with renewable energy sources
4. by establishing the client’s existing data center energy consumption for comparison
5. i don’t know this yet.
21. Multiple Choice 1. Which of the following items would not be classified as direct material for an...
Multiple
Choice
1. Which of the following items would notbe classified as direct material for an automobile
manufacturer?
a. Steel
b. Paint
c. tires
d. Screws
2. Which of the following items would notbe classified as direct material for Dole Food Company?
a. Pineapple
b. Sugar
c. Stainless steel pots
d. Glass jars
3. Which of the following would be classified as direct material for a
furniture manufacturer?
a. Wood
b. Glue
c. Screws
d. Wood cleaner
4. Which of the following is an example of direct labor for Dole Food
Company?
a. Truck driver who transports fruit to customers.
b. Truck driver who transports labors to field
c. Plant supervisor
d. Fruit picker
5. Which of the following is an example of direct labor for Toyota
Motor Company?
a. Assembly line worker
b. Fork-lift driver
c. Line foreman
d. Company president
6. Coffee beans at Starbucks is an example of:
Direct Material
Period Cost
a.
Yes
No
b.
Yes
Yes
c.
No
Yes
d.
No
No
7. Oil to keep the factory machinery lubricated is an example of:
Indirect
Material
Overhead
a.
Yes
No
b.
Yes
Yes
c.
No
Yes
d.
No
No
8. Wood used in the manufacturing of furniture is an example of:
Indirect Material
Period Cost
a.
Yes
No
b.
Yes
Yes
c.
No
Yes
d.
No
No
9. Fabric used in the manufacture of baseball jerseys is an example of:
Direct Material
Product Cost
a.
Yes
No
b.
Yes
Yes
c.
No
Yes
d.
No
No
10. Wages of sewing machine operators making baseball jerseys is an
example of:
Direct Labor
Period Cost
a.
Yes
No
b.
Yes
Yes
c.
No
Yes
d.
No
No
22. As the full-time bookkeeper, your job is to make any corrections to the general ledger accounts....
As the full-time bookkeeper, your job is to make any corrections to the general ledger accounts. Each correction needs the reason for the change and the effect on each account, whether it is an increase or decrease. Mesia has come to you for help. For the third time this month, she has recorded a cash receipt twice. She wants you to record a correcting entry that will reverse her mistakes. The correcting entry she wants you to make will record a credit to the Cash account and a debit to Sales. What should you investigate before making a decision about the correcting entry? What is happening to the cash account? Is this a continual problem for Mesia? Would you accept a dinner offer from Mesia if you fix her mistake?
23. EX16_XL_CH02_GRADER_CAP_AS - Gym Management 1.7 Project Description: You are a sales representati...
EX16_XL_CH02_GRADER_CAP_AS - Gym Management 1.7
Project Description:
You are a sales representative at the local fitness center, Health & Fitness Gym. Your manager expects each representative to track weekly new membership data, so you created a spreadsheet to store data. Membership costs are based on membership type. Clients can rent a locker for an additional annual fee. You are required to collect a down payment based on membership type, determine the balance, and then calculate the monthly payment based on a standard interest rate. In addition, you calculate general statistics to summarize for your manager. Spot-check results to make sure you created formulas and functions correctly.
Instructions:
For the purpose of grading the project you are required to perform the following tasks:
Step Instructions Points Possible
1 Open the downloaded file exploring_e02_grader_a1.xlsx. 0.000
2 Insert a lookup function in cell C5 to display the basic annual membership cost for the first client. 10.000
3 Insert a function in cell B2 to display the current date. 5.000
4 Use an IF function in cell E5 to calculate the annual total amount, which is the sum of the basic cost and locker fees for those who rent a locker. For people who do not rent a locker, the annual cost is only the cost shown in column C. The Locker column displays Yes for clients who rent a locker and No for those who don’t. 10.000
5 In cell G5, enter a formula to calculate the total amount due for the first client based on the annual total and the number of years in the contract. Copy the three formulas in columns C, G, and E down their respective columns. 5.000
6 Insert a lookup function in cell H5 to display the amount of down payment for the first client based on the membership type. 10.000
7 Insert a formula in cell I5 to calculate the balance due on the membership. Copy the formulas for the rest of the clients. 5.000
8 Insert the PMT function in cell J5 to calculate the first client’s monthly payment, using appropriate relative and absolute cell references. Copy the formula down the column. 15.000
9 Calculate totals for Annual Total, Total Due, Down Payment, Balance, and Monthly Payment on row 14. 10.000
10 Insert the appropriate functions in the Summary Statistics section of the worksheet: cells H18:H22. Format the payments with Accounting number format and format the number of new members appropriately. 10.000
11 Format the other column headings on rows 4 and 17 to match the fill color in the range E17:H17. Wrap text for the column headings. 10.000
12 Set 0.3'' left and right margins and ensure that the page prints on only one page. 5.000
13 Insert a footer with your name on the left side, the date code in the center, and the file name on the right side. 5.000
14 Save and close the workbook. Submit the file as directed. 0.000
Total Points 100.000
Health & Fitness Gym
Date Prepared:
Client Membership Cost Locker Annual Total Years Total Due Down Payment Balance Monthly Payment
Andrews Deluxe Yes 1
Baker Individual Yes 2
Carter Family No 3
Dudley Deluxe No 2
Evans Deluxe Yes 3
Foust Individual No 1
Gardner Individual No 2
Hart Individual No 3
Ivans Individual Yes 3
Totals
Membership Cost Down Payment Summary Statistics
Deluxe $ 575 $ 250 Number of New Members
Family $ 1,500 $ 700 Lowest Monthly Payment
Individual $ 300 $ 150 Average Monthly Payment
Maxium Monthly Payment
Locker Fee $ 75 Median Monthly Payment
Interest Rate 5.75%
Months Per Year 12
24. Skinny Dippers, Inc. produces nonfat frozen yogurt. The product is sold in five-gallon...
Skinny Dippers, Inc. produces nonfat frozen yogurt. The product is sold in five-gallon containers, which
have the following price and variable costs.
Sales price ................................................................................................................ $15
Direct material ........................................................................................................... 5
Direct labor ................................................................................................................ 2
Variable overhead ...................................................................................................... 3
Budgeted fixed overhead in 20x1, the company’s first year of operations, was $300,000. Planned and
actual production was 150,000 five-gallon containers, of which 125,000 were sold. Skinny Dippers, Inc.
incurred the following selling and administrative expenses.
Fixed ................................................................................................ $50,000 for the year
Variable ............................................................................................ $1 per container sold
¦Problem 8–21
Straightforward Problem on
Absorption versus Variable
Costing
(LO 2, 3, 4)
2(a). Net income: $200,000
3. Cost of goods sold
under absorption costing:
$1,500,000
All applicable Problems are available with McGraw-Hill’sConnect AccountingTM.
accounting
Chapter 8Absorption and Variable Costing341
Required:
1.Compute the product cost per container of frozen yogurt under (a) variable costing and
(b) absorption costing.
2.Prepare income statements for 20x1 using (a) absorption costing and (b) variable costing.
3.Reconcile the income reported under the two methods by listing the two key places where the
income statements differ.
4.Reconcile the income reported under the two methods using the shortcut method.
25. Problem 5-5 Presented below is the balance sheet of Sargent Corporation for the current year, 201...
spving this problem please!!
Problem 5-5 Presented below is the balance sheet of Sargent Corporation for the current year, 2017 LOSSOM CORPORATION BALANCE SHEET DECEMBER 31 2017 488,300 Current liabilities 383,300 Current assets Investments 643,300 Long-term liabilities 1,003,300 Property, plant, and equipment 1,723,300 Stockholders' equity 1,773,300 Intangible assets $3,159,900 305,000 $3,159,900 The following information is presented. 1. The current assets section includes cash $153,300, accounts receivable $173,300 less $13,300 for allowance for doubtful accounts, inventories $183,300, and unearned rent revenue $8,300 Inventory is stated on the market 2. The investments section includes the cash surrender value of a life insurance contract $43,300; investments in common stock, short-term (trading) $83,300 and long-term (available-for-sale) $273,300; and bond sinking fund $243,400. The cost and fair value of investments in common stock are the same 3. Property, plant, and equipment includes buildings $1,043,300 less accumulated depreciation $363,300, equipment $453,300 less accumulated depreciation $183,300, land $503,300, and land held for future use $270,000 4. Intangible assets include a franchise $168,300, goodwill $103,300, and discount on bonds payable $33,400. 5. Current liabilities include accounts payable $143,300, notes payable short-term $83,300 and long-term $123,300, and income taxes payable $33,400. 6. Long-term liabilities are composed solely of 7% bonds payable due 2025 7. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares issued 73,300 shares for $439,800, and common stock, $1.00 par value, authorized 400,000 shares issued 103,300 shares at an average price of $10. In addition, the corporation has retained earnings of $300,500. Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Bullding and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)
26. Presented below is an aging schedule for Bryan Company At December 31, 2016, the unadjusted...
Presented below is an aging schedule for Bryan Company
At December 31, 2016, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000.
Instructions
(a) Journalize and post the adjusting entry for bad debts at December 31, 2016. (Use T-accounts.)
(b) Journalize and post to the allowance account these 2017 events and transactions:
1. March 1, a $600 customer balance originating in 2016 is judged uncollectible.
2. May 1, a check for $600 is received from the customer whose account was written off as uncollectible on March 1.
(c) Journalize the adjusting entry for bad debts at December 31, 2017, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,400 and the aging schedule indicates that total estimated bad debts will be $36,700.
27. A group of 40 people wants to form a partnership firm. They want your advice regarding the maximum..
A group of 40 people wants to form a partnership firm. They want your advice regarding the maximum number of persons that can be there in a partnership firm and the name of the Act under whose provisions it is given
