38. At the end of May, Bergan Company had completed Jobs 200 and 305. Job 200 is for 2,390 units, and...
At the end of May, Bergan Company had completed Jobs 200 and 305. Job 200 is for 2,390 units, and Job 305 is for 2,053 units.
The following data relate to these two jobs:
On May 7, Bergan Company purchased on account 10,000 units of raw materials at $8 per unit. During May, raw materials were requisitioned for production as follows: 7,500 units for Job 200 at $8 per unit and 1,480 units for Job 305 at $5 per unit.
During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. The total direct labor was incurred at a rate of $28 per direct labor hour for Job 200 and $24 per direct labor hour for Job 305.
Bergan Company estimates that total factory overhead costs will be $620,000 for the year. Direct labor hours are estimated to be 80,000.
a. Determine the balance on the job cost sheets for Jobs 200 and 305 at the end of May.
Job 200 $
Job 305 $
b. Determine the cost per unit for Jobs 200 and 305 at the end of May. If required, round your answers to two decimal places.
Job 200 $
Job 305 $
39. 41.The recording of the jobs shipped and customers billed would include a debit to: a.Accounts...
41.The recording of the jobs shipped and customers billed would include a debit to:
a.Accounts Payable
b.Cash
c.Finished Goods
d.Cost of Goods Sold
42.The recording of the jobs shipped and customers billed would include a credit to:
a.Accounts Payable
b.Cash
c.Finished Goods
d.Cost of Goods Sold
43.The finished goods account is the controlling account for the:
a.cost ledger
b.materials ledger
c.work in process ledger
d.stock ledger
44.The controlling account for the cost ledger is:
a.Finished Goods
b.Materials
c.Work in Process
d.Cost of Goods Sold
45.Putnam Manufacturers Inc. has estimated total factory overhead costs of $84,000 and 12,000 direct labor hours for the current fiscal year. If job number 117 incurred 1,500 direct labor hours,the work in process account will be debited and factory overhead will be credited for:
a.$10,500
b.$0; WIP is credited
c.$84,000
d.$1,500
46.A widely used activity base for developing factory overhead rates in highly automated settings is:
a.direct labor hours
b.direct labor dollars
c.direct materials
d.machine hours
47.When job 711 was completed, direct materials totaled $4,000; direct labor, $4,600; and factory overhead, $2,400, respectively. Units produced totaled 1,000. Unit costs are:
a.$11,000
b.$1,100
c.$110
d.$11
48.The correct entry for each sale of a finished good on account is:
a.debit Cost of Goods Sold, credit Finished Goods
b.debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales
c.debit Sales Expense, credit Finished Goods, credit Cash, credit Accounts Receivable
d.debit Work in Process, credit Finished Goods, debit Accounts Receivable, credit Sales
49.All of the following are examples of activity bases except:
a.salaries of supervisors
b.quality inspections of products
c.number of machine setups
d.raw materials storage
50.Materials purchased on account during the month amounted to $195,000. Materials requisitioned and placed in production totaled $168,000. From the following, select the entry to record the transaction on the day the materials were bought.
a.Materials168,000
Accounts Payable168,000
b.Materials195,000
Accounts Payable195,000
c.Materials195,000
Cash 195,000
d.Accounts Payable195,000
Materials195,000
40. Webber, Inc. developed the following information for its product: Per Unit Sales price $90 Variable
Webber, Inc. developed the following information for its product:
Per Unit
Sales price $90
Variable cost 63
Contribution margin $27
Total fixed costs $1,080,000
Answer the following independent questions.
How many units must be sold to break even?
Number of units to be sold
What is the total sales that must be generated for the company to earn a profit of $60,000?
Total sales $
If the company is presently selling 45,000 units, but plans to spend an additional $108,000 on an advertising program, how many additional units must the company sell to earn the same net income it is now making?
Additional units
Using the original data in the problem, compute a new break-even point in units if the unit sales price is increased 20%, unit variable cost is increased by 10%, and total fixed costs are increased by $210,000. (Round down your answer to whole unit, e.g. 15,000.)
New break-even point
41. Instructions Payroll Register and Payroll Entry General Journal Instructions ayroll Register and ...
Instructions and questions as follows. Instructions Payroll Register and Payroll Entry General Journal Instructions ayroll Register and Payroll Journal Entry ? Prepare a payroll register for Mary's Luxury Travel for the week ended March 22, 20 in the Taxable Earnings Unemployment Co pensation column enter the same amounts as in the Social Security column.) Total the amount columns. Round your answers to the nearest cent. 2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank. ary Losch operates a travel agency called Mary's Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a ayroll register, individual employee earnings records, and a general journal. Mary's Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8.4 in the text. The payroll data for each employee for the week ended March 22, 20-, are given below. Employees are paid 1'% times the regular rate for working over 40 hours a week Total Earnings Name Allowances Status Worked Mar. 16-22 Rate Jan. 1-Mar. 15 $5.520 5,740 4,940 5, 122.5 No. of MaritalTotal Hours Bacon, Andrea Cole, Andrew Hicks, Melvin Leung, Cara 46 40 45 35 $12 12 10.5
42. Riveredge Manufacturing Company realized too late that it had ma
Riveredge Manufacturing Company realized too late that it had made a mistake locating its controller’s office and its electronic data processing system in the basement. Because of the spring thaw, the Mississippi River overflowed its banks on May 2 and flooded the company’s basement. Electronic data storage was destroyed, and the company had not provided off -site storage of data. Some of the paper printouts were located but were badly faded and only partially legible. On May 3, when the flooding subsided, company accountants were able to assemble the following factory-related data from the debris and from discussions with various knowledgeable personnel. Data about the following accounts were found:
?c Raw Material (includes indirect material) Inventory: Balance April 1 was $9,600.
?c Work in Process Inventory: Balance April 1 was $15,400.
?c Finished Goods Inventory: Balance April 30 was $13,200.
?c Total company payroll cost for April was $58,400.
?c Accounts payable balance April 30 was $36,000.
?c Indirect material used in April cost $11,600.
?c Other nonmaterial and nonlabor overhead items for April totaled $5,000.
Payroll records, kept at an across-town service center that processes the company’s payroll, showed that April’s direct labor amounted to $36,400 and represented 8,800 labor hours. Indirect factory labor amounted to $10,800 in April.
The president’s office had a file copy of the production budget for the current year. It revealed that the predetermined overhead application rate is based on planned annual direct labor hours of 100,800 and expected factory overhead of $302,400.
Discussion with the factory superintendent indicated that only two jobs remained unfinished on April 30. Fortunately, the superintendent also had copies of the job cost sheets that showed a combined total of $4,800 of direct material and $9,000 of direct labor. The direct labor hours on these jobs totaled 2,144. Both of these jobs had been started during April.
A badly faded copy of April’s Cost of Goods Manufactured and Sold Schedule showed cost of goods manufactured was $96,000, and the April 1 Finished Goods Inventory was $16,800.
The treasurer’s office files copies of paid invoices chronologically. All invoices are for raw material purchased on account. Examination of these files revealed that unpaid invoices on April 1 amounted to $12,200; $56,000 of purchases had been made during April; and $36,000 of unpaid invoices existed on April 30.
a. Calculate the cost of direct material used in April.
b. Calculate the cost of raw material issued in April.
c. Calculate the April 30 balance of Raw Material Inventory.
d. Determine the amount of underapplied or overapplied overhead for April.
e. What is the Cost of Goods Sold for April?
43. Read the the Platinum Pointe Land Deal case starting on page 98 of the textbook. Answer the follo...
Read the the Platinum Pointe Land Deal case starting on page 98 of the textbook. Answer the following questions. Be sure to write a complete enough answer. These assignments are short essay answers and not short answers. Evaluate Robinson Brothers Homes’ land acquisition process. What suggestions do you have for improving it, if any? If Harry Hepburn adds “a little optimism” to his projections, is he acting unethically?
44. Pardon Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes...
Pardon Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Pardon is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be allocated to each product line. The information show below relates to overhead. The total estimated manufacturing overhead was S276,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.) The total estimated manufacturing overhead of $276,000 was comprised of $163,000 for materials handling costs and $113,000 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, e.g. 12.25.) What amount of materials handling costs are assigned to: The total estimated manufacturing overhead of S276,000 was comprised of $163,000 for materials handling costs and $113,000 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, e.g. 12.25.) What amount of purchasing activity costs are assigned to: Compare the amount of overhead allocated to one mobile safe and to one walk-in safe under the traditional costing approach versus under ABC. (Round answers to 2 decimal places, e.g. 12.25.)
45. Use the Dynamic Exhibit to answer the following. 1.)When the number of units sold on November 21 ...
Use the Dynamic Exhibit to answer the following.
1.)When the number of units sold on November 21 is 36, the cost of merchandise sold on November 21 is?
2.) When the number of units sold on November 21 is 36, the ending inventory on November 21 is?
3.) When the number of units sold on November 21 is 8, the cost of merchandise sold on November 21 is?
4.) When the number of units sold on November 21 is 50, the ending inventory on November 21 is?
46. 6.11 A statistical analysis of 1,000 long-distance telephone calls made from the headquarters of the
6.11 A statistical analysis of 1,000 long-distance telephone calls made from the headquarters of the Bricks and Clicks Computer Corporation indicates that the length of these calls is normally distributed, with seconds and seconds. a. What is the probability that a call lasted less than 180 seconds? b. What is the probability that a call lasted between 180 and 300 seconds? c. What is the probability that a call lasted between 110 and 180 seconds? d. 1% of all calls will last less than how many seconds? 6.12 In 2008, the per capita consumption of coffee in Sweden was reported to be 8.2 kg, or 18.04 pounds (data extracted from en.wikipedia.org/wiki/List_of_countries_ by_coffee_consumption_per_capita). Assume that the per capita consumption of coffee in Sweden is approximately distributed as a normal random variable, with a mean of 18.04 pounds and a standard deviation of 5 pounds. a. What is the probability that someone in Sweden consumed more than 10 pounds of coffee in 2008? b. What is the probability that someone in Sweden consumed between 3 and 5 pounds of coffee in 2008? c. What is the probability that someone in Sweden consumed less than 5 pounds of coffee in 2008? d. 99% of the people in Sweden consumed less than how many pounds of coffee?
47. Nicholson Roofing? Materials, Inc., is considering two mutually exclusive? projects, each with an...
Nicholson Roofing? Materials, Inc., is considering two mutually exclusive? projects, each with an initial investment of ?$140,000. The? company's board of directors has set a? 4-year payback requirement and has set its cost of capital at 7%. The cash inflows associated with the two projects are shown in the following? table: Cash inflows ?(CFt?) Year Project A Project B 1 ?$40,000 $75,000 2 $40,000 ?$70,000 3 $40,000 $20,000 4 ?$40,000 ?$20,000 5 ? $40,000 ?$20,000 6 ?$40,000 ?$20,000 a. Calculate the payback period for each project. Rank the projects by payback period. b. Calculate the NPV of each project. Rank the project by NPV. c. Calculate the IRR of each project. Rank the project by IRR. d. Make a recommendation.
48. 91.A primary characteristic of a performance management system is a.consistency at all levels in the
91.A primary characteristic of a performance management system is
a.consistency at all levels in the organization.
b.adaptability to differing situations in the organization.
c.efficiency of application to all individuals in the organization.
d.flexibility to delay rewards although performance objectives have been met.
92.Which of the following would not normally affect the compensation strategy of a firm?
a.organizational goals
b.location of firm
c.competition
d.number of subsidiaries
93.Managers should be paid
a.on a periodic basis.
b.based on results achieved.
c.using ESOPs.
d.on a piece rate basis.
94.Financial incentives are
a.different from monetary rewards
b.the same thing as a salary element
c.provided to all employee groups.
d.available to top management whose performance exceeds targeted objectives
95.Which of the following steps in the performance reward plan model comes before the others listed?
a.set performance rewards
b.identify performance measures
c.determine reward
d.identify critical success factors
96.Objectives for a pay plan
a.are not needed in a performance-based plan.
b.must be stated for a performance-based plan to work.
c.are essential for a periodic compensation plan to be successful.
d.are unnecessary for a merit pay plan.
97.Merit pay is
a.a contingent amount of pay that is earned by managers whose subunits meet a target rate of return.
b.always for a limited period of time and must be re-earned each period.
c.any pay earned when the company is profitable.
d.a pay increment received when a specific performance level is achieved.
98.Contingent pay
a.is always paid in stock options.
b.is the sole source of pay an employee receives from his/her employer.
c.is received in addition to the basic wage and is dependent upon performance exceeding so
me performance objective.
d.can only apply to individual performance.
99.Piece rate pay
a.is a suitable pay plan for low-IQ workers.
b.involves a salary plus pay for each unit produced or carried out.
c.encourages quality output.
d.does not encourage workers to look at the company's well being.
100.Which of the following pay plans encourages the improvement of the overall company's well-being?
a.monthly salary
b.cafeteria plan
c.profit sharing
d.pensions
49. Which of the following is not a characteristic of a conditional promise to give? a It depends on the
Which of the following is not a characteristic of a conditional promise to give?
a It depends on the occurrence of a specified future and uncertain event to bind the promisor.
b The gift may have to be returned to the donor if the condition is not met.
c It is recognized as contribution revenue when the conditions are substantially met.
d It depends on demand by the promisee for performance.
50. Which of the following processes occurs during the Calvin cycle?
Which of the following processes occurs during the Calvin cycle?