Fall into Success: Expert Support for Accounting Assignments

Published: 9 months ago

Fall into Success: Expert Support for Accounting Assignments

7. The fixed manufacturing overhead costs for the entire year are as follows:

Training and development$43,200

Repairs and maintenance 39,000

Supervisors’ salaries149,400

Amortization on equipment178,800

Plant Insurance84,000

Other117,600

$ 612,000

· The annual insurance premium of $84,000 will be paid at the beginning of January. There is no change in the premium from last year.

· All other “cash-related” fixed manufacturing overhead costs are incurred evenly over the year and paid as incurred.

· ToyWorks uses the straight line method of amortization.

8. Selling and administrative expenses are known to be a mixed cost; however, there is a lot of uncertainty about the portion that is fixed. Previous year’s experience has provided the following information:

Lowest level of sales:375,000 unitsTotal Operating Expenses: $778,710

Highest level of sales:750,000 unitsTotal Operating Expenses: $1,022,460

These costs are paid in the month in which they occur. Not included in the above expenses is bad debt expense.

9. Sales are on a cash and credit basis, with 55% collected during the month of the sale, 35% the following month, and 9.5% the month thereafter.½ of 1% of sales are considered uncollectible (bad debt expense).

10.Sales in November and December 2012 are expected to be $665,000 and $760,000 respectively.Based on the above collection pattern that applies to all years, this will result in total Accounts Receivable of $401,375 at December 31, 2012.

11.During the fiscal year ended December 31, 2013, ToyWorks will be required to make monthly income tax installment payments of $1,500.Outstanding income taxes from the year ended December 31, 2012 must be paid in March 2013. Income tax expense is estimated to be 25% of net income.Income taxes for the year ended December 31, 2013, in excess of installment payments, will be paid in March, 2014.

12.ToyWorks is planning to acquire additional manufacturing equipment for $304,200 cash. 40% of this amount is to be paid in January 2013, the rest, in February 2013.The manufacturing overhead costs shown above already include the amortization on this equipment.

13.An arrangement has been made with the local bank that if ToyWorks maintains a minimum balance of $20,000 in their bank account, they will be given a line of credit at a preferred rate of 6% per annum.All borrowing is considered to happen on the first day of the month, repayments are on the last day of the month.All borrowings and repayments from the bank should be in multiples of $1,000 and interest must be paid at the end of each month. Interest is calculated on the balance at the beginning of the month, which includes any amounts borrowed that month.

14.ToyWorks Ltd. has a policy of paying dividends at the end of each quarter.The President tells you that the board of directors is planning on continuing their policy of declaring dividends of $50,000 per quarter.

15.A listing of the estimated balances in the company’s ledger accounts as of December 31, 2012 is given below:

Required:

1. Prepare a master budget for ToyWorks for the first quarter (January, February and March) of the year ending December 31, 2013, including the following schedules:

Sales Budget & Schedule of Cash Receipts

Production Budget

Direct Materials Budget & Schedule of Cash Disbursements

Direct Labour Budget

Manufacturing Overhead Budget

Ending Finished Goods Inventory Budget

Selling and Administrative Expense Budget

Cash Budget

2. Prepare a budgeted income statement for the quarter ended March 31, 2013.

3. Prepare a budgeted balance sheet at March 31, 2013.

6. On August 1, 2016, Rafael Masey established Planet Realty, which completed the follow- ing...

On August 1, 2016, Rafael Masey established Planet Realty, which completed the follow- ing  transactions  during  the   month:

a.     Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $17,500.

b.     Purchased supplies on account, $2,300.

c.     Earned sales commissions, receiving cash, $13,300.

d.     Paid rent on office and equipment for the month, $3,000.

e.     Paid creditor on account, $1,150.

f.      Paid dividends, $1,800.

g.     Paid automobile expenses (including rental charge) for month, $1,500, and miscel- laneous expenses, $400.

h.     Paid office salaries, $2,800.

i.       Determined that the cost of supplies used was $1,050.

instructions

1.     Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscella- neous Expense. Journal entry explanations may be omitted.

2.     Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance.

3.     Prepare an unadjusted trial balance as of August 31, 2016.

4.     Determine the following:

a.    Amount of total revenue recorded in the ledger.

b.    Amount of total expenses recorded in the ledger.

c.     Amount of net income for August.

5.     Determine the increase or decrease in retained earnings for August.

7. Knowledge of technical issues such as computer technology is a

Knowledge of technical issues such as computer technology is a necessary but not sufficient condition to becoming a successful management accountant. ?oDo you agree why?

8. Hahn Company uses a job order costing system. Its ide predetermined overhead rate uses direct lab...

Hahn Company uses a job order costing system. Its ide predetermined overhead rate uses direct labor-hours as the alloc base. The company pays its direct laborers $20.00 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 66,700 direct labor-hours, and Job Omega. The job cost sheets for the these two jobs are shown below: Job Alpha Direct materials Direct labor Manufacturing overhead applied 2,348,000 Total job cost Job omega 455,000 Direct materials 600,000 Direct labor 390,000 Manufacturing overhead applied 1,445,000 Total job cost. Required 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha.

9. 1. Describe what is meant by a cutoff bank statement and state its purpose. 2. Why are auditors...

1. Describe what is meant by a cutoff bank statement and state its purpose.

2. Why are auditors usually less concerned about the client’s cash receipts cutoff than the cutoff for sales? Explain the procedure involved in testing for the cutoff for cash receipts.

10. Foster Manufacturing uses a job order cost accounting system. On April 1, the company has Work in...

Foster Manufacturing uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of $7,600 and two jobs in process: Job No. 221, $3,600, and Job No. 222, $4,000. During April, a summary of source documents reveals the following Materials Requisition Labor Time or Slips Tickets Job No. 221 $1,200 $1,600 1,700 2,900 2,400 2,800 224 2,600 2,600 General use 600 400 $8,500 $9,900 Totals Foster applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 221 is completed during the month. Your answer is partially corr Try again. ect. Prepare summary journal entries to record the raw materials requisitioned, factory labor used, the assignment of manufacturing overhead to jobs, and the completion of Job No. 221. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit April 3 Work in process Inventory T t 7900 600 Manufacturing Overhead Raw Materials Inventor 8500

11. Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occu...

Managerial accounting please Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: Budgeted sales April May June Total (all on account) $360,000 $560,000 $220,000 $1,140,000 of From past experience, the company has learned that 30% of a month's sales are collected in the month sale, another 60% are collected in the month following sale, and the remaining 10% are cpllected in the second month following sale. Bad debts are negligible and can be ignored. Februarytsales totaled $290,000, and March sales totaled $320,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Schedule of Expected Cash Collections April June Total February sales March sales April sales May sales June sales Total cash collections 0 0

12. Shores Sports rents canoes and kayaks. Below is the adjusted trial balance at December 31.

Shores Sports rents canoes and kayaks. Below is the adjusted trial balance at December 31. The entry required to close the expense accounts at the end of the period includes a: a. a credit to Income Summary for $35, 520 b. a debit to Income Summary for $33, 520 c. a debit to Income Summary for $35, 520 d. a credit to Income Summary for $33.520

13. Activity 4: STRESS SURVIVAL KIT 1. Choose 3 objects or symbols that make you feel relaxed to include

Activity 4: STRESS SURVIVAL KIT 1. Choose 3 objects or symbols that make you feel relaxed to include in Ramesh Oil Mills, Bombay, consigned 40,000 kg of castor oil in 10 kg tins to B N Chatterjee,...

Ramesh Oil Mills, Bombay, consigned 40,000 kg of castor oil in 10 kg tins to B N Chatterjee, Calcutta, on 1st April, 2017. The cost of oil was Rs. 2 per kg. The consignors paid ~ 10,000 as freight and insurance. During transit 50 tins were totally destroyed for which the insurance company paid directly to the consignor, Rs. 900 in full settlement of

the claim. B N Chatterjee took delivery of the consignment on 10th April, and accepted a bill drawn on him by the Ramesh Oil Mills for Rs.20,000 for three months. On June 30, 2017 B N Chatterjee reported that 35,000 kg were sold @ Rs. 3 per kg. The expenses were as follows: Godown rent Rs. 400; advertisement Rs. 2,000; and salaries of salesmen Rs. 4,000. B N Chatterjee charged a commission of 3% plus 3% del credere commission. He sold Rs. 19,000 worth of oil, the remaining stock, to X & Co who were declared bankrupt after two months and only 50 paise per rupee were realized from them. Show accounts in the books of both the parties assuming that the consignee paid the amount due by bank draft.

14. Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the qu...

Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at an $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. The company predicts the machine will be used for six years and have a $23,040 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of. References Section BreakProblem 10-6A Disposal of plant assets LO C1, P1, P2 5.value: 1.11 pointsRequired information Problem 10-6A Part 1 Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred. rev: 01_02_2014_QC_43145 References WorksheetDifficulty: MediumLearning Objective: 10-P1 Compute and record depreciation using the straight-line, units-of-production, and declining-balance methods. Problem 10-6A Part 1Learning Objective: 10-C1 Explain the cost principle for computing the cost of plant assets.Learning Objective: 10-P2 Account for asset disposal through discarding or selling an asset. Check my work 6.value: 1.11 pointsRequired information Problem 10-6A Part 2 2. Prepare journal entries to record depreciation of the machine at December 31. (a) Its first year in operations. (b) The year of its disposal. References WorksheetDifficulty: MediumLearning Objective: 10-P1 Compute and record depreciation using the straight-line, units-of-production, and declining-balance methods. Problem 10-6A Part 2Learning Objective: 10-C1 Explain the cost principle for computing the cost of plant assets.Learning Objective: 10-P2 Account for asset disposal through discarding or selling an asset. Check my work 7.value: 1.11 pointsRequired information Problem 10-6A Part 3 3. Prepare journal entries to record the machine's disposal under each of the following separate assumptions: (a) It is sold for $25,000 cash. (b) It is sold for $100,000 cash. (c) It is destroyed in a fire and the insurance company pays $35,500 cash to settle the loss claim. References WorksheetDifficulty: MediumLearning Objective: 10-P1 Compute and record depreciation using the straight-line, units-of-production, and declining-balance methods. Problem 10-6A Part 3Learning Objective: 10-C1 Explain the cost principle for computing the cost of plant assets.Learning Objective: 10-P2 Account for asset disposal through discarding or selling an asset. Check my work ©2017 McGraw-Hill Education. All rights reserved.

15. EXERCISE 5–16 Overhead Application [LO3, LO5] Sportway Inc. produces high-quality tennis racquets...

EXERCISE 5–16 Overhead Application [LO3, LO5]

Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below:

In addition, the firm budgets manufacturing overhead at $52,000 in the Forming Department and $45,000 in the Finishing Department.

Required:

1.              Determine the overhead application rate for each department.

2.              Determine the total cost per unit of tennis racquets and golf clubs.

16. Byrd Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that...

Byrd Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $400,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,800.

(a) Prepare the adjusting journal entry to record bad debt expense for the year.

(b) If the allowance for doubtful accounts had a debit balance of $900 instead of a credit balance of $2,800, prepare the adjusting journal entry for bad debt expense.

17. 1. Define Lawn Care’s current strategic mission, strategy, competitive priorities, value chain, and.

1. Define Lawn Care’s current strategic mission, strategy, competitive priorities, value chain, and how it wins customers. What are the order qualifiers and winners? Draw the major stages in their value chain without an application service. 2. What problems, if any, do you see with The Lawn Care Company s current strategy, vision, customer benefit package design, and pre- and post-services? 3. Redo questions (1) to (2) and provide a new or revised strategy and associated customer benefit package and value chain that is more appropriate for today’s marketplace. 4. What does operations have to be good at to successfully execute your revised strategy? 5. What are your final recommendations?

18. If Kroger had Whole Foods’ number of days’ sales in inventory, how much additional cash flow...

If Kroger had Whole Foods’ number of days’ sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? Round interim calculations to one decimal place and your final answer to the nearest million.