Answer:
the numbers are missing, so i looked for a similar question to fill in the blanks:
Trade Mart has recently had lackluster sales. The rate of inventory turnover has? dropped, and the merchandise is gathering dust. At the same time, competition has forced Trade Mart's suppliers to lower the prices that Trade Mart will pay when it replaces its inventory. It is now December 31, 2016, and the current replacement cost Trade Mart's ending inventory is $75,000 below what Trade Mart actually paid for the goods, which was $200,000.
Before any adjustments at the end of the? period, the Cost of Goods Sold account has a balance of $$820,000.
a. What accounting action should take in this situation?
lower-of-cost-or-market rule to account for inventories.the adjustment entry should be:
Dr Cost of goods sold 75,000
Cr Inventory 75,000
b. The net realizable value of ending inventory is?
equal to actual cost, so must write down inventory to match net realizable valueEnding inventory = $200,000 - $75,000 = $125,000
Making Podcasts and Wikis Work for BusinessPodcasts and wikis are part of Web 2.0, which allows users of the web to create content. Prudent business use of Web 2.0 applications can help businesses build and maintain their reputations online. Understanding how to use Web 2.0 communication tools will be important when you are on the job.Businesses have embraced podcasting to broadcast (confidential/ legal/ repetitive?) information that doesn’t require interaction. For example, some companies use podcasts to broadcast HR policies that can be accessed on demand. What function can companies improve by using wikis for collaboration?A. Communication with investors.B. Project management.
C. Customer interaction.
Consider the scenario:You work on the marketing team for a software development company. You have sales representatives in different locations around the globe. When a product update is released, your team holds teleconferences to demo new features. Due to time differences, these demos are difficult to schedule and usually require multiple demo sessions to accommodate different geographic regions. You want to streamline the new product demos and decide to recommend an electronic communication tool to help facilitate this. Which electronic communication tool would you recommend?A. A podcast.B. A wiki.C. An e-mail.
Answer:
(a) Businesses have adopted podcasting to communicate static material that doesn't need contact.
(b) Project management.
(c) A podcast
A further explanation is given below.
Explanation:
(a)
Podcasts should never be used to exchange legal or sensitive information because certain persons even within the company should readily determine it.(b)
Wikis could also be used for a fully customizable ecosystem which would be appropriate again for software engineering, as it means helping to work collaboratively, facilitate constructive criticism, as well as a supermarket recommendation for various use.(c)
Many persons may use podcasts throughout the current time, which does never demand conversation, it may be used to supplement the expensive conversation methods used. Emails as well as wiki shouldn't be used throughout this circumstance because that necessitates visuals among others to have been used.A common step in the testing for accounts payable is to test subsequent disbursements for improper/proper inclusion/exclusion in year-end accounts payable CONCEPT REVIEW A common way to test accounts payable is to examine the check register after period end and make selections for testing. Items are selected and then examined for detail. A determination is then made to conclude whether the amount should have been a liability as of year-end and, if so, if it was recorded as such
1. When searching for unrecorded liabilities, the auditors consider transactions recorded__________year end.
2. Accounts payable __________can be mailed to vendors from whom substantial purchases have been made.
3. To gain overall assurance as to the reasonableness of accounts payable, the auditor may consider _________.
4. When auditors find unrecorded liabilities, before adjusting they must consider __________.
5 Auditiors need to consider_______ terms for determining ownership and whether a liability should be recorded.
Answer:
1. When searching for unrecorded liabilities, the auditors consider transactions recorded after year end.
Auditors consider transactions recorded after year end to determine if it was supposed to be recorded in the current period.
2. Accounts payable confirmation can be mailed to vendors from whom substantial purchases have been made.
As a way to keep a document trail, creditors from whom substantial goods were bought from can be mailed a confirmation.
3. To gain overall assurance as to the reasonableness of accounts payable, the auditor may consider ratios.
Ratios such as the Payables turnover can be used to evaluate the reasonableness of Accounts payable.
4. When auditors find unrecorded liabilities, before adjusting they must consider materiality.
They must consider if the adjustment is material or significant enough to record.
5 Auditiors need to consider shipping terms terms for determining ownership and whether a liability should be recorded.
Shipping terms need to be considered because they can tell who owns goods in transit and therefore if a liability is needed for them. Shipping terms such as FOB Shipping point mean that the business incurs the liability as soon as the seller ships the goods.
Which of the following is not a true statement about filing bankruptcy? a. Bankruptcy erases all of your debt. b. It is possible to rebuild your credit after filing bankruptcy. There are exemptions that alloW you to keep essentials. d. Bankruptcy stops aggressive action by creditors
The statement that is not true about bankruptcy is that Bankruptcy erases all of your debt. Option A is correct.
What is bankruptcy?Bankruptcy is a legal process or procedure that involves a person or business that is unable to repay its outstanding debts.
The bankruptcy methodology starts with a requisition or petition that is pointed by the debtor, which is most expected, or on behalf of creditors, and which is less common.
After filing bankruptcy, it is possible to rebuild credit after filing bankruptcy of a debtor, and there are certain waivers that allow maintaining the requirements.
Bankruptcy prevents assertive action by creditors, and it does not mean that it erases all of your debt.
Therefore, option A is correct.
Learn more about bankruptcy, refer to:
https://brainly.com/question/1142634
Answer:
A
Explanation:
Which of the following is not a true statement about filing bankruptcy?
a.
Bankruptcy erases all of your debt.
b.
It is possible to rebuild your credit after filing bankruptcy.
c.
There are exemptions that allow you to keep essentials.
d.
Bankruptcy stops aggressive action by creditors.
A
Describe the steps in the process of human resource planning. Explain the relationships between the steps.
Explanation:
The human resources planning process is the set of strategic actions that a company will develop to use organizational human capital in an improved and effective way, that is, they are the necessary actions for attracting and retaining qualified and motivated employees to assist employees. organizational goals and objectives.
There are four main stages of HR planning, they are:
1. Analysis of the offer:
In the first stage, the company's human capital and characteristics are analyzed, that is, everything that concerns the company's workers, how many employees, what position they occupy, what benefits the company offers, etc.
2. Demand forecast:
At this stage, an analysis is made of how the company will deal with the future needs of its employees, such as promotions, layoffs, etc.
After the first stage of identifying the workforce, the HR area needs to deal with the future of human capital in the company, as people will have growth needs in the company and others.
3. Balance supply and demand:
In the third stage, HR seeks to analyze how the company's future demands seen in the second stage will influence the needs of the positions in the organization. Like the possibility of hiring more managers, the need to develop training and development programs, etc.
4. implementation:
Each previous stage of human resource planning will lead the department to identify best practices in this fourth and final stage of HR planning.
In this phase, policies, measures and actions necessary to implement the HR plan are developed so that the company can manage its human capital in the best possible way for its success, protecting the rights and duties of employees supported by development, training actions and solving your needs.
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 36,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $82,100 consisted of $58,000 of direct materials costs and $24,100 of conversion costs.
During the month, the forming department started 520,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 35% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department is as follows:
Beginning work in process inventory $82,100
Direct materials added during the month 1,942,930
Conversion added during the month 1,359,730
1A. Calculate the equivalent units of production for the forming department.
1B. Calculate the costs per equivalent unit of production for the forming department.
1C. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.
Answer:
Please see attached detailed solution
Explanation:
1a. Direct material 550,000
Conversion 530,000
1b. Direct materials $3.64 per EUP
Conversion $2.61 per EUP
1c. Costs assigned to the forming department's output
• Total cost of ending work in process $160,300
• Total costs assigned $3,384,760
Please see attached detailed solution to the above questions and answers.
Cost of Goods Sold and Income Statement Schuch Company presents you with the following account balances taken from its December 31 adjusted trial balance:
Inventory, January 1 $40,000 Purchases returns $3,500
Selling expenses 35,000 Interest expense 4,000
Purchases 110,000 Sales discounts taken 2,000
Sales 280,000 Gain on sale of property (pretax) 7,000
General and administrative expenses 22,000 Freight-in 5,000
Additional data:
1. A physical count reveals an ending-inventory of $22,500 on December 31.
2. Twenty-five thousand shares of common stock have been outstanding the entire year.
3. The income tax rate is 30% on all items of income.
Required:
a. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Schuch's cost of goods sold.
b. Prepare a 2013 multiple-step income statement.
c. Prepare a 2013 single-step income statement.
Answer:
Schuch Company
a) Schedule of Cost of Goods Sold
Inventory, January 1 $40,000
Purchases 110,000
Purchases returns -3,500
Freight-in 5,000
Cost of goods available for sale $151,500
less Inventory, December 31 22,500
Cost of goods sold $129,000
b) Multi-step Income Statement
For the year ended December 31, 2013:
Net Sales Revenue $278,000
Cost of Goods Sold 129,000
Gross profit $149,000
Expenses:
Selling expenses 35,000
General & admin exp. 22,000 57,000
Operating profit $92,000
Interest expense 4,000
Income after interest expense $88,000
Gain on sale of property (pretax) 7,000
Comprehensive income before tax $95,000
Income Tax (30%) 28,500
Net income $66,500
EPS = $2.66
c) Single-step Income Statement
For the year ended December 31, 2013:
Net Sales Revenue $278,000
Gain on sale of property (pretax) 7,000
Total revenue and gains $285,000
Cost of Goods Sold 129,000
Selling expenses 35,000
General & admin exp. 22,000
Interest expense 4,000
Total expenses $190,000
Income before taxes $95,000
Income Taxes (30%) 28,500
Net income $66,500
EPS = $2.66
Explanation:
a) Data and Calculations:
December 31 adjusted trial balance:
Inventory, January 1 $40,000
Purchases returns $3,500
Selling expenses 35,000
Interest expense 4,000
Purchases 110,000
Sales discounts taken 2,000
Sales 280,000
Gain on sale of property (pretax) 7,000
General and administrative expenses 22,000
Freight-in 5,000
Additional data:
Ending Inventory $22,500
Common Stock outstanding = 25,000
Income tax rate = 30%
Sales $ 280,000
Sales discounts taken 2,000
Net Sales Revenue $278,000
Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement?
a. In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.
Nell's basis for the stock is _______$ X
Kirby's basis in the house is ______$ X
b. Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.
The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.
c. Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.
$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered(child support, property settlement) and is (nontaxable, taxable) to Nell.
Answer:
Explanation:
CHECK THE COMPLETE QUESTION BELOW;
The transfers of the stock and residence pursuant to the divorce are nontaxable to Nell
and Kirby. Nell assumes Kirby's basis in the stock of $150,000, and Kirby's basis in the house is $300,000. However, the $50,000 cash paid by Kirby will be alimony
unless the agreement specifies that the payment is "not alimony."
Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement?
A) In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.
a) The transfer of the property is a _____event.
b) Nell's basis for the stock is $
c) Kirby's basis in the house is $
B). Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.
The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.
C) Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.
$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered(child support, property settlement) and is (nontaxable, taxable) to Nell.
ANSWER AND EXPLANATION:
A). In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.
ANSWER:
a) The transfer of the property is a __non negotiatiable___event.
b) Nell's basis for the stock is $150,000
c) Kirby's basis in the house is $300,000
Hints;
✓ From the question, it was stated at the onset of their agreement that ""Nell and Kirby are in the process of negotiating their divorce agreement". Hence it is a non negotiatiable event.
✓ from the question as well, Nell assumes ""Kirby's basis in the stock of $150,000, and Kirby's basis in
the house is $300,000." Hence, the basis for Nell and Kirby are $150,000 and $300,000 respectively.
B). Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.
The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.
ANSWER: The payments "Do NOT QUALIFY""as alimony and are "EXCLUDED FROM""Nell's gross income as they are received.
HINTS: As the payment is been received, it cannot be recorded as the Nell's gross profit ,and cannot be counted as alimony, reason behind this is that even if Nell should die,the payment continues.
Note that, alimony can be regarded as the payment that are to be paid from one of the couple to the other after divorce as part of finance support, usually ordered by court of law.
C). Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.
$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered(child support, property settlement) and is (nontaxable, taxable) to Nell.
ANSWER: "$300 per month" is alimony that is" INCLUDED IN"" Nell's gross income, and the remaining $900 per month is considered "CHILD SUPPORT"child and is "NON TAXABLE to Nell.
HINTS:it was stated that Nell should receive $1200 monthly for Bobby's child support as well as alimony, out of this $900 goes for child support and $300 for alimony, provided that all the stated Condition stated in the question is followed duely.
The following are a trial balance and several transactions that relate to Lewisville's Concert Hall Bond Fund:
Lewisville Debt Service Fund Concert Hall Bond Fund Trial Balance July 1, 2012
Cash $60,000
Investments 40,000
Restricted fund balance $100,000
$100,000 $100,000
The following transactions took place between July 1, 2012, and June 30, 2013:
1. The city council of Lewisville adopted the budget for the Concert Hall Bond Fund for the fiscal year. The estimated revenues totaled $100,000, the estimated other financing sources totaled $50,000, and the appropriations totaled $125,000.
2. The General Fund transferred $50,000 to the fund.
3. To provide additional resources to service the bond issue, a property tax was levied upon the citizens. The total levy was $100,000, of which $95,000 was expected to be collected.
4. Property taxes of $60,000 were collected.
5. Revenue received in cash from the investments totaled $1,000.
6. Property taxes of $30,000 were collected.
7. The fund liability of $37,500 for interest was recorded, and that amount of cash was transferred to the fiscal agent.
8. A fee of $500 was paid to the fiscal agent.
9. Investment revenue totaling $1,000 was received in cash.
10. The fund liabilities for interest in the amount of $37,500 and principal in the amount of $50,000 were recorded, and cash for the total amount was transferred to the fiscal agent.
11. Investment revenue of S500 was accrued. Use the preceding information to do the following:
a. Prepare all the journal entries necessary to record the preceding transactions for the Concert Hall Bond Fund.
b. Prepare a trial balance for the Concert Hall Bond Fund as of June 30, 2013.
c. Prepare a statement of revenues, expenditures, and changes in fund balance and a balance sheet for the Concert Hall Bond Fund (assume all fund balance is restricted).
d. Prepare closing entries for the Concert Hall Bond Fund
Answer:
a. Journal entries
1. Estimated revenues (Dr.) $100,000
Estimated other financing sources (Dr.) $50,000
Appropriations (Cr.) $125,000
Fund Balance Budget (Cr.) $25,000
2. Cash (Dr.) $50,000
General Fund Transfer (Cr.) $50,000
3. Property Tax receivable (Dr.) $100,000
Uncollectable Taxes (Cr.) $5,000
Collectable Property taxes revenue (Cr.) $95,000
4. Cash (Dr.) $60,000
Collectable property tax revenue (Cr.) $60,000
5. Cash (Dr.) $1,000
Revenue From Investments (Cr.) $1,000
6. Cash (Dr.) $30,000
Collectable property tax revenue (Cr.) $30,000
7. Interest expense (Dr.) $37,500
Interest Payable (Cr.) $37,500
8. Fiscal Agent fee (Dr.) $500
Cash (Cr.) $500
9. Cash (Dr.) $1,000
Investment Revenue (Cr.) $1,000
10. Interest Expense (Dr.) $37,500
Principal payment (Dr.) $50,000
[Fiscal Agent] Cash (Cr.) $87,500
11. Investment Revenue Receivable (Dr.) $500
Investment Revenue (Cr.) $500
Explanation:
b. Trial Balance
Particulars : Debit (Dr.) $ ; Credit (Cr.) $
Cash: 76,500 ; 0
Property Taxes receivable 10,000 ; 0
Allowance for uncollectable property 0 ; 5,000
Investments 40,000 ; 0
Investment revenue receivable 500 ; 0
Restricted fund balance 0 ; 100,000
Revenue - property taxes 0 ; 95,000
Revenue- Investments 0 ; 2,500
Transfer to general fund 0 ; 50,000
Interest Expense 75,000 ; 0
Bond principal 50,000 ; 0
Fiscal agent fees 500 ; 0
Estimated revenues 100,000 ; 0
Estimated other financing sources 50,000 ; 0
Appropriations 0 ; 125,000
Fund balance Budget 0 ; 25,000
The opportunity cost of making a component part in a factory with no excess capacity is the: (CMA adapted)
Answer:
Answer Choices
The opportunity cost of making a component part in a factory with no excess capacity is the
(A) Variable manufacturing cost of the component.
(B) Fixed manufacturing cost of the component.
(C) Cost of the production given up in order to manufacture the component.
(D) Net benefit given up from the best alternative use of the capacity.
Answer is D
Net benefit given up from the best alternative use of the capacity.
Explanation:
When we talk about opportunity cost, we simply look at the potential benefits a business, investor or person could miss when selecting a particular alternative over another. This is a major concept in economics.
If one is not careful, opportunity costs can be readily overlooked and when one tries to understand the missed opportunities in choosing one option over another, that individual would be able to make better decisions.
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $750,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 5% interest rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
200,000
Explanation:
A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
Cash flow from operating activities
Net Income 5,000,000
Less Depreciation (450,000)
Cashflow from operations 5,450,000
Cash flow from investing activities
Purchase of Fixed assets 5,400,,000
Cash flow from investing activities
Issue of long term debt 1,000,000
Dividend paid (750,000)
Cash generated from investing activities 250,000
Change in cash 300,000
Beginning balance 100,000
Closing balance 200,000
Cramer Corporation formats operating cash flows using the indirect method. E:How do accounts receivable affect Cramer's cash flows from operating activities for 2018?
A. They increase cash provided by operating activities,
B. They don't because accounts receivable result from investing activities
C. They don't because accounts receivable result from financing activities.
D. They decrease cash provided by operating activities
Cramer's Income Statement for 2018
Sales revenue 170,000
Gain on sale of equipment 10,000 180.000
Cost of goods sold 110000
Depreciation 7500
Other operating expenses 27000 144500
Nel income 35500
The book value of equipment sold during 2018 was $22.000. 110,000 7.500 27.000 Done kerating activities for 2018? 1 Data Table Cash Accounts receivable
Cramer's Comparative Balance Sheets
December 31, 2018 and 2017
2018 2017
Cash 3,500 $ 2,000
Accounts payable 6,000 11,000
Accrued liabilities 8,000 7,000
Common stock 89,000 71,000
Retained earnings $ 106,500 $ 91,000
2018 2017
Accounts payable 7,000 $ 8,000
Accounts liabilities 9,000 1,000
Common stock 20,000 10000
Retained earnings 70500 72000
106,500 91,000
Answer: A. They increase cash provided by operating activities,
Explanation:
There is an error in the question. The Accounts Receivable are listed as Accounts Payable. Accounts receivable figures are $6,000 for 2018 and $11,000 for 2017.
The Accounts Receivable has therefore reduced in value from 2017 to 2018 by;
= 11,000 - 6,000
= $5,000
Seeing as Receivables have decreased, this means that some of those owing the business have paid their debt and so are no longer Accounts Receivable.
This payment of debt will increase the cash provided by operating activities.
Statement of Members' Equity, Admitting New Member The statement of members' equity for Bonanza, LLC, follows:
Bonanza, LLC Statement of Members' Equity For the Years Ended December 31, 20Y3 and 20Y4
Idaho Properties, LLC, Member Equity Silver Streams, LLC, Member Equity Thomas Dunn, Member Equity Total Members' Equity
Members' equity, January 1, 20Y3 $273,000 $307,000 $580,000
Net income 57,000 133,000 190,000
Members' equity, December 31, 20Y3 $330,000 $440,000 $770,000
Dunn contribution, January 1, 20Y4 3,000 7,000 $220,000 230,000
Net income 62,500 137,500 50,000 250,000
Member withdrawals (32,000) (48,000) (40,000) (120,000)
Members' equity, December 31, 20Y4 $363,500 $536,500 $230,000 $1,130,000
Required:
a. What was the income-sharing ratio in 2016?
b. What was the income-sharing ratio in 2017?
c. How much cash did Thomas Dunn contribute to Bonanza, LLC, for his interest?
d. Why do the member equity accounts of Idaho Properties, LLC, and Silver Streams, LLC, have positive entries for Thomas Dunn’s contribution?
e. What percentage interest of Bonanza did Thomas Dunn acquire?
f. Why are withdrawals less than net income?
Answer:
a. Idaho Properties, LLC = $57000/190000 = 0.3 = 30%
Silver Streams, LLC = $133000/$190000 = 0.7 = 70%
income-sharing ratio = 3:7
b. Idaho Properties, LLC = 62500/250,000 = 0.25 = 25.0%
Silver Streams, LLC = 137500/250,000= 0.55 = 55.0%
Thomas Dunn = 50000/250,000 = 0.20 = 20.0%
income-sharing ratio = 25:55:20
c. Thomas Dunn’s provided a $230,000 cash contribution to the business. The amount credited to his member equity account is this amount less a $10,000 bonus paid to the other two members
d. The positive entries is due to bonus paid by Thomas Dunn
e. Thomas Dunn contribution $230,000
Idaho Properties, LLC, member equity $330,000
SilverStreams, LLC, member equity $440,000
Total Equity $1,000,000
Dunn Contribution/Total member equity = $220,000/$1,000,000 = 0.22 = 22%
The McMahon Construction Company builds bridges. In September and October 20XX, the company worked on a bridge covering the Kleinfeld River in Northern Montana. The McMahon Company has two departments, the Precast Department and the Construction Department. The Precast Department is responsible for building structural elements of bridges in temporary locations (plants) located near the construction sites. The Construction Department operates at the bridge site and they are responsible for assembling the precast structural elements. The estimated costs for Kleinfeld River Bridge for the Precast Department were $ 1,750,000 for direct materials, $ 240,000 for direct labor, and $300,000 for overhead. The estimated costs for the Construction Department regarding the Kleinfeld River Bridge were $ 400,000 for direct materials, $ 180,000 for direct labor, and $ 260,000 for overhead. Overhead is applied on the last day of the month. The Overhead application rate for the Precast Department is $ 30 per direct labor hour. The Overhead application for the Construction Department is 150 percent of direct labor cost.
Transactions for September
Sept 1- Purchased $ 1,170,000 of material on account for the Precast Department to start the building of structural elements. All of the material was issued to production, of the issuance amount, $ 720,000 is considered direct material.
Sept 4- Installed utilities at bridge site at a total cost of $30,000. The amount will be paid later in the month. (Transaction applies to Construction Department)
Sept 6-Paid rent for the temporary construction site housing the Precast Department, $ 7,200.
Sept 15- Completed the bridge support pillars by the Precast Department and transfer everything to the construction site.
Sept 19- Paid machine rental expense of $ 65,000 incurred by the Construction Department for clearing the bridge site and digging the foundations for bridge supports.
Sept 23- Purchased additional materials costing $1,510,000 on account.
Sept 30-The company paid the bills for the Precast Department: utilities, $ 7,200; direct labor, $50,000; insurance, $ 6,700, indirect labor, $ 8,200. Departmental depreciation was recorded, $21,500.
Sept 30-The company paid the bills for the Construction Department: utilities, $ 2,600; direct labor, $19,500; indirect labor, $6,100; and insurance, $ 2,500. Department depreciation was recorded on equipment, $ 9,450. Sept 30- Issued a check to pay for the material purchased on Sept 1 and Sept 23. Sept 30-Applied overhead to production in each department; 6,400 machine hours were worked in the Precast Department for September. Note: Direct Labor Costs for the Construction Department were $19,500.
Transactions for October
Oct 1- Transferred additional structural elements from the Precast Department to the construction site. The construction department incurred an expense of $ 7,000 to rent a crane.
Oct 4- Issued $1,010,000 of material to the Precast Department. Of this amount, $860,000 was considered direct.
Oct 7- Paid rent of cash of $ 7,500 in cash for the temporary site that is occupied by the Precast Department.
Oct 12-Issued $ 390,000 of material to the Construction Department. Of this amount, $ 220,000 was considered direct.
Oct 15-Transferred additional structural elements from the Precast Department to the construction site.
Oct 25-Transferred the final batch of structural elements from the Precast Department to the construction site.
Oct 29-Completed the bridge.
Oct 31-Paid the final bills for the month in the Precast Department: utilities, $ 14,000; direct labor, $120,000; insurance, $10,200; indirect labor, $18,300. Department depreciation was recorded, $21,500.
Oct 31-Paid the final bills for the month in the Construction Department: utilities, $ 5,300; direct labor, $144,500; indirect labor, $19,200; and insurance, $ 7,400. Depreciation was recorded on equipment was $9,450.
Oct 31-Applied overhead in each department. The precast department recorded 4,120 machine hours in October.
Oct 31-Billed the state of Montana for the completed bridge at the contract price of $3,850,000.
Oct 31-Please record the cost of the completed jobs to Finished Goods Inventory.
Required:
Journalize the entries for the preceding transactions. For purposes of this case study it is not necessary to transfer direct material and direct labor from one department to another.
Answer:
The McMahon Construction Company
Journal Entries:
Sept. 1:
Debit Precast Direct Materials Inventory $1,170,000
Credit Accounts Payable $1,170,000
To record the purchase of materials on account for Precast.
Debit Work in Process-Precast $720,000
Debit Manufacturing Overhead (Precast Dept.) $450,000
Credit Precast Direct Materials Inventory $1,170,000
Sept. 4:
Debit Manufacturing Overhead (Construction Dept.):
Utilities Expense $30,000
Credit Utilities Payable $30,000
To recorde utilities installed at bridge site.
Sept 6:
Debit Manufacturing Overhead (Precast Dept.):
Rent Expense $7,200
Credit Cash Account $7,200
To record the payment of rent for the temporary construction site.
Sept. 15:
No journal entries.
Sept 19:
Debit Manufacturing Overhead (Construction Dept.):
Machine Rental Expense $65,000
Credit Cash Account $65,000
To record the payment of machine rental expense
Sept. 23:
Debit Direct Materials Inventory $1,510,000
Credit Accounts Payable $1,510,000
To record the purchase of additional materials on account.
Sept. 30:
Debit:
Utilities Payable-Precast Dept $7,200
Direct labor -Precast Dept. $50,000
Debit Manufacturing Overhead (Precast Dept.):
Insurance Expense- Precast $6,700
Indirect labor $8,200
Credit Cash Account $72,100
Debit Manufacturing Overhead (Precast Dept.):
Depreciation Expense$21,500
Credit Accumulated Depreciation - Precast Dept $21,500
To record the depreciation expense for the month.
Sept. 30:
Debit Work in Process: Direct labor $19,500
Debit Manufacturing Overhead (Construction Dept.):
Utilities Expense t $2,600
Indirect labor $6,100
Insurance Expense $2,500
Credit Cash Account $30,700
Debit Manufacturing Overhead (Construction Dept.):
Depreciation Expense $9,450
Credit Accumulated Depreciation - Construction Dept $9,450
To record the depreciation expense for the month.
Debit Accounts Payable $2,680,000
Credit Cash Account $2,689,000
To record the payment on account by a check issued.
Debit Work in Process (Precast) $192,000
Credit Manufacturing Overhead (Precast) $192,000
To apply overhead to production in Precast Dept.
Debit Work in Process (Construction Dept.) $29,250
Credit Manufacturing Overhead (Construction Dept.) $9,250
To apply overhead to production in the construction department.
October:
Oct. 1:
Debit Manufacturing Overhead (Construction Dept.) $7,000
Credit Cash Account $7,000
To record the cost of rental a crane.
Oct. 4:
Debit Raw Materials Inventory (Precast) $860,000
Debit Manufacturing Overhead (Precast) $150,000
Credit Raw Materials Inventory.
Oct. 7:
Debit Manufacturing Overhead (Precast Dept.):
Rent Expense $7,500
Credit Cash Account $7,500
To record the payment of rent for cash.
Oct. 12:
Debit Work in Process (Construction Dept.) $220,000
Debit Manufacturing overhead-170,000
Credit Raw Materials $390,000
To record the issue of materials to the construction dept.
Oct. 15:
No Journal Entries required
Oct. 25:
No Journal Entries required
Oct. 29:
No. Journal Required
Oct. 31:
Debit:
Work in Process (Direct labor) $120,000
Manufacturing Overhead (Precast):
Utilities $14,000
Insurance $10,200
Indirect labor $18,300
Credit Cash Account $162,500
Oct. 31:
Debit Manufacturing Overhead (Precast Dept.):
Depreciation Expense$21,500
Credit Accumulated Depreciation - Precast Dept $21,500
To record the depreciation expense for the month.
Oct 31:
Debit Work in Process: Direct labor $144,500
Debit Manufacturing (Construction Dept.):
Utilities Expense t $5,300
Indirect labor $19,200
Insurance Expense $7,400
Credit Cash Account $176,400
To record the payment of cash for the expense
Debit Manufacturing Overhead (Construction Dept.):
Depreciation Expense $9,450
Credit Accumulated Depreciation - Construction Dept $9,450
To record the depreciation expense for the month.
Debit Work in Process (Precast) $123,600
Credit Manufacturing Overhead (Precast) $123,600
To apply overhead to production in Precast Dept.
Debit Work in Process (Construction Dept.) $216,750
Credit Manufacturing Overhead (Construction Dept.) $216,750
To apply overhead to production in the construction department.
Debit Accounts Receivable (State of Montana) $3,850,000
Credit Service Revenue $3,850,000
To record the billing of the state for the completed bridge.
Debit Finished Goods Inventory $1,835,600
Credit Work in Process $1,835,600
To record the cost of the completed jobs.
Explanation:
a) Data:
Estimated costs for Kleinfeld River Bridge
Precast Construction
Department Department
Direct materials $ 1,750,000 $ 400,000
Direct labor 240,000 180,000
Overhead 300,000 260,000
Overhead application $30 per DMH 150% DL
Machine hours worked 6,400 MH $19,500
Work in Process:
Materials $720,000
Direct labor (precast) 50,000
Direct labor (construction) 19,500
Overhead applied 192,000
Overhead applied 29,250
Materials 220,000
Direct labor 120,000
Direct labor 144,500
Overhead applied 123,600
Overhead applied 216,750
Total cost $1,835,600
Your neighbor is asking you to invest in a venture that will double your money in 7 year(s). Compute the annual rate of return that he is promising you?
Answer: 10.3%
Explanation:
The Rule of 72 is useful here. The rule of 72 can be used to calculate the amount of time it would take to double an investment by dividing 72 by the interest rate.
As we already have the number of years the formula is;
7 = 72/i
i = 72/7
i = 10.3%
In a large open economy , an investment tax credit raises the real interest rate, __________ the trade balance, and __________ net capital inflow.
Answer:
The correct approach will be "decreases, decreases."
Explanation:
The investment tax incentive helps corporations to exclude a portion of the expense including its investment towards taxes. This raises disposable income unintentionally. This increase in household inflation rate is contributing to something like an increase in the rate of trade.As either the significance of the domestic country's currency, export industries decreasing trend as well as imports rise, resulting throughout a decline throughout the terms of payment. The capital flows grow and indeed the outflow declines even as actual interest rates go up, the decline in net investment output.How can you enable your sales team to perform better?
A. by enforcing stringent rules
B. by providing them with training and other supporting material
C. by permitting them the freedom to do whatever they think is right
D. by increasing their pay more often than the rest of the workforce
Answer: i think its B because it makes the most sense out of them all
Explanation:
I WILL GIVE BRAIN
After seviewing the technical skills required to perform tasks in the manufacturing industry, do you think these skills are
more or less important than the interpersonal skills we discussed in previous units?
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:
Units:
Beginning Inventory: 30,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 120,000.
Units completed and transferred out: 150,000.
Ending Inventory: 32,500 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $48,000.
Costs in beginning Work in Process - Conversion: $53,850.
Costs incurred in February - Direct Materials: $328,050.
Costs incurred in February - Conversion: $604,150.
Required:
Calculate the cost per equivalent unit of materials.
Answer:
Cost per equivalent unit of material = $2.06
Explanation:
Total cost of material= Cost of material in beginning WIP + Cost of material incurred in February
= $48,000 + $328,050
= $376,050
Equivalent units = Number of units completed and transferred+ Ending inventory
= 150,000 units + 32,500 units
= 182,500 units
Cost per equivalent unit of material = Total cost of direct material / Equivalent units
= $376,050 / 182,500 units
= $2.06
on an annal basis, the first set of expenses is ____% of the second set of expenses. MAria spends 17 dollars on lottery tickets every week and spends
Completion Question:
On an annualbasis, the first set of expenses is _______% of the second set of expenses. Maria spends $17 on lottery tickets every week and spends $133 per month on food. On an annual basis, the money spent on lottery tickets is % of the money spent to buy food. (Round to the nearest percent asneeded.)
Answer:
Maria's Spending
On an annualbasis, the first set of expenses is ____55.39___% of the second set of expenses. Maria spends $17 on lottery tickets every week and spends $133 per month on food. On an annual basis, the money spent on lottery tickets is 55.39 % of the money spent to buy food.
Explanation:
Maria spends $17 on lottery tickets every week
Therefore, every 4-week month, she spends $68 ($17 * 4) on lottery tickets
Normally, a year = 52 weeks.
Annually, Maria spends $884 ($17 * 52) on lottery tickets
Also
Maria spends $133 per month on food.
Normally, a year = 12 months.
Annually, she spends $1,596 ($133 x 12) on food
Ratio of Lottery tickets to Food annually:
= $884 : $1,596
= $884/$1,596
= 55.39%
or
0.5539 : 1
b) What is done here is to convert to each cost to its annual equivalent. The cost of Lottery tickets was converted from per week basis to per annum. The cost of food was converted from per month basis to per annum. These conversions make the two variables comparable, since they have been reduced to similar standards of measurement.
Deferral adjustments are needed when the business:
a. Pays cash after the expense has been incurred.
b. Unanswered pays cash before the expense has been incurred.
c. Unanswered receives cash after the revenue has been generated.
d. Unanswered receives cash before the revenue has been generated.
Answer:
The correct answers are the options B and D: Pays cash before the expense has been incurred. And receives cash before the revenue has been generated.
Explanation:
To begin with, in the accounting field the term of "Deferral Adjustments" refers to those that the accountant does when they postpone the report of it in the income statement until a later period, so that means that when an event happens they might decide to postpone the report of that particular transaction doing what it is called "defer". Moreover, the two most common cases when the accountants use this technique are the ones choosen from the options, the cases B and D.
asper makes a $28,000, 90-day, 8.5% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is: (Use 360 days a year.)
Answer:
$595
Explanation:
The computation of the amount of interest is shown below:-
Amount of interest = Loan amount × Interest rate × Number of days ÷ Number of days in a year
= $28,000 × 8.5% × 90 ÷ 360
= $595
Therefore for computing the amount of interest we simply applied the above formula.
And the same is to be considered
You have a tax basis of ​$ and a useful life of five years and no salvage value. Provide a depreciation schedule ​(dk for k1​5) for ​% declining balance with switchover to straight line. Specify the year to switchover. Determine the depreciation amounts using the ​% declining balance and​ straight-line methods and BV amounts for each year
Answer:
the numbers are missing, so I will use another question as an example:
the asset's cost is $100,000useful life is 5 yearsno salvage value150% declining balancestraight line depreciation = $100,000 / 5 = $20,000
150% declining balance depreciation year 1 = 1.5 x $100,000 x 1/5 = $30,000, since it is higher than straight line we will use declining balance
book value at end of year 1 = $100,000 - $30,000 = $70,000
straight line deprecation = $70,000 / 4 = $17,500
150% declining balance depreciation year 2 = 1.5 x $70,000 x 1/5 = $28,000, since it is higher than straight line we will use declining balance
book value at end of year 2 = $70,000 - $28,000 = $42,000
straight line depreciation = $42,000 / 3 = $14,000, since it is higher than declining balance we will use straight line ⇒ switchover year
150% declining balance depreciation year 3 = 1.5 x $42,000 x 1/5 = $12,600
book value at end of year 3 = $42,000 - $14,000 = $28,000
depreciation year 4 = $14,000 (straight line)
book value at end of year 4 = $28,000 - $14,000 = $14,000
depreciation year 5 = $14,000 (straight line)
book value at end of year 5 = $14,000 - $14,000 = $0
According to the article, companies that have successfully used the discrimination and fairness paradigm to increase their demographic diversity.
a. are usually run by leaders who value due process and equal treatment of all employees
b. are usually run by leaders who have top-down directives
c. to enforce initiatives often have entrenched, easily observable cultures operate in a business environment where there is increased diversity among customers, clients, or the labor pool
Hi, your question is incomplete. I believe you are referring to the Havard Business Review online Article.
Answer:
a, b, and c.
Explanation:
It is worth remembering that the article stated that their research shows that a leader's desire to use the discrimination and fairness paradigm, often reflects how much value the leader places on following due process and equal treatment of his or her employees.
The article also points to their findings suggested that such organizations are run by leaders who have top-down directives .
Carol really doesn't like her new boss and is not happy with the new tasks she's been assigned and the long hours she's been working. Still, she truly believes in what the company is trying to accomplish. Carol has Question 9 options: 1) low organizational commitment. 2) poor job enrichment. 3) poor job performance. 4) low job satisfaction. 5) low job involvement.
Answer:
4)Low job satisfaction
Explanation:
From the question, we are informed that Carol really doesn't like her new boss and is not happy with the new tasks she's been assigned and the long hours she's been working. But she still truly believes in what the company is trying to accomplish.
In this case , Carol has Low job satisfaction.
Whenever an employee job
has satisfaction, he/she will be motivated, it always result to efficiency in the part of employees, they ten to work harder for acheiving the goal of the organization which in turn result to good overall performance of the organization. But in the situation whereby an employee has
Low job satisfaction, the reverse is the case, he/she will not be happy with task given to him/her, no motivation.
Factors that improve Low job satisfaction are;
✓Assuring job security for employee
✓Job benefits
✓Good relationship between employee and employer.
Which of the following best defines "Isolationist.?
a. The concept that a whole can derive more value than the combination of the individual parts. A common expression in defining synergy is 1+1 = 3, or each piece derives more value that it would on its own.
b. Two or more systems that depend or support one another, often achieving mutual benefit.
c. The process of international integrating arising from the interchange of world views, products, ideas, and other aspects of culture.
d. The notion that we have certain rights and responsibilities towards each other by the mere fact of being human on Earth.
e. Pertaining to a national (or group) policy of non-interaction with other nations (or groups).
Answer:
e. Pertaining to a national (or group) policy of non-interaction with other nations (or groups).
Explanation:
Isolationist is a strategic approach pertaining to a national (or group) policy of non-interaction with other nations (or groups). This ultimately implies that, an isolationist refers to a country that has a diplomatic policy of non-interaction or avoiding to have any form of alliance with other countries.
Generally, countries choose to practice isolationism because they want to avoid foreign economic commitments, preserve her identity and culture, protect its territory, etc. Between 1641 to 1853, The Tokugawa shogunate of Japan adopted isolationism known as "Kaikin" which made it avoid contact or alliance with other countries. Also, in 1930 China was isolationist by banning all maritime shipping activities.
Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2021. Insight Machines manufactured the equipment at a cost of $350,000 and lists a cash selling price of $437,810. Appropriate adjusting entries are made quarterly.
Related Information:
Lease term 5 years (20 quarterly periods)
Quarterly lease payments $26,250 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter
Economic life of asset 5 years
Interest rate charged by the lessor 8%
Required:
a. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
b. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
Answer:
a. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
we must first determine the present value of the lease payments:
PV of lease payments = quarterly payment x annuity factor
quarterly payment = $26,250PV annuity due factor, 2%, 20 periods = 16.67846PV of lease payment = $26,250 x 16.67846 = $437,809.56 ≈ $437,810
January 1, 2021, equipment leased from Insight Machines
Dr Right of use asset 437,810
Cr Lease payable 437,810
January 1, 2021, first lease payment
Dr Lease payable 26,250
Cr Cash 26,250
March 31, 2021, second lease payment
Dr Lease payable 18,019
Dr Interest expense 8,231
Cr Cash 26,250
interest expense = ($437,810 - $26,250) x 2% = $8,231
March 31, 2021, amortization expense
Dr Amortization expense 21,891
Cr Right of use asset 21,891
amortization expense = $437,810 / 20 = $21,891
b. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
January 1, 2021, equipment leased to Eye Deal
Dr Lease receivable 437,810
Cr Lease revenue 437,810
Dr Cost of goods sold 350,000
Cr Equipment 350,000
January 1, 2021, first lease payment
Dr Cash 26,250
Cr lease receivable 26,250
March 31, 2021, second lease payment
Dr Cash 26,250
Cr Lease receivable 18,019
Cr Interest revenue 8,231
Ayayai Inc. wishes to accumulate $1,066,000 by December 31, 2030, to retire bonds outstanding. The company deposits $164,000 on December 31, 2020, which will earn interest at 8% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,066,000 is available at the end of 2030.
Answer:
Quarterly deposit= $11,653.28
Explanation:
Future Value= $1,066,000
Number of periods= 10*4= 40 quarters
Interest rate= 0.08/4= 0.02
First, we need to calculate the future value of the initial investment. Then, determine the difference required to reach the objective.
FV= PV*(1+i)^n
FV= 164,000*(1.02^40)
FV= $362,118.50
Difference= 1,066,000 - 362,118.5= $703,881.5
To calculate the quarterly deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= quarterly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (703,881.5*0.02) / [(1.02^40) - 1]
A= $11,653.28
Mr Store who runs his photocopy business working 8 hours per day process 100 scripts. He estimates his labour cost to be € 9 per hour. Also he has estimated that the total material cost for each script is approximately € 2; while the daily expenses are €28. Calculate the multifactor productivity. In an effort to increase the rate of the photocopy process to 150 scripts, he decides to change the quality of ink thus raising the mate- rial cost to € 2.5 per day. Is the new productivity better than before? If Mr Store would like to increase the photocopy process to 150 scripts without sacrificing the initial multifactor productivity, by what amount has the material costs to be increased?
Answer:
A) 0.33 scripts per euro
B) The new productivity is worse than the old productivity
C) 0.333 euros per script
Explanation:
number of hours worked per day = 8
number of scripts processed per day = 100
Labor cost per hour = 9 euros
Total labor cost per day = 9 * 8 = 72 euros
material cost per script = 2 euros
Total material cost per day = 2 * 100 = 200 euros
daily expenses = 28 euros
A) Calculate the multifactor productivity
= output / Total cost
Total cost = ( 72 + 200 + 28 ) = 300
= 100 / 300
= 0.33 scripts per euro
B ) compare the old and new productivity
Old productivity = 0.33 scripts / euro
new multifactor productivity
= output / Total cost
Total cost = (8*9)+(150*2.5)+28 = 475
= 150 / 475
= 0.3158 scripts per euro
hence the new productivity is worse than the old productivity
C ) using the initial multifactor productivity of 0.333
calculate the target total cost = output / multifactor of productivity
= 150/0.333
= 450 euros
hence Material cost = (450 - 8*9-28)/150
= 2.33 euro per script
So, the material cost will be increased by = 2.33 euros - 2
euros
= 0.333 euros per script
Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) _____________ distribution strategy for their products.
Answer:
A.intensive
Explanation:
Products such as chocolate bars and chips fit the classification of non-durable consumer goods, that is, those that are produced for immediate consumption.
Its characteristics involve meeting the needs of the final consumer periodically, generally they are low-cost products that need quick replacement to meet the high demand for these non-durable products.
Therefore, the best strategy for the distribution of non-durable products is the intensive strategy, making it available in different places with easy access to the consumer and with high replacement.
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March 1 6,000 Materials inventory, March 31 8,000 Direct labor 25,000 Factory overhead 37,000 Work in process inventory, March 1 22,000 Work in process inventory, March 31 23,500 Finished goods inventory, March 1 21,000 Finished goods inventory, March 31 30,000 Sales 257,000 Selling and administrative expenses 79,000
Prepare a schedule of cost of goods manufactured. Enter all amounts as positive numbers. Zoe Corporation Statement of Cost of Goods Manufactured For the Month Ended March 31
Answer:
Explanation:
The preparation of the cost of goods manufactured is presented below:
Zoe Corporation
Statement of Cost of Goods Manufactured
For Month Ended March 31, 20XX
Work in process inventory March 1 $22,000
Direct materials :
Materials inventory, March 1 $6,000
Add: Purchases $92,000
Cost of materials for use $98,000
Less - materials inventory, March 31 -$8,000
cost of materials placed in production $90,000
Add:
Direct labor $25,000
Factory overhead $37.000
Total manufacturing costs added $152,000
Total manufacturing costs $174,000
Less- work in process inventory, March 31 $23,500
Cost of goods manufactured $150,500