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Tuesday, 14 June 2016

ABC Company’s has December unit sales of 12,000 units. Assuming a 5% growth, what is the projected unit sales.

ABC Company’s has December unit sales of 12,000 units. Assuming a 5% growth, what is the projected unit sales.


ABC Company’s has December unit sales of 12,000 units. Assuming a 5% growth, and a selling price per unit of $40, what is the projected unit sales?


ABC Company’s has project the next period sales of 12,000 units. ABC Company desires ending inventory equal to 20% of the next month’s sales. What is the desired inventory?


ABC Company’s has project the next period sales of 12,000 units. ABC Company desires ending inventory equal to 20% of the next month’s sales. If the beginning inventory is 100, and the current month’s sales are 14,000, what is the number of units that will need to be purchased for the current month?


ABC Company’s has sales forecasts of the following: January = $40,000; February = $65,000; March=$52,850. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. What are the cash receipts for March?


ABC Company’s has sales forecasts of the following: January = $40,000; February = $65,000. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. If the total cash receipts for March equal $48,250, what is the sales forecast for January?


Assume the following information for the month of August. June sales=$40,000; July sales =$65,000; August sales = $52,850. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. The beginning cash balance is $14,670, with cash payments of $24,653. If the minimum cash balance is $50,000, what is the amount needed by the bank, or how much is available to pay towards the bank loan? Show the amount needed as a positive number and amount reply the loan as a negative number.


Assume the following information for the month of August. June sales=$40,000; July sales =$65,000; August sales = $52,850. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. The beginning cash balance is $14,670, with cash payments of $24,653. If the minimum cash balance is $40,000, what is the amount needed by the bank, or how much is available to pay towards the bank loan? Show the amount needed as a positive number and amount reply the loan as a negative number.


ABC Company pays for merchandise by paying cash and using credit. Credit purchases equal 80% of the purchases. Of those purchased on credit the purchases are paid for as follows: 60% in the current month, 35% in the following, and 5% in the second month following. Assume January purchases are $65,000. How much of the January purchases are paid for in January?


ABC Company pays for merchandise by paying cash and using credit. Of those purchased on credit the purchases are paid for as follows: 60% in the current month, 35% in the following, and 5% in the second month following. Assume January purchases are $65,000. How much of the January purchases are paid for in January?


                                       



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Monday, 22 February 2016

In December 2012, Yerbury Company’s manager estimated next year’s total direct labor cost assuming 50 persons working an average of 2,000 hours each at an average wage rate of $25 per hour. The manager also estimated the following manufacturing overhead costs for year 2013.

In December 2012, Yerbury Company’s manager estimated next year’s total direct labor cost assuming 50 persons working an average of 2,000 hours each at an average wage rate of $25 per hour. The manager also estimated the following manufacturing overhead costs for year 2013.
 
        
  Indirect labor $ 319,200  
  Factory supervision   240,000  
  Rent on factory building   140,000  
  Factory utilities   88,000  
  Factory insurance expired   68,000  
  Depreciation—Factory equipment   480,000  
  Repairs expense—Factory equipment   60,000  
  Factory supplies used   68,800  
  Miscellaneous production costs   36,000  
  

 
  Total estimated overhead costs $ 1,500,000  
  



 

 
At the end of 2013, records show the company incurred $1,520,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $604,000; Job 202, $563,000; Job 203, $298,000; Job 204, $716,000; and Job 205, $314,000. In addition, Job 206 is in process at the end of 2013 and had been charged $17,000 for direct labor. No jobs were in process at the end of 2012. The company’s predetermined overhead rate is based on direct labor cost.


Required
1.a Determine the predetermined overhead rate for year 2013.
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1.b
Determine the total overhead cost applied to each of the six jobs during year 2013.
 
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Assuming that any over- or underapplied overhead is not material, prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold at the end of year 2013.
 
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Explanation:
1.a
Predetermined overhead rate
 
Estimated overhead costs   $1,500,000   $1,500,000    

=
=
=  60%
Estimated direct labor cost   [50 × 2,000 × $25]   $2,500,000    
 
1.c
Overapplied or underapplied overhead determination
          
  Actual overhead cost $ 1,520,000    
  Less: Applied overhead cost   1,507,200    
  


 
  Underapplied overhead $ 12,800    
  





 

After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.

Farina Bay’s computer system generated the following trial balance on December 31, 2013. The company’s manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts.
   
    Debit     Credit  
  Cash $ 102,000        
  Accounts receivable   75,000        
  Raw materials inventory   80,000        
  Goods in process inventory   0        
  Finished goods inventory   15,000        
  Prepaid rent   3,000        
  Accounts payable       $ 17,000  
  Notes payable         25,000  
  Common stock         50,000  
  Retained earnings         271,000  
  Sales         373,000  
  Cost of goods sold   218,000        
  Factory payroll   68,000        
  Factory overhead   115,000        
  Operating expenses   60,000           




  Totals $ 736,000 $ 736,000
 



 



 

   
After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.
   
 
  Materials requisition 21-3010:   $ 10,200  direct materials to Job 402
  Materials requisition 21-3011:   $ 18,600  direct materials to Job 404
  Materials requisition 21-3012:   $   5,600  indirect materials
  Labor time ticket 6052:   $ 36,000  direct labor to Job 402
  Labor time ticket 6053:   $ 23,800  direct labor to Job 404
  Labor time ticket 6054:   $   8,200  indirect labor

   
Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.

a. Direct materials costs to Goods in Process Inventory.
b. Direct labor costs to Goods in Process Inventory.
c. Overhead costs to Goods in Process Inventory.
d. Indirect materials costs to the Factory Overhead account.
e. Indirect labor costs to the Factory Overhead account.

Required:
1.
Prepare journal entries to assign the above costs.
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Explanation:

2.1
Determine the revised balance of the Factory Overhead account after making the entries in part 1 using T-accounts. Determine whether there is any under- or overapplied overhead for the year.

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2.2
Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material.
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Explanation:
2.1 
  Revised Factory Overhead account          
  Ending balance from trial balance $ 115,000     debit
  Applied to Jobs 402 and 404   (119,600 )   credit
  Additional indirect materials   5,600     debit
  Additional indirect labor   8,200     debit
  


   
  Underapplied overhead $ 9,200     debit
  





   

 3.
Prepare a revised trial balance.
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Explanation:
Raw materials inventory
         
  Balance per trial balance $ 80,000    
  Less: Amounts recorded for Jobs 402 and 404   (28,800 )  
  Less: Indirect materials   (5,600 )  
  


 
  Ending balance $ 45,600    
  





 

   
Goods in process inventory
  Job 402   Job 404     Total  
  Direct materials $ 10,200   $ 18,600   $ 28,800  
  Direct labor   36,000     23,800     59,800  
  Overhead   72,000     47,600     119,600  
  

 

 

 
  Total cost $ 118,200   $ 90,000   $ 208,200  
  



 



 



 


4.1
Prepare an income statement for year 2013.
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Explanation:
Retained earnings ($271,000 + $85,800) = $356,800