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2 years ago

Sunset Products manufactures skateboards. The following transactions occurred in March:

Business

1 answer:

taurus [48]2 years ago

4 0

Sunset products

Journal entry

1. Dr Material 20500

Cr Account payable 20500

(Material purchased on account)

2. Dr work in process 1050

Cr Material 1050

(material issued)

3. Dr Material 25100

Cr Accounts payable 25100

( Material purchased on account )

4. Dr Accounts payable 20500

Cr Cash 20500

(Paid for material purchased on account)

5. Dr Work in process 30100

Cr Material 30100

( Direct material issued to production department)

6. Dr Work in process 25500

Cr Wages payable 25500

( Direct labor cost incurred)

7. Dr Factory overhead 21600

Cr Cash 21600

( Paid cash for utilities)

8. Dr Work in process (25500*110%) 28050

Cr Applied overhead 28050

(Applied overhead)

9. Dr Factory overhead 5100

Cr Accumulated depreciation 5100

(To record depreciation)

T-account

Work in process Material

Dr___________Cr____ DR ___________CR

16600------ 9150 -----

1050 ----- 20500 ---- 1050

30100 ----- 25100--- 30100

25500---

28050---

Accounts payable Cash

Dr____________Cr_ DR ___________Cr

--- 20500 ---- 20500

----- 25100 ----21600

20500-----

Factory overhead Wages payable

Dr ____________Cr Dr _____________Cr

21600---

-----25500

5100---

Applied factory overhead Accumulated depreciation

Dr_____________Cr Dr ___________Cr_

----28050 ---5100

Cost of goods sold Finished goods

Dr_____________Cr Dr ______________Cr

( open) 65100 ---

101300 --- 36600 (end)

Dr Finished goods 101300

Cr Work in process 101300

(move work in process to finished goods)

Dr Cost of goods sold 129800

Finishd goods 129800

(move finished goods to cost of goods sold)

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Answer:

The answers are:

A) 4.23 years

B) 1.08 years

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Explanation:

The cost of the deadlocks including installation is $110 for each exterior door ($220 total). The cost for installing smoke detectors is $24 for each floor ($48 total).

The discount that Dave and Ellen can get is

$52 per year for installing the deadlocks
$26 per year for installing the smoke detectors

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B) It will take Dave and Ellen 1.08 years ("26/$24) to recover the money spent on the smoke detectors.

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2 years ago

Henry Crouch's law office has traditionally ordered ink refills 70 units at a time. The firm estimates that carrying cost is 40

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Answer:

a. 49.50 units

b. The order quantity should not be changed

Explanation:

a. The computation of the ordering cost is shown below:

Economic order quantity = $\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

where,

Carrying cost = $11 × 40% = $4.4

And, the other items values would remain the same

Now put these values to the above formula

So, the units would equal to

70 = $\sqrt{\frac{2\times \text{245}\times \text{ordering cost}}{\text{\$4.40}}}$

= 49.50 units

b. Since we see that the ordering cost is less than the economic order quantity, the order quantity should not be changed as it leads to increase in the total inventory cost

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2 years ago

You deposit a $100 check from a friend in your account. A couple of days later, you buy $45.20 worth of groceries and pay with a

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Answer:

The correct answer is, $121.2

Explanation:

You went for grocery and paid the bill through check.

Amount of grocery purchased: $45.20

You check bounced and you owe bank $25 because you didn't have much balance in your account that you paid for the groceries.

Your bank did an additional transaction of debiting your account with $25 for the bouncing of your check.

Grocery store sent you the letter to tell that you owe them $25 for the bounced check

You will have to pay again $45.20

Money order fee: $1

So the amount that you actually spent on groceries would be:

$45.2(real grocery amount) + $25(you owe to bank for bouncing your friend's check) + $25( Your check bounced) + $25(grocery store charged due to bounced check) + $1(money order)

= $121.2

So you are actually charged $ 121.2 for the groceries.

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Flat organizational structure

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2 years ago

Ann and Phil work for Broker Don at Hammond Realty. Ann lists a home for $150,000 and Phil sells that home for $145,000. In this

jarptica [38.1K]

Answer:

Hammond Realty

In this transaction, Broker Dan will be considered to be the Principal Broker and owner of Hammond Realty. This can be inferred from the statement that "Ann and Phil work for Broker Don ..." Were the statement to read "Ann and Phil work under Broker Don ...," it would have implied that Broker Don was their manager. "Working for" implies that Hammond Realty is a sole proprietorship owned by Broker Don.

Explanation:

A sole proprietorship is a business entity owned by a person. It is usually not legally separate from the owner, moreso, in tax filing and accounting. Hammond Realty is not a separate legal entity. It is part and parcel of Broker Don. And Broker Don owns the assets and is responsible for the financial obligations of Hammond Realty, to the extent that he would be required to settle the liabilities of Hammond Realty with his personal assets, if Hammond Realty fails.

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