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2 years ago

Forest Components makes aircraft parts. The following transactions occurred in July:

Business

2 answers:

katrin [286]2 years ago

8 0

Answer:

Raw Materials Debit Credit

Beginning balance $12, 480 Journal 2 $16, 860

Journal 1 $16, 880

Journal 5 $2, 040 Balance b/d $14, 540

$31, 400 $31, 400

Ending balance $14, 540

Work in Process Debit Credit

Beginning balance $10, 600 Journal 5 $2, 040

Journal 2 $16, 860

Journal 9 $27, 946 Balance b/d $84, 766

Journal 6 $31, 400

$86, 806 $86, 806

Ending balance $84, 766

Finished Good Debit Credit

Beginning balance $2, 650 Cost of goods sold $73, 700

Work in process $78, 010

Balance b/d $6, 960

$80, 660 $80, 660

Ending balance $6, 960

Cost of Goods Sold Debit Credit

Finished Goods $73, 700 Income Summary $73, 700

Explanation:

Before we can prepare the inventory ledger accounts, we have to record journal entries of the transactions so that it may be easy to arrive at the balances of the accounts.

1. Dr Raw materials inventory $16, 880

Cr Accounts payable $16, 880

To record the raw material purchases

2. Dr Work in process inventory $16, 860

Cr Raw materials inventory $16, 860

To record direct materials issued to the production department

3. Dr Supplies $1, 360

Cr Raw materials inventory $1, 360

To record supplies issued

4. Dr accounts payable $16, 880

Cr cash $16, 880

To record the payment of the materials purchased on account

5. Dr Raw materials inventory $2, 040

Cr Work in process inventory $2, 040

To record inventory returned by the production department

6. Work in process inventory $31, 400

Cr Cash $31, 400

To record the payment of direct labor

7. Dr factory overhead $17, 220

Cr Accounts payable $17, 220

To record miscellaneous items purchased for the manufacturing plant

8. Dr Factory overhead $35, 400

Cr Accumulated depreciation $35, 400

To record depreciation on the manufacturing plant

9. Dr work in process inventory $27, 946

Cr Factory overhead $27, 946

To record overhead cost applied in July

We can now prepare the inventory ledger accounts

Raw Materials Debit Credit

Beginning balance $12, 480 Journal 2 $16, 860

Journal 1 $16, 880

Journal 5 $2, 040 Balance b/d $14, 540

$31, 400 $31, 400

Ending balance $14, 540

Work in Process Debit Credit

Beginning balance $10, 600 Journal 5 $2, 040

Journal 2 $16, 860

Journal 9 $27, 946 Balance b/d $84, 766

Journal 6 $31, 400

$86, 806 $86, 806

Ending balance $84, 766

Finished Good Debit Credit

Beginning balance $2, 650 Cost of goods sold $73, 700

Work in process $78, 010

Balance b/d $6, 960

$80, 660 $80, 660

Ending balance $6, 960

Cost of Goods Sold Debit Credit

Finished Goods $73, 700 Income Summary $73, 700

Marina86 [1]2 years ago

7 0

Answer:

Explanation: see attachment below

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Human Resource Consulting (HRC) surveyed a random sample of 60 Twin Cities construction companies to find information on the cos

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Answer:

a. Compute the standard error of the sample mean for HRC.

mean = 502
standard deviation = 100
sample size = 60
standard error = 100 / √60 = 12.9

b. What is the chance HRC finds a sample mean between $477 and $527?

P(477 ≤ X ≤ 527) = P(477 ≤ X - 502 ≤ 527 - 502)

= [(477 - 502) / 12.9] ≤ [(X - 502) / 12.9] ≤ [(527 - 502) / 12.9]

since (X - 502) / 12.9 = z, then

= -1.938 ≤ z ≤ 1.938

so P(477 ≤ X ≤ 527) = P(-1.938 ≤ z ≤ 0) + P(0 ≤ z ≤ 1.938)

z = 1.4662

P(477 ≤ X ≤ 527) = 0.4718 + 0.4718 = 0.9436

c. Calculate the likelihood that the sample mean is between $492 and $512.

P(492 ≤ X ≤ 512) = P(492 ≤ X - 502 ≤ 512 - 502)

= [(492 - 502) / 12.9] ≤ [(X - 502) / 12.9] ≤ [(512 - 502) / 12.9]

since (X - 502) / 12.9 = z, then

= -0.775 ≤ z ≤ 0.775

so P(477 ≤ X ≤ 527) = P(-0.775 ≤ z ≤ 0) + P(0 ≤ z ≤ 0.775)

z = 0.4906

P(477 ≤ X ≤ 527) = 0.2844 + 0.2844 = 0.5688

d. What is the probability the sample mean is greater than $550?

P(550 ≤ X) = P(550 - 502 ≤ X - 502)

= P(48/12.9 ≤ z)

= P(3.72 ≤ z)

= 0.5 - P(0 ≤ 3.72 ≤ z)

= 0.5 - 0.5 = 0

5 0

2 years ago

Doughton Furniture Company purchased merchandise on credit from Furniture Supply for $8,000. Two days later Doughton returned $2

sleet_krkn [62]

Answer:

E) General journal

Explanation:

The general journal is used to record all the accounting transactions carried out by a company. If the company uses an accounting tool software or a more complete ERP software, the transaction should be recorded immediately or as soon as possible.

For example, the journal record for this transaction should be:

Dr Accounts Payable account 6,000
Cr Cash account 6,000

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2 years ago

Brockman Guitar Company is in the business of manufacturing top-quality, steelstring folk guitars. In recent years the company h

Kazeer [188]

Answer:

(a) This is ethically wrong. Reasons provided in the explanation section

(b) It is in the company's favor to not indulge in window dressing

Explanation:

(a) To understand the ethical implications of Window Dressing, we must understand what the term implies and why it may be considered right or wrong.

Window dressing is the process of taking certain decisions or actions that would result in the improvement of a company's financial statement (e.g balance sheet/income statement etc). For example, the company might be having a bad final quarter in terms of achieving sales targets so it might resort to given unsustainable discounts or other offerings to some customers to record sales earlier. Or a company might change its depreciation policy to reflect a lower depreciation charge in order to increases reported profits.

As we can see, these are ethically wrong practices since they distort the financial position of the company that is being presented to users of the financial statements. In preparing financial statements, the issuing entity needs to ensure that the information is honest and can be fairly relied on my users of the statements as presenting the fair financial position and performance of the company. Window dressing distorts this purpose and does not provide users of the statements with the actual picture.

(b) We have already identified that Barbara's idea is unethical and therefore, should not be undertaken. Secondly, other than taking a moral view point, window dressing will also hurt a company. By factoring receivables and selling of raw materials inventories, there would be an influx of cash allowing the company to meet the bank's covenants but it does nothing to address the underlying issues of the company. There is a reason that the company is showing consistent negative cash flow position. There needs to be a thorough investigation into why there was an unanticipated buildup of receivables and inventory. Are there bad/doubtful debts? Is there over capacity? Any changes in product demand? These issues need to be resolved first.

Third, this practice is not sustainable. It might be be beneficial in the short term but cannot be sustained in the long run. The same problem may be exacerbated in the next year. Selling raw materials (in an inflationary environment) will add higher cost when the company goes on to produce finished goods in the next year.

Finally, window dressing cannot be so easily hidden under the rug. Auditors, investors and bankers can easily go through your statements and identify this barren attempt. At one point, the banker is unwilling to consider a loan application because of liquidity concerns and then immediately show a huge surplus in cash. The decrease in inventory and receivables will be highlighted very easily which would cause a huge issue to the company in terms of its reputation,thereby putting it in deeper troubles

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2 years ago

An asset (not an automobile) put in service in June 2020 has a depreciable basis of $2,065,000, a recovery period of 5 years, an

faust18 [17]

Answer:

$2,065,000

Explanation:

Based on the information given the maximum amount of cost that can be deducted in the year 2020 will be depreciable basis of the amount of $2,065,000 reason been that 100% is the bonus depreciation that is allowed under bonus election.

Therefore maximum amount of cost that can be deducted in the year 2020 will be the same amount of $2,065,000.

7 0

2 years ago

At the beginning of the year, manufacturing overhead for the year was estimated to be $267,500. At the end of the year, actual d

nignag [31]

Answer:

estimated direct labor hours= 21,400 hours

Explanation:

Giving the following information:

Estimated overhead= $267,500.

Actual direct labor hours= 22,100 hours

Actual manufacturing overhead= $262,500

Overapplied overhead= $13,750

<u>We need to reverse engineer the allocation process of overhead costs to calculate the estimated overhead hour:</u>

Under/over applied overhead= real overhead - allocated overhead

-13,750= 262,500 - allocated overhead

276,250= allocated overhead

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

276,250= Estimated manufacturing overhead rate*22,100

$12.5= Estimated manufacturing overhead rate

Finally, we can calculate the estimated direct labor hours:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

12.5= 267,500/ estimated direct labor hours

estimated direct labor hours= 21,400 hours

7 0

2 years ago