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2 years ago

Kurtz Fencing Inc. uses a job order cost system.

Business

1 answer:

Hunter-Best [27]2 years ago

4 0

Answer:

Required 1.

Raw Materials $45,000 (debit)

Accounts Payable $45,000 (credit)

Materials

Work - In Process : 301 $1,850 (debit)

Work - In Process : 302 $3,150 (debit)

Work - In Process : 303 $2,200 (debit)

Work - In Process : 304 $1,800 (debit)

Work - In Process : 305 $4,230 (debit)

Work - In Process : 306 $1,770 (debit)

Work - In Process : Indirect Materials $1,200 (debit)

Raw Materials $16,200 (credit)

Labor

Work - In Process : 301 $2,500 (debit)

Work - In Process : 302 $7,220 (debit)

Work - In Process : 303 $5,350 (debit)

Work - In Process : 304 $2,400 (debit)

Work - In Process : 305 $6,225 (debit)

Work - In Process : 306 $2,900 (debit)

Work - In Process : Indirect labor $5,000 (debit)

Salaries Payable $31,595 (credit)

Factory Overheads $1,800 (debit)

Account Payable $1,800 (credit)

Work - In Process : Depreciation $2,500 (debit)

Accumulated Depreciation $2,500 (credit)

Work - In Process : 301 $900 (debit)

Work - In Process : 302 $1,800 (debit)

Work - In Process : 303 $1,230 (debit)

Work - In Process : 304 $1,890 (debit)

Work - In Process : 305 $2,100 (debit)

Work - In Process : 306 $1,080 (debit)

Factory Overheads $9,000 (credit)

Finished Goods Inventory : 301 (debit)

Finished Goods Inventory : 302 (debit)

Finished Goods Inventory : 303 (debit)

Finished Goods Inventory : 305 (debit)

Work - In Process Inventory : 301 (credit)

Work - In Process Inventory : 302 (credit)

Work - In Process Inventory : 303 (credit)

Work - In Process Inventory : 305 (credit)

Required 2.

Work In Process T- Account

Debit :

Raw Materials $16,200

Direct Labor $31,595

Overheads

Credit :

Finished Goods

Closing Balance

Finished Goods Inventory T- Account

Debit :

Work In Process

Credit :

Cost of Goods Sold

Closing Balance

Explanation:

Cost of Job 301

Direct Materials $1,850

Direct Labor $2,500

Factory Overheads $900

Total Cost $5,250

Cost of Job 302

Direct Materials $1,850

Direct Labor $2,500

Factory Overheads $900

Total Cost $5,250

Cost of Job 303

Direct Materials $1,850

Direct Labor $2,500

Factory Overheads $900

Total Cost $5,250

Cost of Job 304

Direct Materials $1,850

Direct Labor $2,500

Factory Overheads $900

Total Cost $5,250

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Zhao Co. has fixed costs of $390,600. Its single product sells for $181 per unit, and variable costs are $119 per unit. If the c

Montano1993 [528]

Answer:

37 %

Explanation:

Margin of safety is the difference between expected profit and the break-even point. It is expressed as a percentage of the sales level. the formula is as below

the margin of safety = budgeted sales - break-even/ budgeted sales x 100

For Zhao Co. ltd break-even point is:

Using the contribution margin formula,

break-even = fixed cost/contribution margin per unit

Fixed cost = $390, 600

Contribution margin per unit = Selling price - variable costs

=$181- $119= $62

Breakeven in units = $390,000 / $62 =$6300 units

Break even in dollars = $6300 x $181= 1, 140,300

Expected sales = 10,000 units

sales in dollars = 10,000 x $181= 1, 810, 000

The margin of safety

= 1 810,000- 1140,000/ 1810,000 x 100

=670,000/1810,000 x 100

=0.370165 x 100

=37.016 %

= 37 %

4 0

2 years ago

Vaughn Corporation acquires a coal mine at a cost of $460,000. Intangible development costs total $115,000. After extraction has

Elenna [48]

Answer:

Depletion expense A/c Dr $84,525

To Accumulated depletion A/c

(Being the depletion expense for the first year is recorded)

Explanation:

The journal entry is presented below:

Depletion expense A/c Dr $84,525

To Accumulated depletion A/c

(Being the depletion expense for the first year is recorded)

The computation is shown below

First we have to compute the depletion per ton which is calculated below:

= (Acquired cost of coal mine + Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)

= ($460,000 + $115,000 + $92,000 - $184,000) ÷ (4,600 tons)

= $105

Now if 805 tons are extracted in first year, so the depletion would be

= 805 tons × $105

= $84,525

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2 years ago

Colorado Traffic laws are revised each year by

neonofarm [45]

Puppies :D
I can explain this because this is how or entire country should be ran. Puppies are answers to everything. Don't @ me. ;)

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2 years ago

Redo the company’s income statement at the 5,000-unit level of activity using the contribution format.

adell [148]

Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. (Omit the "£" sign in your response.)
Shipping Expense: 
(86,200 - 45,900) / (5,100 - 2,000) = £13 variable cost per unit 
86,200 - (13 x 5,100) = £19,900 fixed cost 
£ Y = £19,900 + £13 X 

Salaries and Commissions 
(238,400 - 114,400) / (5,100 - 2,000) = £40 variable cost per unit 
238,400 - (40 x 5,100) = £34,400 fixed cost 
£ Y = £34,400 + £40 X 

3. 
Redo the company’s income statement at the 5,100-unit level of activity using the contribution format. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "£" sign in your response.) 

Frankel Ltd. 
Income Statement 
For the Month Ended June 30 
Sales revenue 912900 
Variable expenses: 
Cost of goods sold 346800 
Shipping expenses 5,100 x 13 = 66,300 
Commissions 5,100 x 40 = 204,000 

Contribution margin 295,800 

Fixed expenses: 
Fixed shipping 19,900 
Insurance expenses 9000 
Depreciation expenses 42700 
Sales salaries 34,400 
Advertising expenses 69200 

Net operating Income 120600

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2 years ago

Howard Cooper, the president of Glacier Computer Services, needs your help. He wonders about the potential effects on the firm’s

larisa [96]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

Download xlsx

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2 years ago