Passage for Questions 1-4: The direct labor rate for McGregor's Company is $9.00 per hour, and manufacturing overhead is applied to products using a predetermined overhead rate of $6.00 per direct labor hour. During May, the company purchased $60,000.00 in raw materials (all direct materials) and worked 3,200 direct labor hours.
At the beginning of 2005, the C. Eaton Company had the following balances in its accounts: Cash $6,500 Inventory $9,000 Retained Earnings $15,500 During 2005, the company experienced the following events. 1. Purchased inventory with a list price of $3,000 on account from
Please Help. I am studying and don't understand the following exercises... E9-4 (Lower-of-Cost-or-Market?Journal Entries) Corrs Company began operations in 2007 and determined its ending inventory at cost and at lower-of-cost-or-market at December 31, 2007, and December 31, 2008. This information is presented below.
FIFO and LIFO?Periodic and Perpetual) The following is a record of Pervis Ellison Company's transactions for Boston Teapots for the month of May 2007. May 1 Balance 400 units @ $20 May 10 Sale 300 units @ $38 12 Purchase 600 units @ $25 20 Sale 540 units @ $38 28 Purchase 400 units @ $30 Instructions Assuming that
Dave's Electronics had the following inventory transactions during January: Jan. 1: Beginning Inventory 1,500 units @ $9 each = $13,500 Jan. 15: Purchase 2,000 units @ $8 each = $16,000 Jan. 21: Sold 2,700 units @ $12 each Jan. 22: Purchase 3,000 units @ $7 each = $21,000 Jan. 30: Sold 2,000 u
Mark Knight, owner of Knight Company, is reviewing the quarterly financial statements and thinks the cost of goods sold is out of line with past years. The following historical data is available for 2009 and 2010: 2009: 2010: Net Sales $140,000 $200,000 Cost of goods sold 6
IN CLASS PROBLEMS: Class, the following data applies to all four problems. Good Luck with them! . The Textile Corporation has an inventory conversion period of 45 days, a receivables collection period of 36 days, and payables deferral period of 35 days. . 1) What is the length of the firm's cash conversion cycle? . 2) If
This should not take more than half an hour to complete. 1. Canal Street Financing Corporation needs to borrow long term funds but would prefer not to show more than $ 100 million in face amount of debt outstanding. It also prefers to pay an annual coupon, in the European style, of not more than 6% per annum. Canal's banker
Assuming a 360-day year, claculate what average investment in inventory would be for a firm, given the following information in each case. A.) The firm has sales of 600,000, a gross profit margin of 10 percent, and an inventory trunover ratio of 6. B.) The firm has a cost-of-goods-sold figure of $480,000 and an average age
Pale Company was established on January 1, 20X1. Along with other assets, it immediately purchased land for $80,000, a building for $240,000, and equipment for $90,000. On January 1, 20X5, Pale transferred these assets, cash of $21,000, and inventory costing $37,000 to a newly created subsidiary, Bright Company, in exchange for 10,000 shares of Bright's $6 par value stock. Pale uses straight-line depreciation and useful lives of 40 years and 10 years for the building and equipment, respectively, with no estimated residual values.
Pale Company was established on January 1, 20X1. Along with other assets, it immediately purchased land for $80,000, a building for $240,000, and equipment for $90,000. On January 1, 20X5, Pale transferred these assets, cash of $21,000, and inventory costing $37,000 to a newly created subsidiary, Bright Company, in exchange for
Please see the attached Income statement. The firm uses FIFO inventory accounting. a) Assume in 2009 the same 10,000-unit volume is maintained, but that the sales price increases by 10 percent. Because of FIFO inventory policy, old inventory will still be charged off at $10 per unit. Also assume that seliing and administrativ
Questions: Accrued revenue distortion, plant assets, adjusting entries, CPA president, inventory turnover, self-constructed assets
1. How does failure to record accrued revenue distort the financial reports? If an annual financial report is in error (distorted) what action should be taken? 2. What are the major characteristics of plant assets? Are plant assets necessarily confined to a manufacturing plant? 3. Why is it necessary to make adjusting
Below is selected data for Gertup Corporation as of 12/31/05: Total assets $ 5,500 Current assets 2,750 Long-term debt 450 Current ratio 2.5 Inventory 1,500 For year ended 12/31/05 Sales $18,500 Cost of goods sold
Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the following statements are correct? Cost is greater than NRV is greater than net realizable value replacement cost A. Yes Yes B. No
50. Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $32,000, and its ending inventory on December 31 was understated by $62,000. These errors were not discovered until the following year. As a result, Prunedale's cost of goods sold for this year was: A. Overstated by $94,000
1. A business organized as a corporation a. is not a separate legal entity in most states. b. requires that stockholders be personally liable for the debts of the business. c. is owned by its stockholders. d. has tax advantages over a proprietorship or partnership. 2. Which of the following is the most appropriate and
Inventory records for Herb's Chemicals revealed the following: March 1, 2009, inventory - 1,000 gallons @ $7.20 = $7,200 Purchases: Sales: Mar. 10 - 600 gals @ 7.25 Mar. 5 - 400 gals Mar. 16 - 800 gals @ 7.30 Mar. 14 - 700 gals Mar. 23 - 600 gals @ 7.35 M
P6-7A This information is available for the Automotive and Other Operations Divisions of General Motors Corporationfor 2004. General Motors uses the LIFO inventory method. (in millions) 2004 Beginning inventory $10,960 Ending inventory 11,717 LIFO reserve 1,442 Current assets 55,515 Current liabilities 74,892 C
Judith Thompson is the manager of the student center cafeteria. She is introducing pizza as a menu item. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. Judith anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks a year, 5 days a week. The ordering cost is $15 and the
A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. Period 1 2 3 4 5 6 Requirement 7 8 9 11 12 7 Costs associated with operations are as follows: Wages = $2,000 per worker per month Hiring cost = $1,000 per worker Layoff cost = $1,500 per
The following information is available concerning Stillwater Inc.: Units Unit Cost Beginning inventory 200 $10 Purchases: March 5 300 11 June 12 400 12 August 23 250 13 October 2 150 15 Stillwater, which uses a perpetual system, sold 1,000 units for $22 each during the year. S
(Compute FIFO, LIFO and Average Cost?Periodic and Perpetual) Some of the information found on a detail inventory card for David Letterman Inc. for the first month of operations is as follows. From data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only
In preparing closing entries a. each revenue account will be credited. b.each expense account will be credited. c. the Retained Earnings account will be debited if there is net income for the period. d. the Dividends account will be debited. The closing entry process consists of closing a. all asset and liability account
(Please show works and formulas) 2a. Running Inventory Ramsey's Green Acres sells custom made horse blankets. Fall & winter are strong months for blanket sales. Each blanket is considered a unit. Units sold are anticipated to be: # of Month Units October 200 November 400 December 800 January 600 2000 Total u
See the attached file. Princess Retail Stores started doing business on January I, 2005. The following data reflect its inventory purchases and sales during the year: (see the attachment for the data) Required: 1. Compute gross margin and cost of ending inventory using the periodic FIFO cost flow assumption. 2. Compute
I Understand most of the flow but i am having some difficulty pleale complet and help me check my work. MUST COMPLET ALL FOR CREDIT. PAGE 3636 Student objective page 363 E8-1 Sue Ernesto is the owner of Ernesto's Pizza. Ernesto's is operated strictly on a carryout basis. Customers pick up their orders at a counter where
Describe the kinds of inventory that Wal-Mart holds. What are the costs associated with each kind of inventory?
The inventory record for Item S9 reveals the following for Year 4. The firm uses a periodic inventory system. Units Per Unit Cost Total Inventory, January 1, Year 4 1,800 1.60 2,880 Purchases: February 18 600 1.68 1,008 May 2 900 1.72 1,548 July 26 1,500 1.80 2,700 September 29 1,200 1.84 2,208 December 3 1
Prepare journal entries for each of the following unrelated transactions. You may omit explanations for the journal entries. a. A firm issues 5,000 shares of $2 par value common stock in exchange for $20,000 cash. b. A firm acquires a building with an appraised value of $100,000 for $30,000 cash and the assumption of a 25-ye
Can you help me get started with this assignment? Chapter 6: E6-9 PAGE 272 (SO 5 PAGE 255) E6-9 Delhi Hardware reported cost of goods sold as follows. Compute inventory and cost of Determine effects of inventory errors. (SO 5) E6-6 Zambia Company reports the following for the month of June. Delhi made two errors: (1