BUSINESS COLLEGE

Portside Watercraft uses a job order costing system. During one month Portside purchased $153,000 of raw materials on credit; issued materials to production of $164,000 of which $24,000 were indirect. Portside incurred a factory payroll of $95,000, of which $25,000 was indirect labor. Portside uses a predetermined overhead rate of 170% of direct labor cost. The journal entry to record the application of factory overhead to production is:

Answers

Answer 1

Answer:

Answer:

Payroll = $95,000,

Indirect labor = $25000

Direct labor paid = $95000 - $25000 = $70000

∵ predetermined overhead application rate is 170 % of direct labor cost

Overhead applied to work in process = 70000 × 170 %

= $119,000

Journal entry:

Debit ⇒ Work in process = $1190000

Credit ⇒ Factory Overheads = $119000

Answer 2

Answer:

Final answer:

To record the application of factory overhead to production, you first calculate the direct labor cost, then multiply by the predetermined overhead rate. The journal entry is a debit to Work in Process and a credit to Factory Overhead for this calculated amount.

Explanation:

The Portside Watercraft company is using a job order costing system and a predetermined overhead rate based on direct labor cost. In this case, to record the application of factory overhead to production, you would first calculate the factory overhead applied by multiplying the direct labor cost (total labor cost minus indirect labor cost) by the predetermined rate.

The direct labor cost would be calculated by subtraction: $95,000 (total factory payroll) - $25,000 (indirect labor) = $70,000. Then multiply $70,000 by 170% (the predetermined overhead rate) to get $119,000. The journal entry would then be a debit to Work in Process for $119,000 and a credit to Factory Overhead for $119,000.

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Related Questions

Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 21% per year - during Years 4 and 5, but after Year 5, growth should be a constant 8% per year. 1. If the required return on Computech is 18%, what is the value of the stock today?
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Discuss the different types of competitive pressures that firms competing in a global marketplace face. How can firms respond to such pressures?

Answers

Explanation:

There are several types of competitive pressures that companies that compete in a global market face, we can mention as more relevant the number of companies that are in the market offering similar products, which means that there may be barriers for new entrants, and make companies need to significantly lower their unit costs and achieve economies of scale to keep their products / services at competitive prices.

In the global market there is also the pressure of socio-environmental responsibility that a company has in the locality in which it is operating, which makes it necessary to adapt the strategies and marketing of the company's operations, products and services to meet the legal and regulatory requirements. meet the demands of consumers according to their wishes and preferences to meet their needs and remain competitive and well positioned in the global market.

Aragon Company has just received the August 21, 2010 bank statement, which is summarized below. County National Bank Disbursements Receipts Balance

Balance, August 1 $9,369

Deposits during August $32,200 41,569

Note Collected for depositor, including $40 interest 1,040 42,609

Checks cleared during August $34,500 8,109

Bank Service Charges 20 8,089

Balance, August 31 8,089

The general ledger Cash account contained the following entries for the month of August.

Cash

Balance, August 1 10,050 Disbursements for August 35,403

Receipts during August 35,000

Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,550. Cash on hand at August 31 is $310. The bookkeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of August.

Instrustions:

a. Preare a bank reconciliation dated August 31, 2010, proceeding to a correct balance.

b. Prepare any entries necessary to make the books correct and complete.

c. What amount of chas should be reported in the August 31 balance sheet?

Answers

a. The preparation of the bank reconciliation is shown below.

b. The entries are given below.

c. The amount of cash should be $10,649.

Preparation, journal entries:

a. The preparation of the bank reconciliation is presented below.

Bank balance as per bank statement $8,089

Add: cash on hand $310

Add: deposit in transit $3.800

Less: outstanding checks $1,550

Adjusted balance $10,649

Balance as per cash book ($10,050 + $35,000 - $35,403) $9,647

Less: correction ($164.5 - $146.5) $18

Less: bank service charge $20

Add: note collected $1,040

Adjusted balance $10,649

b. The journal entries:

Cash $1,040

Note receivable $1000

Interest receivable $40

(Being collection od note & interest)

Bank charges $20

cash $20

(being bank charges are recorded)

Supplies expense $18

cash $18

(Being error in recording check)

c. The amount of cash should be $10,649.

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Answer:

Complete solution in tabular form is given below for better understanding and demonstration.

In our newly networked world, reading is:A. the taking in of words.
B. a comment
c. a conversation,
D. only about producing words.

Answers

Answer:c

Explanation:

Wilson, Inc., has a current stock price of $46.00. For the past year, the company had net income of $6,800,000, total equity of $21,690,000, sales of $40,100,000, and 5.2 million shares of stock outstanding.1. What are eamings per share (EPS)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.)
2. What is the price-eamings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

1. What are eamings per share (EPS)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.)

Answer: $ 1.31 / share

2. What is the price-eamings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer: 35.11

Explanation:

Earning Per Share (EPS) = Net Income - Preferred dividends / Outstanding Number of Share

Earning Per Share (EPS) = $6,800,000 - 0 / 5,200,000 shares

Earning Per Share (EPS) = $6,800,000 / 5,200,000 shares

Earning Per Share (EPS) = $1.31 / share

Price earning ratio = Share price / Earning per share

Price earning ratio = $46 per share / $1.31 per share

Price earning ratio = $46 / $1.31

Price earning ratio = 35.11

Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $1,567,500. The estimated residual value was $82,500. Assume that the estimated useful life was five years and the estimated productive life of the machine was 300,000 units. Actual annual production was as follows: Year Units 1 70,000 2 67,000 3 50,000 4 73,000 5 40,000 Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance.

Answers

Final answer:

The question seeks the computed depreciation for a machine for 5 years under three methods: straight-line, units-of-production, and double-declining balance. The computations were conducted using the provided data.

Explanation:

To answer this question, we first need to understand the terms constant that would be used throughout the computation: Machine cost, residual value, useful life, and productive life. In this scenario, the calculation would be as follows:

Straight-line method: Depreciation per year = (Cost - Residual value) / Useful life. So, ($1,567,500 - $82,500) / 5 = $297,000. Your depreciation expense is $297,000 per year for 5 years.
Units-of-production method: Depreciation per unit = (Cost - Residual value) / Productive life. Our depreciation per unit is ($1,567,500 - $82,500) / 300,000 = $4.95. To get yearly depreciation, this needs to be multiplied by the number of units produced each year.
Double-declining-balance method: Depreciation = 2 * Straight-line rate * Remaining book value. The first year’s depreciation would be 2/5 * (Machine cost - accumulated depreciation), and for the following years, subtract the previous year's depreciation from the machine cost.

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Final answer:

Straight-line depreciation distributes the cost equally across the useful lifespan. The units-of-production method bases depreciation on the amount of production output. The double-declining balance method is an accelerated depreciation method that doubles the straight-line rate and uses the remaining book value for its calculations.

Explanation:

The cost of the machine is $1,567,500, and the residual value at the end of five years would be $82,500. Hence, the depreciable amount would be ($1,567,500 - $82,500) = $1,485,000.

For each of the desired methods, the depreciation schedules would be as follows:

Straight-line Method: This method would equally spread the depreciable amount over the useful life of the asset. Each year, the company would depreciate ($1,485,000/5) = $297,000.
Units-of-Production Method: This method bases the depreciation on the number of units produced. The depreciation rate per unit is calculated as ($1,485,000/300,000) = $4.95/unit. So, for each year, we need to multiply the rate by the units produced to obtain the annual depreciation.
Double-Declining-Balance Method: For this method, we first calculate the straight-line depreciation rate, which in this case is (1/5 = 20%). We double that rate to get the accelerated depreciation rate of 40%. Each year, we multiply this rate by the book value at the beginning of the year to get the annual depreciation. However, in the final year, this method ensures that the residual value is observed.

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Mixed Costs and Cost Formula Ben Palman owns an art gallery. He accepts paintings and sculpture on consignment and then receives 20% of the price of each piece as his fee. Space is limited, and there are costs involved, so Ben is careful about accepting artists. When he does accept one, he arranges for an opening show (usually for 3 hours on a weekend night) and sends out invitations to his customer list. At the opening, he serves wine, soft drinks, and appetizers to create a comfortable environment for prospective customers to view the new works and to chat with the artist. On average, each opening costs $600. Ben has given as many as 20 opening shows in a year. The total cost of running the gallery, including rent, furniture and fixtures, utilities, and a part-time assistant, amounts to $120,000 per year.Required:1. Assume that the cost driver is number of opening shows. Develop the cost formula for the gallery's costs for a year.
2. Using the cost formula developed above, what is the total cost for Ben in a year with 12 opening shows?
$
Using the cost formula developed above, what is the total cost for Ben in a year with 14 opening shows?
$

Answers

Answer:

$136,200 is the total costs for 14 opening shows

Explanation:

See attached file

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