BUSINESS COLLEGE

Assuming the cost of direct materials used is $1,500,000, compute the total manufacturing costs using the information below. Raw materials inventory, January1 $ 30,000 Raw materials inventory, December 31 60,000 Work in process, January 1 27,000 Work in process, December 31 18,000 Finished goods, January 1 60,000 Finished goods, December 31 48,000 Raw materials purchases 1,500,000 Direct labor 690,000 Factory utilities 225,000 Indirect labor 75,000 Factory depreciation 500,000 Operating expenses 630,000.

Answers

Answer 1

Answer:

Answer:

$2,960,000

Explanation:

Raw Material Used in production:

= Raw Material Inventory Beginning + Purchases of Raw Material - Raw Material Inventory Ending

= $30,000 + $1,500,000 - $60,000

= $1,470,000

Total Manufacturing Cost:

= Raw Material Used in production + Direct Labor + Manufacturing Overhead applied to Work in process

= $1,470,000 + $690,000 + (225,000 + 75,000 + 500,000)

= $1,470,000 + $690,000 + $800,000

= $2,960,000

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Elie Company purchased a building with a market value of $ 295 comma 000 and land with a market value of $ 45 comma 000 on January 1, 2018. Elie Company paid $ 40 comma 000 cash and signed a 20-year, 6% mortgage payable for the balance. Requirements:

1. JournalizetheJanuary1,2018,purchase.

2. Journalize the first monthly payment of $3,370 on January 31, 2018. (Round to the nearest dollar.)

Answers

Answer:

1)Jan 1

Dr Building $295,000

Dr Land $45,000

Cr Mortgages Payable 300,000

Cr Cash $40,000

Jan. 31

Dr Mortgages Payable $1870

Dr Interest Expense $1,500

Cr Cash3,370

Explanation:

1) Journal entries

Jan. 1

Dr Building $295,000

Dr Land $45,000

Cr Mortgages Payable 300,000

($295,000+$45,000=$340,000-$40,000

=$300,000)

Cr Cash $40,000

Purchased building and land with mortgages payable and cash payment.

Jan. 31

Dr Mortgages Payable ($3,370 − $1,500) $1870

Dr Interest Expense (300,000 × 0.06 × 1/12)$1,500

Cr Cash3,370

Paid principal and interest payment

If coal mine tonnage can be shipped elsewhere cheaply, but a coal-fired power plant adjacent to the mining operation is not redeployable to other uses, what organizational form would be adopted by the power plant owners?

Answers

Answer:

vertical integration

Explanation:

The plant owners would have to adopt a vertically integrated organization because the plant is not redeployable to other uses and is dependent on the supply chain/complementary assets. Vertical integration occurs when an organization owns and controls it's distribution or supply chain in order to maximise profits and reduce costs or inefficiency. By controlling the supply chain, the chain of distribution of the coal mine tonnage can be improved in terms of efficiency and value in revenue.

A produce distributor uses 773 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an annual carrying cost of 33 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ?

Answers

$\sqrt(2*773*28)/(33)$ Answer:

Explanation:

Using the EOQ Formula = EOQ $\sqrt(2*D*O)/(H)$

D = Demand = 773

O = Ordering Cost =28

H = holding Cost = 11*33% =3.63

So we have :

EOQ= $\sqrt(2*D*O)/(H)$

EOQ= $\sqrt(2*773*28)/(3.63)$

EOQ= $\sqrt(43288\n)/(3.63)$

EOQ= $√(11925.06887)$

EOQ= 109.20196

Previous per unit order cost = 28/773 =0.03622

No of Orders = D/o

No of Orders = 773/109.20196 =7.0786

Cost per order =109.20196*0.03622 =3.9555

Total order cost= 7.0786*3.9555=27.9998

At EOQ holding Cost is equal to Order Cost

New Order cost =27.9998

Holding Cost = 27.9998

New cost As per EOQ = 56

Previous (33+28) = 61

Net Saving = 5

When using project management software, estimates of work time should be entered only at the work package level; the rest of the WBS items are just groupings or _____ tasks.

Answers

Answer:Summary task

Explanation:

If the beginning raw materials inventory balance is $50 and the ending raw materials inventory balance is $500 and the amount of raw materials placed into production $400.....what are the Net Purchases for the period

Answers

The net purchase for the period will be $850.

Amount of raw material placed into production) = Opening inventory + Net purchase - Ending inventory

$400 = $50 + Net purchase - $400

Net purchase = $850

In conclusion, the net purchase for the period will be $850.

Answers

Answer:

1. Dr Wages expense $450

Cr Wages payable $450

2.Dr Wages expense $1350

Dr Wages payable $450

Cr Cash $1800

Explanation:

1. Preparation of the year-end adjusting entry for wages expenses.

Dec 31

Dr Wages expense $450

Cr Wages payable $450

( 5 employees * $90 per day)

(To record wages expenses)

2. Preparation of the journal entry to record payment of the employees' wages on Friday, January 4, 2018

Jan 4

Dr Wages expense $1350

(3 days*5 employees*$90=$1350)

Dr Wages payable $450

(5 employees * $90 per day)

Cr Cash $1800

($1350+$450 =$1800)

(To record payment of the employees' wages)

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