Exercise 3-24 Recording cost of completed goods LO P4 Prepare journal entries to record the following production activities. Transferred completed goods from the Assembly department to finished goods inventory. The goods cost $135,600. Sold $315,000 of goods on credit. Their cost is $175,000.

Answers

Answer 1
Answer:

Answer:

Sr. No                 Particulars                   Debit                 Credit

1                    Finished Goods              $135,600

                      Work In Process- Assembly department      $135,600  

Transferred completed goods from the Assembly department to finished goods inventory. The goods cost $135,600.

2                      Account Receivable     $315,000

                               Sales                                             $315,000

                         Cost Of Goods Sold   $ 175,000

                          Merchandise Inventory                    $ 175,000

Sold $315,000 of goods on credit. Their cost is $175,000.

Answer 2
Answer:

Final answer:

This answer explains how to record the journal entries for the transfer of completed goods, sale of goods on credit, and cost of goods sold.

Explanation:

To record the transfer of completed goods from the Assembly department to finished goods inventory, you would debit Finished Goods Inventory and credit Work in Process Inventory. The journal entry would be:

Finished Goods Inventory: $135,600
Work in Process Inventory: $135,600

To record the sale of goods on credit, you would debit Accounts Receivable and credit Sales Revenue. The journal entry would be:

Accounts Receivable: $315,000
Sales Revenue: $315,000

To record the cost of goods sold, you would debit Cost of Goods Sold and credit Finished Goods Inventory. The journal entry would be:

Cost of Goods Sold: $175,000
Finished Goods Inventory: $175,000

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The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the restaurant operates will increase by 20% at the beginning of the year. Her current prices are competitive with nearby restaurants of similar quality. However, she is now considering raising her prices by 20 percent to offset the increase in her monthly rent. Would you recommend that she raise prices?

Answers

Answer:

No

Explanation:

In a competitive market, price should be a function of variable/marginal costs not fixed costs.

What is the most appropriate decision on a product line when a company decides to lengthen its product line beyond its current range

Answers

Answer:

Line Stretching

Explanation:

A company normally makes an up-market stretch to obtain higher profit margins, achieve market growth, or position itself as a complete producer.

Lyme Home has 5,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 7.65 percent. Interest is paid semiannually. What is the amount of the annual tax shield on debt if the tax rate is 23 percent

Answers

if the tax rate is 23%, the amount of the annual tax shield on debt will be $87,975.

Total Interest = Total Bonds * Face Value * Coupon Rate

Total Interest = (5,000 bonds*$ 1,000) * 7.65%

Total Interest = $5,000,000 * 7.65%

Total Interest = $ 382,500

Annual Tax Shield =Total Interest * Tax Rate

Annual Tax Shield = $382,500*23%

Annual Tax Shield = $87,975

In conclusion, if the tax rate is 23%, the amount of the annual tax shield on debt is $87,975.

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Labuk is a 20-year employee of Whirley Corporation. During his career with Whirley, Labuk has felt uncomfortable with his supervisor, Bob, because of his behavior. On one occasion, Bob told him that foreigners should stop seeking jobs in the United States if they cannot perform. On another occasion, Bob yelled at Labuk and called him an "idiot." Which of the following may be true in this case? a. Labuk does not have a harassment claim based on national origin because these two incidents, although offensive, do not create a hostile work environment.
b. Labuk does not have a harassment claim based on national origin because the Fair Labor Standards Act (FLSA) allows employers to discriminate in favor of U.S. citizens.
c. Labuk has a harassment claim based on national origin because Title VII of the Civil Rights Act of 1964 provides protection against discrimination based on country of citizenship.
d. Labuk has a harassment claim based on national origin under Title VII of the Civil Rights Act of 1964 because he belongs to a protected racial class.

Answers

Answer:

a. Labuk does not have a harassment claim based on national origin because these two incidents, although offensive, do not create a hostile work environment.

Explanation:

In order for Labuk to have a valid harassment claim, his supervisor must have created an offensive and hostile work environment. Apparently, the supervisor's bad attitude is not shared by Labuk's colleagues, at least it doesn't say so in the question.

The supervisor's attitude might not have been appropriate, but two incidents in 20 years is something can happen to anyone and not just Labuk. Imagine how many times an employee might argue or have some type of dispute with a supervisor during 20 years. Labuk should have reported both incidents to a company's manager.

Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1,550,000 each quarter. The total contract price is $18,600,000 and Seasons estimates total costs of $17,750,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2018. 18). Seasons Construction completes the remaining 25% of the building construction on December 31, 2020, as scheduled. At that time the total costs of construction are $18,750,000.What is the total amount of Revenue from Long-Term Contracts and Construction Expenses that Seasons will recognize for the year ended December 31, 2020?


Revenue Expenses

(A) $18,600,000 $18,750,000

(B) $4,650,000 $ 4,687,500

(C) $4,650,000 $ 5,250,000

(D) $4,687,500 $ 4,687,500

Answers

Answer:

(C) $4,650,000 $ 5,250,000

Explanation:

total contract price is $ 18,600,000

season construction using percentage of completion method.

Amount of revenue & construction expense for the year ended december 31, 2020 will be

25% of $ 18,600,000 revenue = $ 4,650,000

25% of $ 18,750,000 total cost = $5,250,000

Private saving refers to ________. A) disposable income minus consumption expenditure B) total expenditure minus purchases of capital goods C) taxes plus consumption minus income D) consumption expenditure divided by disposable income E) none of the above

Answers

Answer:

disposable income minus consumption expenditure

Explanation: