Answer:
The Schedule of Cash Collections is below:
Cash Collection from Sales JULY AUGUST SEPTEMBER
50% from month $80,000 $75,000 $65,000
30% from previous month $42,000 $48,000 $45,000
15% from two previous months$18,000 $21,000 $24,000
$140,000 $144,000 $134,000
Explanation:
The schedule of cash collection is attached herein.
July collections are as follows:
50% of $160,000 July + 30% of $140,000 June + 15% of $120, 000 May Sales
August collections are as follows:
50% of $150,000 August + 30% of $160,000 July + 15% of $140,000 June Sales
September collections are as follows:
50% of $130,000 September + 30% of $150,000 August + 15% of $160,000 July Sales
Answer:
1. Prepare a schedule of cost of goods manufactured
schedule of cost of goods manufactured
Direct labor cost $83,000
Raw Materials $133,000
Manufacturing overhead $202,000
Add Beginning Work In Process $5,900
Less Ending Work In Process ($20,500)
cost of goods manufactured $403,400
2. Prepare a schedule of cost of goods sold
schedule of cost of goods sold
Begining Finished goods $74,000
Add cost of goods manufactured $403,400
Less Ending Finished goods ($25,100)
Add Under- Applied Overheads $22,000
cost of goods sold $473,300
3. Prepare an income statement.
Sales $658,000
Less cost of goods sold ($473,300)
Gross Profit $184,700
Less Operating Expenses
Selling expenses ($106,000)
Administrative expenses ($46,000)
Net Income $ 32,700
Explanation:
1. Prepare a schedule of cost of goods manufactured
Raw Materials Consumed in Production
Begining Raw Materials Inventory $8,800
Add Raw material purchases $135,000
Less Ending Raw Materials Inventory ($10,800)
Raw Materials Consumed in Production $133,000
schedule of cost of goods manufactured
Direct labor cost $83,000
Raw Materials $133,000
Manufacturing overhead $202,000
Add Beginning Work In Process $5,900
Less Ending Work In Process ($20,500)
cost of goods manufactured $403,400
2. Prepare a schedule of cost of goods sold
Actual manufacturing overhead costs ($224,000) > Applied Manufacturing overhead($202,000)
Under- Applied Overheads
Applied Manufacturing overhead $202,000
Actual manufacturing overhead costs $224,000
Under- Applied Overheads $22,000
schedule of cost of goods sold
Begining Finished goods $74,000
Add cost of goods manufactured $403,400
Less Ending Finished goods ($25,100)
Add Under- Applied Overheads $22,000
cost of goods sold $473,300
3. Prepare an income statement.
Sales $658,000
Less cost of goods sold ($473,300)
Gross Profit $184,700
Less Operating Expenses
Selling expenses ($106,000)
Administrative expenses ($46,000)
Net Income $ 32,700
Answer:
An employee of a company who is being paid to assist in the sale of stock options to the company's employees and receives a bonus based on sales results is referred to as an Agent. This is in accordance with Uniform Securities Act.
Explanation:
The Uniform Securities Act refers to an employee of a company who is paid to assist in the sale of stock option to the company's employees and receives a bonus based on sales results as an agent. Such an employee is required to register with the state.
Answer:
Direct Labor Rate Variance = $950
Direct Labor Efficiency Variance = $600
Total Direct Labor Spending Variance = $1,550
Explanation:
Data provided in the question:
Standard labor cost per unit = $12
Direct labor hours = 1,900
Actual Direct labor paid = $21,850
Units sold during the month = 1,950
Standard rate, SR = $12
Now,
Actual rate per unit, AR = $21,850 ÷ 1,900
= $11.5
Direct Labor Rate Variance = ( SR - AR ) × Actual hours
= ( $12 - $11.5 ) × 1900
= $950 ( Favourable )
Direct Labor Efficiency Variance = ( Standard hours - Actual hour ) × SR
= ( 1950 - 1900 ) × $12
= $600 ( favourable )
Total Direct Labor Spending Variance = Standard cost - actual cost
= ( 1950 × 12 ) - 21,850
= $1,550 (favourable )
To calculate the direct labor rate variance, multiply the standard labor rate per hour by the actual labor hours and subtract the actual labor cost. To calculate the efficiency variance, multiply the standard labor rate per unit by the difference between the actual units produced and the standard units allowed. To calculate the spending variance, multiply the standard labor rate per unit by the difference between the actual labor cost and the budgeted labor cost.
To calculate the direct labor rate variance, we multiply the standard labor rate per hour by the actual labor hours and subtract the actual labor cost. In this case, the standard labor rate per unit is $12, so the actual labor rate is $12. To calculate the efficiency variance, we multiply the standard labor rate per unit by the difference between the actual units produced and the standard units allowed. In this case, the standard units allowed is 1,900 and the actual units produced is 1,950. To calculate the spending variance, we multiply the standard labor rate per unit by the difference between the actual labor cost and the budgeted labor cost. In this case, the budgeted labor cost is $12 per hour and the actual labor cost is $21,850.
#SPJ11
Answer:
Ending Inventory $ 64,000
Explanation:
To define the final inventory of the company it's necessary to find the cost of good of the period.
As the company had a 43% of gross profit, it means that for every dollar of sales we have 0,43 dollar of Gross Profit, with this value is possible to know the total cost of the goods sold during the period, that it's the difference between Sales Revenue and Gross Profit.
Total Sales Revenue had to be the net value after returns and discounts as it's detailed.
Income Statement
Sales revenue $ 300,000
Cost of goods sold -$ 171,000
Gross Profit $ 129,000 43%
Beginning Inventory $ 60,000
Purchases $ 175,000
Cost of goods sold -$ 171,000
Ending Inventory $ 64,000
Answer:
Margin of safety in units = 590.9 units (approx. 591 units)
Explanation:
To calculate this, we have to determine the margin of safety in terms of cash/amount, then convert it to units.
The margin of safety in this case is defined as the difference between the selling price and the break even point. It can simply be explained as the profit made on selling a product, gotten after deduction cost of production.
First of all, let us calculate the total cost of production for 1,500 units;
variable cost;
1 unit = $8
∴ 1,500 units = 1500 × 8 = $12,000
Fixed cost = $8,000
Therefore total cost of production = variable cost + fixed cost
= 12,000 + 8,000 = $20,000
Next, let us calculate the selling price;
1 unit = $22
∴1,500 units = 1,500 × 22 = 33,000
safety margin in cash = Selling price - cost price = 33,000 - 20,000
= $13,000
To convert this amount to units, let us find out how many units are sold for $13,000 as follows;
$22 = 1 units
∴ $13,000 units = (1/22) × 13,000 = 590.9 units
Estimated machine-hours 8,400
Actual manufacturing overhead $ 352,960
Actual machine-hours 8,460
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
The applied manufacturing overhead for the year is closest to:_________.
A. $357,012
B. $354,474
C. $355,489
D. $352,951
Answer:
B. $354,474
Explanation:
The Overheads that are initially included in Work In Process before determination of Actual Overheads are called Applied Overheads.
Applied Overheads = Predetermined overhead rate × Actual level of Activity.
Thus said we need to first determine the Predetermined overhead rate :
Predetermined overhead rate = Budgeted Overheads / Budgeted Activity
= $ 351,960 / 8,400 machine hours
= $41.90 per machine hour
Therefore,
Applied Overheads = $41.90 × 8,460 machine hours
= $354,474
Conclusion :
The applied manufacturing overhead for the year is closest to: $354,474