ACC 211 Lecture Notes - Lecture 8: Perpetual Inventory, Accounts Receivable, European Cooperation In Science And Technology
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17 accounting 1 questions! HELP
9. The following amounts and costs of platters were availablefor sale by Corpus Christy Ceramics during 2016:
Beginning inventory | 10 units at $41 |
First purchase | 15 units at $55 |
Second purchase | 30 units at $70 |
Third purchase | 25 units at $65 |
Corpus Christy Ceramics has 35 platters on hand at the end ofthe year.
What is the dollar amount of inventory at the end of the yearaccording to the weighted-average cost method?
Select one:
A. $4,340
B. $9,920
C. $3,465
D. $6,200
32. Santa Fe Corporation uses the perpetual inventory method. OnMarch 1, it purchased $60,000 of merchandise inventory, terms 2/10,n/30. On March 3, Santa Fe returned goods (not damaged) that cost$6,000. On March 9, Santa Fe paid the supplier.
On March 9, Santa Fe should credit:
Select one:
A. Purchase discounts for $1,200
B. Purchase discounts for $1,080
C. Inventory for $1,080
D. Inventory for $1,200
33. Rocky Company has beginning equity of $600,000, net incomeof $100,000, dividends of $60,000 and investments by owners inexchange for stock of $20,000. Its ending equity is:
Select one:
A. $660,000
B. $480,000
C. $536,000
D. $446,000
35. On September 1, 2016, Chopper, Inc. reported RetainedEarnings of $272,000. During the month of September, Choppergenerated revenues of $40,000, incurred expenses of $24,000,purchased equipment for $10,000 and paid dividends of $12,000.
What is the balance in Retained Earnings on September 30,2016?
Select one:
A. $272,000 debit
B. $276,000 credit
C. $ 16,000 credit
D. $274,000 credit
36. Savannah Company purchases $120,000 of inventory during theperiod and sells $36,000 of it for $60,000. Beginning of the periodinventory was $6,000.
What is the companyâs inventory balance to be reported on itsbalance sheet at year end?
Select one:
A. $36,000
B. $90,000
C. $ 4,000
D. $ 6,000
37. Assuming rising prices, which method will give the highestdollar value for cost of goods sold on the income statement?
Select one:
A. FIFO
B. Average Cost
C. LIFO
D. All of these give equal values for cost of goods sold
38. Kali Company began the period with $20,000 in inventory. Thecompany also purchased an additional $20,000 of inventory andreturned $2,000 for a full credit. A physical count of theinventory at yearâend revealed an inventory on hand of $16,000.What was Kaliâs cost of goods sold for the period?
Select one:
a. $50,000
b. $22,000
c. $48,000
d. $16,000
39. The periodic inventory system differs from the perpetualinventory system:
Select one:
because the periodic system is not compatible with moderntechnology.
because the periodic system continually updates inventory, whilethe perpetual inventory system only updates inventory at the end ofthe period.
because the perpetual system continually updates inventory,while the periodic inventory system only updates inventory at theend of the period.
because the periodic system is more complex and costly.
40. Which one of the following is included in currentassets?
Select one:
A. Common stock
B. Accounts receivable
C. Taxes payable
D. Automobiles
41. For the balance sheet to be in balance, the following mustexist:
Select one:
Total assets must be less than total liabilities
Total assets must be greater than total liabilities
Total assets must equal total liabilities plus stockholders'equity
Total liabilities must equal total stockholders' equity
43. Using a perpetual inventory system, the buyerâs journalentry to record the freight costs includes a:
Select one:
A. Debit to Purchases
B. Debit to Inventory
C. Debit to Freight In
D. Debit to Cost of Goods Sold
44. Joshua records purchases at invoice price and uses theperpetual inventory system. On July 5, Joshua returned $6,000 ofgoods purchased on account to the seller.
How would Joshua record this transaction?
Select one:
A.
Accounts Payable | 6,000 | ||
Purchases | 6,000 | ||
B.
Accounts Receivable | 6,000 | ||
Inventory | 6,000 | ||
C.
Accounts Payable | 6,000 | ||
Inventory | 6,000 | ||
D.
Cash | 6,000 | ||
Purchases | 6,000 | ||
45. Smith & Sons purchased $5,000 of merchandise from theClaremont Company with terms of 3/10, n/30. How much discount isSmith & Sons entitled to take if it pays within the alloweddiscount period of 10 days?
Select one:
$100
$50
$300
$150
46. The accounting record for Max III Company reported thefollowing selected information:
Operating Expenses | $180,000 |
Sales Returns and Allowances | 52,000 |
Sales Discounts | 24,000 |
Sales Revenue | 700,000 |
Cost of Goods Sold | 268,000 |
Determine Max III Company's gross profit.
Select one:
A. $332,000
B. $280,000
C. $308,000
D. $356,000
48. Using a a perpetual inventory system, the sellerâs journalentry to record the payment for merchandise, received from thebuyer, within the discount period includes a:
Select one:
A. Debit to Accounts Receivable
B. Debit to Cost of Goods Sold
C. Credit to Sales Discounts
D. Debit to Sales Discounts
49.Geraldoâs Groceries purchased milk cartons at an invoiceprice of $6,000 and terms of 2/10, n/30. On arrival of the goods,Geraldoâs realized that half of the milk was past the expirationdate, and returned them immediately to the supplier.
If Geraldoâs pays the remaining amount of the invoice within thediscount period, the amount paid should be:
Select one:
A. $2,880
B. $5,880
C. $2,940
D. $6,000
50. Which one of the following is not a current liability?
Select one:
A. Wages payable
B. Accounts payable
C. Wage expense
D. Taxes payable
Requirement 2:
The company has just hired a new marketing manager who insiststhat unit sales can be dramatically increased by dropping theselling price from $8 to $7. The marketing manager would like touse the following projections in the budget:
Check your worksheet by changing the budgeted unit sales inQuarter 2 of Year 2 in cell C5 to 75,000 units. The total expectedcash collections for the year should now be $2,085,000. If you donot get this answer, find the errors in your worksheet and correctthem.
Data | Year 2 Quarter | Year 3 Quarter | ||||
1 | 2 | 3 | 4 | 1 | 2 | |
Budgeted unitsales | 50,000 | 70,000 | 115,000 | 60,000 | 80,000 | 95,000 |
Selling price perunit | $7 | per unit | ||||
A | B | C | D | E | F | F | |
1 | Chapter 9: Applying Excel | ||||||
2 | |||||||
3 | Data | Year 2 Quarter | Year 3 Quarter | ||||
4 | 1 | 2 | 3 | 4 | 1 | 2 | |
5 | Budgeted unit sales | 50,000 | 70,000 | 115,000 | 60,000 | 80,000 | 95,000 |
6 | |||||||
7 | ⢠Selling price per unit | $7 | per unit | ||||
8 | ⢠Accounts receivable, beginning balance | $65,000 | |||||
9 | ⢠Sales collected in the quarter sales are made | 75% | |||||
10 | ⢠Sales collected in the quarter after sales are made | 25% | |||||
11 | ⢠Desired ending finished goods inventory is | 30% | of the budgeted unit sales of the next quarter | ||||
12 | ⢠Finished goods inventory, beginning | 12,000 | units | ||||
13 | ⢠Raw materials required to produce one unit | 5 | pounds | ||||
14 | ⢠Desired ending inventory of raw materials is | 10% | of the next quarter's production needs | ||||
15 | ⢠Raw materials inventory, beginning | 23,000 | pounds | ||||
16 | ⢠Raw material costs | $0.80 | per pound | ||||
17 | ⢠Raw materials purchases are paid | 60% | in the quarter the purchases are made | ||||
18 | and | 40% | in the quarter following purchase | ||||
19 | ⢠Accounts payable for raw materials, beginning balance | $81,500 | |||||
20 |
c. What is the total cost of raw materials to be purchased forthe year under this revised budget?
d. What are the total expected cash disbursements for rawmaterials for the year under this revised budget?
Here is what I got... but my answers are wrong... pleasehelp
Chapter 9: ApplyingExcel | |||||||
Data | Year 2 Quarter | Year 3 Quarter | |||||
1 | 2 | 3 | 4 | 1 | 2 | ||
Budgeted unit sales | 50,000 | 70,000 | 115,000 | 60,000 | 80,000 | 95,000 | |
⢠Selling price per unit | $7 | per unit | |||||
⢠Accounts receivable, beginningbalance | $65,000 | ||||||
⢠Sales collected in the quarter salesare made | 75% | ||||||
⢠Sales collected in the quarter aftersales are made | 25% | ||||||
⢠Desired ending finished goodsinventory is | 30% | of the budgeted unit sales of the next quarter | |||||
⢠Finished goods inventory,beginning | 12,000 | units | |||||
⢠Raw materials required to produce oneunit | 5 | pounds | |||||
⢠Desired ending inventory of rawmaterials is | 10% | of the next quarter's production needs | |||||
⢠Raw materials inventory,beginning | 23,000 | pounds | |||||
⢠Raw material costs | $0.80 | per pound | |||||
⢠Raw materials purchases are paid | 60% | in the quarter the purchases are made | |||||
and | 40% | in the quarter following purchase | |||||
⢠Accounts payable for raw materials,beginning balance | $81,500 | ||||||
Enter a formula into eachof the cells marked with a ? below | |||||||
Review Problem: Budget Schedules | |||||||
Construct the sales budget | Year 2 Quarter | Year 3 Quarter | |||||
1 | 2 | 3 | 4 | 1 | 2 | ||
Budgeted unit sales | 50,000 | 70,000 | 115,000 | 60,000 | 80,000 | 95,000 | |
Selling price per unit | $7 | $7 | $7 | $7 | $7 | $7 | |
Total sales | $350,000 | $490,000 | $805,000 | $420,000 | $560,000 | $665,000 | |
Construct the schedule of expected cashcollections | Year 2 Quarter | ||||||
1 | 2 | 3 | 4 | Year | |||
Accounts receivable, beginningbalance | $ 65,000 | $ 65,000 | |||||
First-quarter sales | 262,500 | $ 87,500 | $ 350,000 | ||||
Second-quarter sales | 367,500 | $ 122,500 | $ 490,000 | ||||
Third-quarter sales | 603,750 | $ 201,250 | $ 805,000 | ||||
Fourth-quarter sales | 315,000 | $ 315,000 | |||||
Total cash collections | $ 327,500 | $ 455,000 | $ 726,250 | $ 516,250 | $ 2,025,000 | ||
Construct the production budget | Year 2 Quarter | Year 3 Quarter | |||||
1 | 2 | 3 | 4 | Year | 1 | 2 | |
Budgeted unit sales | 50,000 | 70,000 | 115,000 | 60,000 | 295,000 | 80,000 | 95,000 |
Add desired finished goodsinventory | 21,000 | 34,500 | 18,000 | 24,000 | 24,000 | 28,500 | |
Total needs | 71,000 | 104,500 | 133,000 | 84,000 | 319,000 | 108,500 | |
Less beginning inventory | 12,000 | 21,000 | 34,500 | 18,000 | 12,000 | 24,000 | |
Required production | 59,000 | 83,500 | 98,500 | 66,000 | 307,000 | 84,500 | |
Construct the raw materials purchasesbudget | Year 2 Quarter | Year 3 Quarter | |||||
1 | 2 | 3 | 4 | Year | 1 | ||
Required production (units) | 59,000 | 83,500 | 98,500 | 66,000 | 307,000 | 84,500 | |
Raw materials required to produce oneunit | 5 | 5 | 5 | 5 | 5 | 5 | |
Production needs (pounds) | 295,000 | 417,500 | 492,500 | 330,000 | 1,535,000 | 422,500 | |
Add desired ending inventory of rawmaterials (pounds) | 41,750 | 42,500 | 28,000 | 36,500 | 36,500 | ||
Total needs (pounds) | 336,750 | 460,000 | 520,500 | 366,500 | 1,571,500 | ||
Less beginning inventory of rawmaterials (pounds) | 23,000 | 41,750 | 42,500 | 28,000 | 23,000 | ||
Raw materials to be purchased | 313,750 | 418,250 | 478,000 | 338,500 | 1,548,500 | ||
Cost of raw materials per pound | $0.80 | $0.80 | $0.80 | $0.80 | $0.80 | ||
Cost of raw materials to bepurchased | $251,000 | $334,600 | $382,400 | $270,800 | $1,238,800 | ||
Construct the schedule of expected cashpayments | Year 2 Quarter | ||||||
1 | 2 | 3 | 4 | Year | |||
Accounts payable, beginningbalance | $ 81,500 | $ 81,500 | |||||
First-quarter purchases | 150,600 | $ 100,400 | 251,000 | ||||
Second-quarter purchases | 200,760 | $ 133,840 | $ 334,600 | ||||
Third-quarter purchases | 229,440 | $ 152,960 | 382,400 | ||||
Fourth-quarter purchases | 162,480 | $ 162,480 | |||||
Total cash disbursements | $ 232,100 | $ 301,160 | $ 363,280 | $ 315,440 | $ 1,211,980 | ||
Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. All of the company's manufacturing overhead costs are fixedâit does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,899,000 of fixed manufacturing overhead for an estimated allocation base of 289,900 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory.
The companyâs beginning balance sheet is as follows:
Wallis Company | ||
Balance Sheet | ||
1/1/XX | ||
(dollars in thousands) | ||
Assets | ||
Cash | $ | 850 |
Raw materials inventory | 300 | |
Finished goods inventory | 420 | |
Property, plant, and equipment, net | 10,000 | |
Total assets | $ | 11,570 |
Liabilities and Equity | ||
Retained earnings | $ | 11,570 |
Total liabilities and equity | $ | 11,570 |
The companyâs standard cost card for its only product is as follows:
Inputs | (1) Standard Quantity or Hours | (2) Standard Price or Rate | Standard Cost (1) Ã (2) | ||||
Direct materials | 2 pounds | $ | 33.00 | per pound | $ | 66.00 | |
Direct labor | 3.00 hours | $ | 15.00 | per hour | 45.00 | ||
Fixed manufacturing overhead | 3.00 hours | $ | 10.00 | per hour | 30.00 | ||
Total standard cost per unit | $ | 141.00 |
During the year Wallis completed the following transactions:
Purchased (with cash) 237,500 pounds of raw material at a price of $31.00 per pound.
Added 218,750 pounds of raw material to work in process to produce 96,500 units.
Assigned direct labor costs to work in process. The direct laborers (who were paid in cash) worked 248,000 hours at an average cost of $16.00 per hour to manufacture 96,500 units.
Applied fixed overhead to work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed to manufacture 96,500 units. Actual fixed overhead costs for the year were $2,747,500. Of this total, $1,355,000 related to items such as insurance, utilities, and salaried indirect laborers that were all paid in cash and $1,392,500 related to depreciation of equipment.
Transferred 96,500 units from work in process to finished goods.
Sold (for cash) 93,500 units to customers at a price of $170 per unit.
Transferred the standard cost associated with the 93,500 units sold from finished goods to cost of goods sold.
Paid $2,127,500 of selling and administrative expenses.
Closed all standard cost variances to cost of goods sold.
Required:
1. Compute all direct materials, direct labor, and fixed overhead variances for the year.
2. Record transactions a through i for Wallis Company.
3. Compute the ending balances for Wallis Companyâs balance sheet.
4. Prepare Wallis Companyâs income statement for the year.
Compute all direct materials, direct labor, and fixed overhead variances for the year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
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Record transactions a through i for Wallis Company.
Compute the ending balances for Wallis Companyâs balance sheet.
(Unfavorable variances and decreases in balance sheet accounts should be entered with a minus sign. Enter your dollars in thousands.)
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Prepare Wallis Companyâs income statement for the year. (Enter your dollars in thousands. Round your answers to the nearest whole dollar amount.)
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