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18 Apr 2019

James Company began the month of October with inventory of$22,000. The following inventory transactions occurred during themonth: a. The company purchased merchandise on account for $32,500on October 12, 2016. Terms of the purchase were 2/10, n/30. Jamesuses the net method to record purchases. The merchandise wasshipped f.o.b. shipping point and freight charges of $570 were paidin cash. b. On October 31, James paid for the merchandise purchasedon October 12. c. During October merchandise costing $19,050 wassold on account for $29,400. d. It was determined that inventory onhand at the end of October cost $35,370. Required: 1. Assuming thatthe James Company uses a periodic inventory system, prepare journalentries for the above transactions including the adjusting entry atthe end of October to record cost of goods sold. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field.) 2. Assuming that the JamesCompany uses a perpetual inventory system, prepare journal entriesfor the above transactions. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.)

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19 Apr 2019

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Pittsburgh Aluminum Company uses a process cost system to recordthe costs of manufacturing rolled aluminum, which consists of thesmelting and rolling processes. Materials are entered from smeltingat the beginning of the rolling process. The inventory of Work inProcess—Rolling on September 1 and debits to the account duringSeptember were as follows:

Bal., 1,000 units, 30% completed:

Direct materials (1,000 x $5) $ 5,000

Conversion (1,000 x 30% x $2.1) 630

$ 5,630

From Smelting Department, 24,000 units $122,400

Direct labor 34,978

Factory overhead 18,834

During September, 1,000 units in process on September 1 werecompleted, and of the 24,000 units entering the department, allwere completed except 2,400 units that were 90% completed. Chargesto Work in Process—Rolling for October were as follows:

From Smelting Department, 27,600 units $146,280

Direct labor 40,840

Factory overhead 21,996

During October, the units in process at the beginning of themonth were completed, and of the 27,600 units entering thedepartment, all were completed except 1,300 units that were 60%completed.

Required:

1. Enter the balance as of September 1 in a four-column accountfor Work in Process—Rolling. Record the debits and the credits inthe account for September. Construct a cost of production reportand present computations for determining (a) equivalent units ofproduction for materials and conversion, (b) costs per equivalentunit, (c) cost of goods finished, differentiating between unitsstarted in the prior period and units started and finished inSeptember, and (d) work in process inventory. If an amount box doesnot require an entry, leave it blank.

ACCOUNT

Work in Process-Rolling Department

ACCOUNT NO.

BALANCE

DATE

ITEM

POST. REF.

DEBIT

CREDIT

DEBIT

CREDIT

Sept. 1 Bal., 1,000 units, 30% completed

Sept. 30 Smelting Dept., 24,000 units at $5.1

Sept. 30 Direct labor

Sept. 30 Factory overhead

Sept. 30 Finished goods

Sept. 30 Bal., 2,400 units, 90% completed

If an amount is zero, enter in a zero "0". Round cost per unitanswers to the nearest cent.

Pittsburgh Aluminum Company

Cost of Production Report-Rolling Department

For the Month Ended September 30

Whole Units

Equivalent Units

Units

Direct Materials (a)

Conversion (a)

Units charged to production:

Inventory in process, September 1

Received from Smelting Department

Total units accounted for by the Rolling Department

Units to be assigned costs:

Inventory in process, September 1

Started and completed in September

Transferred to finished goods in September

Inventory in process, September 30

Total units to be assigned costs

Costs

Costs

Direct Materials

Conversion

Total Costs

Cost per equivalent unit:

Total costs for September in Rolling Department $ $

Total equivalent units

Cost per equivalent unit (b) $ $

Costs assigned to production:

Inventory in process, September 1 $

Costs incurred in September

Total costs accounted for by the Rolling Department $

Costs allocated to completed and partially completed units:

Inventory in process, September 1 balance (c) $

To complete inventory in process, September 1 (c) $ $

Cost of completed September 1 work in process $

Started and completed in September (c) $

Transferred to finished goods in September (c) $

Inventory in process, September 30 (d)

Total costs assigned by the Rolling Department $

2. Provide the same information for October by recording theOctober transactions in the four-column work in process account.Construct a cost of production report, and present the Octobercomputations (a through d) listed in part (1). If an amount boxdoes not require an entry, leave it blank.

ACCOUNT

Work in Process-Rolling Department

ACCOUNT NO.

Balance

DATE

ITEM

POST. REF.

DEBIT

CREDIT

DEBIT

CREDIT

October 1 Balance

October 31 Smelting Dept., 27,600 units at $5.3

October 31 Direct labor

October 31 Factory overhead

October 31 Finished goods

October 31 Bal., 1,300 units, 60% completed

If an amount is zero, enter in a zero "0". Round cost per unitanswers to the nearest cent.

Pittsburgh Aluminum Company

Cost of Production Report-Rolling Department

For the Month Ended October 31

Whole Units

Equivalent Units

Units

Direct Materials (a)

Conversion (a)

Units charged to production:

Inventory in process, October 1

Received from Smelting Department

Total units accounted for by the Rolling Department

Units to be assigned costs:

Inventory in process, October 1

Started and completed in October

Transferred to finished goods in October

Inventory in process, October 31

Total units to be assigned costs

Costs

Costs

Direct Materials

Conversion

Total Costs

Cost per equivalent unit:

Total costs for October in Rolling Department $ $

Total equivalent units

Cost per equivalent unit (b) $ $

Costs assigned to production:

Inventory in process, October 1 $

Costs incurred in October

Total costs accounted for by the Rolling Department $

Costs allocated to completed and partially completed units:

Inventory in process, October 1 balance (c) $

To complete inventory in process, October 1 (c) $ $

Cost of completed October 1 work in process $

Started and completed in October (c)

Transferred to finished goods in October (c) $

Inventory in process, October 31 (d)

Total costs assigned by the Rolling Department $

3. The cost per equivalent unit for directmaterials

from August to October. The cost per equivalent unit forconversion costs

from August to October. These changes

be investigated for their underlying causes, and any necessarycorrective actions should be taken.

The Polaris Company uses a job-order costing system. Thefollowing transactions occurred in October:

Raw materials purchased on account, $210,000.

Raw materials used in production, $190,000 ($152,000 directmaterials and $38,000 indirect materials).

Accrued direct labor cost of $48,000 and indirect labor cost of$21,000.

Depreciation recorded on factory equipment, $105,000.

Other manufacturing overhead costs accrued during October,$130,000.

The company applies manufacturing overhead cost to productionusing a predetermined rate of $5 per machine-hour. A total of76,100 machine-hours were used in October.

Jobs costing $511,000 according to their job cost sheets werecompleted during October and transferred to Finished Goods.

Jobs that had cost $449,000 to complete according to their jobcost sheets were shipped to customers during the month. These jobswere sold on account at 30% above cost.

Required:

1. Prepare journal entries to record the transactions givenabove.

2. Prepare T-accounts for Manufacturing Overhead and Work inProcess. Post the relevant transactions from above to each account.Compute the ending balance in each account, assuming that Work inProcess has a beginning balance of $34,000.

Raw materials purchased on account, $210,000.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
a.

Record the raw materials issued to production, $190,000($152,000 direct materials and $38,000 indirect materials).

Note: Enter debits before credits.

Transaction General Journal Debit Credit
b.

Record the entry for accrued direct labor cost incurred,$48,000; indirect labor cost incurred, $21,000.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
c.

Depreciation recorded on factory equipment, $105,000.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
d.

Other manufacturing overhead costs accrued during October,$130,000.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
e.

The company applies manufacturing overhead cost to production onthe basis of $5 per machine-hour. A total of 76,100 machine-hourswere recorded for October.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
f.

Jobs costing $511,000 according to their job cost sheets werecompleted during October and transferred to Finished Goods.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
g.

Record the cost of goods sold.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
h(1).

Record the sales on account.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
h(2).

Prepare T-accounts for Manufacturing Overhead and Work inProcess. Post the relevant transactions from above to each account.Compute the ending balance in each account, assuming that Work inProcess has a beginning balance of $34,000.

Manufacturing Overhead Work inProcess
Beg.Bal.
End.Bal.
End. Bal.

Should be easy, answer question and give ashort explanation

I give 1 star if you just guess


Using the following transactions, calculatethe net income.

1. Bill Co. paid $3,700 for one month rent
2. Bill Co. paid $2,900 for two weeks wages
3. Bill Co. performed $6,900 in consulting services onaccount
4. Bill Co billed a customer $3,200 for servicesperformed
5. Bill Co. received $6,900 in payment for item 3
6. Bill Co performed services and immediately collected$3,700
7. Bill Co. paid $670 for advertising in the local paper

$20,700
$13,430
$13,800
$6,530
$10,230


On August 1, Olivera Company soldmerchandise in the amount of $4,600 to Wyne, with credit terms of3/10, n/30. The cost of the items sold is $3,700. Olivera uses theperpetual inventory system. On August 4, Wyne returns some of themerchandise. The selling price of the merchandise is $460 and thecost of the merchandise returned is $370.The entry or entries thatOlivera must make on August 4 is:
Sales returns andallowances 370
Accounts receivable 370
Sales returns andallowances 460
Accounts receivable 460
Accounts receivable 460
Sales returns and allowances 460
Sales returns andallowances 460
Accounts receivable 460
Merchandise inventory 370
Cost of goods sold 370
Accounts receivable 460
Sales returns and allowances 460
Cost of goods sold 370
Merchandise inventory 370
For the year ended December 31, 2010, Mason Company has implementedan employee bonus program equal to 7% of Mason's net income, whichemployees will share equally. Mason's net income (pre-bonus) isexpected to be $2,500,000, and bonus expense is deducted incomputing net income. What is the amount that needs to be recordedfor estimated bonus liability for 2010?
$115,000
$40,000
$163,551
$48,697
$175,000

A parcel of land is offered for sale at $151,000, is assessed fortax purposes at $113,000, is recognized by its purchasers as beingworth $141,000, and is purchased for $138,000. The land should berecorded in the purchaser's books at:
$144,000.
$113,000.
$138,000.
$141,000.
$151,000.


A company had cash sales of $49,563, credit sales of $38,576, salesreturns and allowances of $7,118 and sales discounts of $4,393. Thecompany's net sales for this period equal:
$76,628
$99,650
$83,746
$81,021
$88,139

At the end of the day, the cashregister's record shows $1,300, but the count of cash in the cashregister is $1,120. The correct entry to record the cash sales forthe day is:
Cash 180
Sales 180
Cash 1,120
Sales 1,120
Cash 1,300
Sales 1,300
Cash 1,120
Cash over and short 180
Sales 1,300
Cash 1,300
Sales 1,120
Cash over and short 180
A machine originally had an estimated useful life of 7 years, butafter 2 complete years, it was decided that the original estimateof useful life should have been 9 years. At that point theremaining cost to be depreciated should be allocated over theremaining:
11 years
13 years
9 years
7 years
4 years

What would be the account balance in the revenue ledger accountafter the following transactions?

Performed services and lefta bill $5,000
Performed services andcollected immediately $3,900
Performed services andbilled customer $2,600
Performed services onaccounts $6,800
Received partial payment onaccount $1,900
$18,300 Credit
$16,400 Debit
$18,300 Debit
$20,200 Credit
$16,400 Credit


A company sells leaf blowers for $150each. Each unit has a 3 year warranty that covers replacement ofdefective parts. It is estimated that 6% of all leaf blowers soldwill be returned under the warranty at an average cost of $15 each.During October, the company sold 300,000 leaf blowers. 600 leafblowers were serviced under the warranty during October at a totalcost of $30,000. The balance in the Estimated Warranty Liabilityaccount on October 1 was $15,000. What is the company's warrantyexpense for the month of October?
$259,750.
$270,000.
$30,000.
$300,000.
$265,000.

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