Business
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $433,200; materials of $418,000 and direct labor of $228,000. During the year Adams incurred $457,200 in materials costs, $451,600 in overhead costs and $232,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year. a. $10,800 overapplied. b. $18,400 overapplied. c. $10,800 underapplied. d. $18,400 underapplied.
Kenwood Homes, Inc., allows employees to purchase, at cost, manufacturing materials, such as metal and lumber, for personal use. To purchase materials for personal use, an employee must complete a materials requisition form, which must then be approved by the employee's immediate supervisor. Cheryl Long, an assistant cost accountant, charges the employee an amount based on Kenwood's net purchase cost. Cheryl Long is in the process of replacing a deck on her home and has requisitioned lumber for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, Long reviewed all the purchase invoices for the past year. She then used the lowest price to compute the amount due the company for the lumber. Discuss whether Long behaved in an appropriate manner.
Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. Pluto Corporation owns 65% of Saturn's voting shares. On Jan 1, 20X7, Pluto Corporation purchased $120,000 face value of Saturn bonds from Star for $118,020. On the date Pluto purchased the bonds, the bonds' carrying value on Saturn's book was $126,019. The bonds pay 12 percent interest annually on December 31. The preparation of consolidated financial statements for Saturn and Pluto at December 31, 20X9, required the following consolidating entry: Based on the information given above, what amount of gain or loss on bond retirement is included in the 20X7 consolidated income statement? a. $8,000 gain b. $5,200 gain c. $8,000 loss d. $5,200 loss
The aggregate demand aggregate supply mode is quite useful tool for us to understand the economy. So far, we saw only one change at a time, however, in reality, there can be multiple shocks at the same time. The economy was in long run equilibrium. Assuming all else equal, world scientists collaborated to invent a vaccine for everyone to be safe from deadly virus, raising productivity. This makes consumers and businesses optimist about the economy. At the same time, commodity market, namely oil market is calm, maintaining a stable supply. 1. Given above scenario, what do you think will happen to the LRAS, SRAS and AD curves in each in short run?2. And what would happen to price level and output in the economy?3. What about in long run?
Predetermined Overhead Rate, Application of Overhead to Jobs, Job CostOn April 1, Sangvikar Company had the following balances in its inventory accounts:Materials Inventory $12,750Work-in-Process Inventory 21,060Finished Goods Inventory 8,500Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116Direct materials $2,384 $2,603 $3,085Direct labor 1,800 1,420 4,420Applied overhead 1,260 994 3,094During April, Sangvikar experienced the transactions listed below.Materials purchased on account, $28,920.Materials requisitioned: Job 114, $16,800; Job 115, $12,460; and Job 116, $5,410.Job tickets were collected and summarized: Job 114, 170 hours at $11 per hour; Job 115, 200 hours at $14 per hour; and Job 116, 100 hours at $19 per hour.Overhead is applied on the basis of direct labor cost.Actual overhead was $4,535.Job 115 was completed and transferred to the finished goods warehouse.Job 115 was shipped, and the customer was billed for 125 percent of the cost.Required:1. Calculate the predetermined overhead rate based on direct labor cost.% of direct labor cost2. Calculate the ending balance for each job as of April 30. When required, round your answers to the nearest dollar. Use your rounded answers in subsequent computations, if necessary.Ending BalanceJob 114 $Job 115 $Job 116 $3. Calculate the ending balance of Work in Process as of April 30. When required, round your answer to the nearest dollar.$4. Calculate the cost of goods sold for April. When required, round your answer to the nearest dollar.$5. Assuming that Sangvikar prices its jobs at cost plus -25 percent, calculate the price of the one job that was sold during April. Round to the nearest dollar.$
Riverbed Corporation has the following accounts included in its December 31, 2020, trial balance: Accounts Receivable $111,900, Inventory $295,000, Allowance for Doubtful Accounts $9,080, Patents $80,900, Prepaid Insurance $9,790, Accounts Payable $79,100, and Cash $32,000. Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)