(d) The manager of Strathmore catering services Itd has been concerned by the lack of accurate store records in relation to Soko Baking flour. The manager is worried by the increasing Soko baking flour cost that has been incurred over the last few months. The following information has been extracted from the goods received note, invoices and other source documents. June 1 June 3 June 5 June 6 June 8 June 14 June 22 June 28 Soko Baking Flour Opening stock was 98 Kgs @95.50 per Kg Bought 114 Kgs @ 120.50 per Kg Bought 103 Kgs @ 140 per Kg Issued 152 Kgs Bought 258 Kgs @ 130 per Kg Issued 100 Kgs Bought 200 Kgs @ 150 per kg Issued 205 Kgs Change Case Required: Prepare the stock ledger account for Soko Baking flour using the LIFO method Month of June 0
Q: At the end of Year 2, retained earnings for the Baker Company was $2,450. Revenue earned by the…
A: Retained earnings are the unallocated profits available for distribution to the shareholders. It is…
Q: [The following information applies to the questions displayed below.] Lawson Consulting had the…
A: A trial balance is a statement that contains ledger balances. The sum of debit and credit of the…
Q: Distinguish between fraudulent financial reporting and misappropriation of assets.
A: As per our guideline we provide solution to the one question but you have asked three different…
Q: Explain the different dividend preferences that may be attached to preferred stock. Why would…
A: Lets understand the basics. There are two types of stocks are generally there in the business which…
Q: Chester Company started Year 2 with a $2,000 balance in its Cash account, a $500 balance in its…
A: The balance sheet shows the financial position of the company which involves the assets,…
Q: Question Content Area Which of the following is true regarding a limited liability company?…
A: For starting or organisation of business, several business forms can be used. These can be sole…
Q: Accounting standard IAS16: Property, Plant and Equipment make a number of recognition, measurement…
A: Accounting standard IAS 16: Property, Plant and Equipment make a number of recognition, measurement…
Q: Merchant Company issued 10-year bonds on January 1. The 5% bonds have a face value of $796,000 and…
A: Introduction: An interest expense is a cost of borrowing for a certain period of time. It is more…
Q: 1. Prepare the general journal entry/ies that would have been processed on 1 January 2021
A: General Journal is the primary book of accounting where we record the…
Q: Depreciation by different methods, and sale of a fixed asset…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: Is depreciation expense closed? If so, is it closed to income summary like the other expense…
A: Depreciation Expenses It's crucial to think about how long assets will keep worth as well as how to…
Q: Yancey Productions is a film studio that uses a job-order costing system. The company’s direct…
A: The traditional method of overhead allocation is based on a predetermined overhead rate. The…
Q: Jinay Company declares a 50% large stock dividend when there were 5.4 million common shares…
A:
Q: Adjusting Entries for Accrued Salaries Perimeter Realty Co. pays weekly salaries of $14,800 on…
A: Adjusting entries are prepared by management to ensure the accrual basis accounting system.…
Q: 17. Calculate the prime costs and conversion costs if a company incurs the following to produce wine…
A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…
Q: Prepare a budgeted income statement using the information shown. Sales (units) Sales price per unit…
A: A budgeted income statement is a document that helps to estimate and evaluate a business revenue and…
Q: Required a. Prepare a deferred tax worksheet to identify the temporary differences arising in…
A: A deferred tax asset is like a prepaid tax, the benefit of which will be received in the future…
Q: Directions: Fill in the Cash Basis Income Statement and the Accrual Basis Income Statement given the…
A: Income Statement On cash Basis :— Cash Basis Income Statement means all Income or Or expenses is…
Q: Prepare the Financial Statements includes the Statement of cash flow thank you
A: Financial statements are those statements which are prepared at the end of financial period for…
Q: TB MC Qu. 8-48 (Static) A company purchases inventory for... A company purchases inventory for…
A: The inventory is recorded differently under different approaches as perpetual and periodic inventory…
Q: ABC Company bought some land for $20,000 cash. The journal entry for this transaction would include…
A: Introduction: A journal entry is a documentation of a business deal in the accounting system of an…
Q: The manager of Sunshine bakery is disappointed with the reported net income for the period. The…
A: Introduction: Activity-based costing (ABC) is a method of more exactly allocating overhead costs by…
Q: 2. The following data was extracted from the books of Good Times Ltd., a manufacturing concern.…
A: A cost ledger card is a card that shows regular records in form of units and value of material,…
Q: 4. The amount of P50,000 was deposited in the bank earning an interest of 7.5% compounded…
A: Depositing the cash into the bank for a specific time period can benefit the lender since his sum of…
Q: Enviro Company issues 12.50%, 10-year bonds with a par value of $470,000 and semiannual interest…
A: Cash proceeds from the issue of bond = Par value x Selling price, Semi-annual interest expense =…
Q: Explain and evaluate the effects of capitalizing versus expensing costs in the period in which they…
A: Capitalization : When a company incurs any expense, benefit of which will be available for more than…
Q: 5:31 Done FM 1 CHAPTER 3 EXERCISES Illustration: 3 From the following particulars of AVS LLC., for…
A: Income statement is one of the financial statement which shows all incomes and all expenses and at…
Q: Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: Mariana places the initial amount of $1,000,000 in a CDT at a monthly compound interest of 5% for 3…
A: Future value (FV) is the amount that a present investment will increase in value over time when kept…
Q: The following information concerns production in the Baking Department for December. All direct…
A: Equivalent Units of Production: It is an evaluation of the work completed during the period…
Q: TB MC Qu. 8-72 (Algo) Fulbright Corporation uses the periodic inventory... Fulbright Corporation…
A: FIFO Method :— It is one of the method of inventory valuation in which it is assumed that first…
Q: Journal entries Crazy Mountain Tours Co. is a travel agency. The nine transactions recorded by Crazy…
A: Journal Entries :— It is an act of recording transaction in book of account when it is occured for…
Q: Jason makes six EOY deposits of $2,000 each in a savings account paying 5% compounded annually. If…
A: The compound interest is calculated on the principal amount annually. It considers the present value…
Q: P1-1Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet Assume that…
A: Financial statement means the statement which include the income statement and the balance sheet.…
Q: Please help me understand how to find direct labor and total manufacturing costs.
A: Cost accounting is one of the important field of accounting, under which several type of costs are…
Q: George and Wanda received $29,100 of Social Security benefits this year ($11,000 for George, $18,300…
A: Modified AGI= Adjusted AGI + Exempt or excluded income - Deductions Social security benefit are the…
Q: Describe the three fundamental conditions necessary for the commission of fraud. Provide an…
A: The commision of fraud is a type of the fraud in which the employee of the company creates some fake…
Q: What is the amount of cash received from customers during the year?
A: There are two types of Sales: (1) Cash Sales and (2) Credit Sales. Cash is received immediately at…
Q: The following transactions were completed by the company. a. The owner invested $17,200 cash in the…
A: Accounting equation refers to the equation which forms the basics of the accounting as this equation…
Q: Predetermined Factory Overhead Rate Poehling Medical Center has a single operating room that is used…
A: The following information given in the question: 1. Total operating room overhead = $924,000 2.…
Q: Golden Wind Office Furniture Company makes all types of office desks. The Home Office Desk Division…
A: Transfer Price: A transfer price is the cost of a good or service that one division of a business…
Q: cash flows from operating activities
A: The cash flow statement is one of the financial statements to be prepared by the Company. It can be…
Q: Starr Company shows the following information for the month. $ 81,000 Raw materials purchased on…
A: No. Transaction General Journal Debit Credit A 1 Raw Material Inventory $81,000 Account…
Q: TNT CORP HAS THE FOLLOWING STOCK OPTION INFORM OPTIONS GRANTED GRANT DATE PAR VALUE/UNIT EXERCISE…
A: The stock option is the method of compensating the employees by granting them the option to buy the…
Q: Retail Corporation reported the following Income Statement for the past two years: Retail…
A: The net income from a company's main, core business operations is known as operating profit. Since…
Q: Statement of cash flows A summary of cash flows for A-One Travel Service for the year ended August…
A: The financial statements of the business are prepared using the adjusted trial balance. The cash…
Q: The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt of $5.2 million,…
A: Operating cash flow :— It is one of the section of cash flow statement that shows change in cash due…
Q: Which of the following accounting standards regulate the preparation and presentation of…
A: Solution The purpose of Indian Accounting standard is to bring more transparency and accuracy of…
Q: Mickley Company's plantwide predetermined overhead rate is $21.00 per direct labor-hour and its…
A: The expenses incurred during the creation of a product are known as manufacturing costs. Direct…
Q: what would be the difference if the ¹ Degree of completition: DM, were 10% instead of 100%
A: The total cost of producing a product, including raw materials and operating costs, is detailed in a…
Step by step
Solved in 2 steps
- I'm having trouble with the following problem from Cengage. I’m getting error messages in the journalizing for Summit Company. Included are the instructions and screenshots of my results. Please help. The following selected transactions were completed during August between Summit Companyy and Beartooth Co. Aug 1 Summit Company sold merchandise on account to Beartooth Co., $48,000, term FOB Destination, 2/15, n/eom. The cost of the goods sold was $28,800. 2 Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was $40,000. 9 Beartooth Co. Paid freight of $2,300 on August 5 purchase from Summit Company. 15 Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, n/45. Summit paid freight of $1,675 which was added to the…Smooth Sounds manufactures and sells a new line of MP-3 players. Unfortunately, Smooth Sounds suffered serious fire damage at its home office. As a result, the accounting record for October were partially destroyed- and completely jumbled. Smooth Sounds has hired you to help figure out the missing pieces of the accounting puzzle. Work in process inventory, October 31. $1,500 Accounts payable, October 1……… $3,000 Finished goods inventory, October 1….. 4,300 Direct materials used in October…….. 8,000 Direct labor in October……. 3,000 Accounts payable, October 31…… 5,200 Purchase of direct materials in October 9,000 Accounts receivable, October 31…… 6,500 Work in process inventory, October 1----- 0 Direct materials inventory, Oct. 31…. 3,000 Revenues in October………… 27,000 Manufacturing Overhead in October… 6,300 Accounts receivable, October 1….. 2,000 Gross profit in October……………The following represents the financial information for Plaza Plastics for May and June: Sales revenue Costs Scrap Process inspection Quality training Product testing equipment Field testing Warranty repairs Rework Preventive maintenance Legal expense for warranty claims. Materials inspection Required A May $ 843,000 Required B Scrap $ 2,160 3,040 23,940 5,340 8,580 3,540 19,940 16,380 7,980 11,460 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for May and June. Activity Complete this question by entering your answers in the tabs below. June $ 636,000 $ 1,870 1,920 11,880 4,500 6,480 3,240 16,830 8,730 4,500 11,340 Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. Category
- High Tech Electronics manufactures and sells a line of radio. Unfortunately, High Tech Electronics suffered serious fire damage at its home office. As a result, the accounting records for October were partially destroyed and completely jumbled. High Tech Electronics has hired you to help figure out the missing pieces of the accounting puzzle. Assume that the Raw Materials Inventory contains only direct materials. a. Find the Cost of Goods Sold in October. Determine the Cost of Goods Sold in October by completing the following table. Cost of goods sold Data table C... Print (Click the icon to view the amounts.) Revenues in October. Work in process inventory, October 31 ... $ Raw materials inventory, October 31..... $ Direct labor in October $ Manufacturing overhead in October ..... $ Work in process inventory, October 1.... $ Finished goods inventory, October 1 .... $ Direct materials used in October $ Gross profit in October. $ 12.100 Purchases of direct materials in October $ 9,300…Begin by determining which of the suggested strategies are inconsistent with IMA standards. Postpone planned advertising expenditures from December to January. Do not record sales returns and allowances on the basis that they are individually immaterial. a. b. C. d. e. Persuade retail customers to accelerate January orders to December. Reduce the allowance for bad debts (and bad debts expense). Harmony Tennis ships finished goods to public warehouses across the country for temporary storage until it receives firm orders from customers. As receives orders, it directs the warehouse to ship the goods to nearby customers. The assistant controller suggests recording goods sent to the public warehouses as sales.Gurkha sells carpets from several retail outlets. In previous years the company has undertaken for fitting the carpets in customers' premises. Customers pay for the carpets at the time they are ordered. The average length of time from a customer ordering a carpet to its fitting is 15 days. In previous years, Gurkha had not recognized a sale in income until the carpet had been successfully fitted as the rectification costs of any fitting error would be expensive. From 1 April 2015 Gurkha changed its method of trading by sub-contracting the fitting to approved contractors. Under this policy the sub-contractors are paid by Gurkha and they (the subcontractors) are liable for any errors made in the fitting. Because of this Gurkha is proposing to recognize sales when customers order and pay for the goods, rather than when they have been fitted. Details of the relevant sales figures are: Sales made in retail outlets for the year to 31 March 2016 Sales value of carpets fitted in the 15 days to…
- ipunys supervisors and managers dur- pany received an order on December 29 that was boxed and was sitting o the ioading dock awaiting pick-up on December 31. The shipper picked up the on January 1 and delivered them on January 6. The shipping terms were FOB ship- g Foint. The goods had a selling price of $40.000 and a cost of $29,000. The goods *ere not included in the count because they were sitting on the doCk. uded in the count was $50,000 of goods that were parts for a machine that the ny no longer made. Given the high-tech nature of Ryder's products, it wa ikely that these obsolete parts had any other use. However, management would Breier to keep them on the books at cost, "since that is what we paid for them, after all." RN tions *repare a schedule to determine the correct inventory amount. Provide explanations to each item above, stating why you did or did not make an adjustment for eacn nem. -3 Gato Inc. had the following inventory situations to consider at January 31, its…XYZ Bakery's general manager was puzzled by the results of the income statement for the month which showed a net loss for the bakery. The owner is puzzled because of the volume of customers who flood the bakery each day for baked goods. The owner calculated the cost of direct materials and direct labor and was sure the prices were set right and overhead was estimated based on prior year expenses. How is it possible that volumes could be high but the store could lose money? What are other factors the owner should consider to make sure next year's financial statements report net income?9. Statement 1 (S1): A home office records shipments to its branch at billing prices and adjusts the loading account at year-end. When this approach is used, the loading account during the period will always be zero. Statement 2 (S2): If a “loading” account is used, the “shipments to branch” account on the home office books is created for the actual cost of shipments made to the branch whereas the “shipments from the home office” on the branch’s books includes any initial unrealized profit. * a. S1- True; S2- True b. S1- True; S2- False c. S1- False; S2- True d. S1- False; S2- False 10.Statement 1 (S1): A markup of 16 2/3% on billed price is equal to a markup of 14 2/7% on cost of merchandise shipped to the branch by the home office.Statement 2 (S2): If the home office bills merchandise shipments to the branch at prices above home office cost, the net income reported to the home office by the branch is overstated from a total company point of view. * a. S1- True; S2- True b. S1-…
- Ethics and Inventory An electronics store has a large number of computers that use outdated technology in its inventory. These computers are reported at their cost. Shortly after the December 31 year end, the store manager insists that the computers can be sold for well over their cost. But the stores accountant has been told by the sales staff that it will be difficult to sell these computers for more than half of their inventory cost. Required: What are the consequences for the accountant of participating in a misrepresentation of the inventorys value?[The following information applies to the questions displayed below.] Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer. During the past quarter, the purchasing and delivery data for the two suppliers showed the following. Milan Dundee Total Total purchases (cartons) 91,000 39,000 130,000 Average purchase price (per carton) $ 22.00 $ 24 $ 22.60 Number of deliveries 60 40 100 Percentage of late deliveries 25 % 10 % 19 % The Accounting Department recorded $533,000 as the cost of late deliveries to customers. Required: Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the…Day Street Deli’s owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analysis for the year just ended. Required: Criticize and correct the owner’s analysis.