The accrual accounting rate-of-return method has a significant weakness for use in making capital budgeting decisions because it does NOT track cash flows and it ignores the time value of money
On August 3, Marley's Sporting Goods accepted a six-month promissory note from J.J. Brown, who owed $490 on account. (J. J. had needed more time to pay his balance.) The promissory note had a 10 percent interest rate. The journal entry on August 3 to record the transaction would be: DEBITCREDIT(A)Notes Receivable490 Accounts Receivable 490(B)Cash490 Notes Receivable 490(C)Cash490 Accounts Receivable 490(D)Accounts Receivable490 Notes Receivable 490
Chahana acquired and placed in service $1,185,000 of equipment on August 1, 2019 for use in her sole proprietorship. The equipment is 5-year recovery property. No other acquisitions are made during the year. Chahana elects to expense the maximum amount under Sec. 179, and bonus depreciation is not applied. Chahana's total deductions for 2019 (including Sec. 179 and depreciation) are
The Bell Corporation uses a general journal, a sales journal, a purchases journal, a cash receipts journal, and a cash payments journal. Below are listed 12 of Bell Corporation's transactions in for the current year.
Camps Inc. has a standard cost system. The standards for direct materials for one of its products specify 4.4 ounces of a particular input per unit of output at a standard cost of $6.40 per ounce. The company has reported the following actual results for the product for May:Actual output2,900unitsRaw materials purchased14,600ouncesActual cost of raw materials purchased$86,140Raw materials used in production12,770ouncesRequired:a. Compute the materials price variance for this input for May.b. Compute the materials quantity variance for this input for May.
The Duggart Company had the following transactions and events during its first year of operations. Estimated overhead for the year was $770,000; estimated direct labor cost for the year was $350,000. 1. Purchased materials on account, $567,000.2. Requisitioned materials for production as follows: direct materials - 85 percent of purchases, indirect materials - 12 percent of purchases.3. Direct labor for production is $331,000, indirect labor is $125,000.4. Overhead incurred (not including materials or labor): $529,000.5. Overhead is applied to production based on direct labor cost at the rate of ________.6. Goods costing $976,000 were completed during the period.7. Goods costing $513,200 were sold on account for $776,000.Required:Determine the ending balances for:(a) Materials
Handerson Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateDirect materials 8.5kilos$6.00per kiloDirect labor 0.4hours$20.00per hourVariable overhead 0.4hours$6.00per hourThe company reported the following results concerning this product in August. Actual output 3,200unitsRaw materials used in production 29,030kilosPurchases of raw materials 31,600kilosActual direct labor-hours 1,160hoursActual cost of raw materials purchases$195,920 Actual direct labor cost$22,736 Actual variable overhead cost$7,540 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The materials price variance for August is:
Companies that use departmental overhead rates trace direct materials and direct labor to cost objects just as they would in a traditional costing system
After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?
Juhasz Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or HoursStandard Price or RateDirect labor 0.5hours$20.00per hourVariable overhead 0.5hours$4.00per hourIn August the company produced 7,900 units using 4,080 direct labor-hours. The actual variable overhead cost was $15,096. The company applies variable overhead on the basis of direct labor-hours.The variable overhead rate variance for August is:
The standards for product G78V specify 4.1 direct labor-hours per unit at $12.10 per direct labor-hour. Last month 1,600 units of product G78V were produced using 6,600 direct labor-hours at a total direct labor wage cost of $77,220.Required:a. What was the labor rate variance for the month?b. What was the labor efficiency variance for the month?
Tiffany Company has two divisions, Gold and Silver. Gold produces a unit that Silver could use in its production. Silver currently is purchasing 50,000 units from an outside supplier for $25. Gold is operating at less than full capacity and has variable costs of $13.50 per unit. The full cost to manufacture the unit is $20. Gold currently sells 450,000 units at a selling price of $27. If an internal transfer is made, variable shipping and administrative costs of $1 per unit could be avoided. How much profit will Gold receive from the transfer if a transfer price of $22.50 is agreed upon?
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