Caprice, Inc has adopted a JIT management system and has the following transactions in December
Dec 3 Purchased raw materials on account, $80,000
Dec 8 Incurred labor and overhead costs, $105,000
Dec 15 Completed 750 units with standard costs of $106 for direct materials and $165 for conversion costs
Dec 23 Sold 650 units for $395 each
Record the journal entries for Caprice, Inc for December.
What will be an ideal response
Date Accounts and Explanation Debit Credit
Dec 3 Raw and In-Process Inventory 80,000
Accounts Payable 80,000
Dec 8 Conversion Costs 105,000
Wages Payable, Accumulated Depreciation, etc. 105,000
Dec 15 Finished Goods Inventory 203,250
Raw and In-Process Inventory (750 units x $106 ) 79,500
Conversion Costs (750 units x $165 ) 123,750
Dec 23 Accounts Receivable (650 units x $395 ) 256,750
Sales Revenue 256,750
Dec 23 Cost of Goods Sold (650 units x [$106 + $165]) 176,150
Finished Goods Inventory 176,150
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In the United States, companies tend to reach out to the government for assistance when finances are pressured.
Answer the following statement true (T) or false (F)
All of the following are conditions that could affect the valuation of investments on the balance sheet except
A) changes in the general purchasing power of the dollar. B) changes in the operations of investee companies. C) changes in the market value or fair value of the investments. D) changes caused by the passage of time.
Burrows Inc had an outstanding loan at the beginning of 2011 totaling $50,000. During 2011, $16,800 was paid out related to this loan broken down as follows: $15,000 towards principal and $1,800 in interest. Which of the following statements is correct regarding how the $16,800 payment should be depicted on the statement of cash flows?
A) The entire $16,800 should be shown as a cash outflow for financing activities. B) The entire $16,800 should be shown as a cash outflow for investing activities. C) The $15,000 principal portion should be shown as a cash outflow for financing activities, and the $1,800 in interest should be shown as a cash outflow for operating activities. D) The $15,000 principal portion should be shown as a cash outflow for investing activities, and the $1,800 in interest should be shown as a cash outflow for operating activities.
All but one of the following are true statements with regard to the use ratio. Which one is not a true statement?
A. A use ratio of 20 percent or higher is generally considered to be satisfactory. B. A use ratio of less than 20 percent is generally considered to be satisfactory. C. The use ratio is found by dividing the number of records not used into the number of records used. D. The use ratio is a satisfactory means of assessing the effectiveness of the program.