On May 31, the inventory balances of Princess Designs, a manufacturer of high-quality children’s clothing, were as follows

P 3. On May 31, the inventory balances of Princess Designs, a manufacturer of high-quality children’s clothing, were as follows: Materials Inventory, $21,360; Work in Process Inventory, $15,112; and Finished Goods Inventory, $17,120. Job order cost cards for jobs in process as of June 30 had these totals:

The predetermined overhead rate is 130 percent of direct labor costs. Materials
purchased and received in June were as follows:
June 4 $33,120
June 16 28,600
June 22 31,920
Direct labor costs for June were as follows:
June 15 payroll $23,680
June 29 payroll 25,960
Direct materials requested by production during June were as follows:
June 6 $37,240
June 23 38,960

On June 30, Princess Designs sold on account finished goods with a 75 percent markup over cost for $320,000.

Required
1. Using T accounts for Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Overhead, Accounts Receivable, Payroll Payable, Sales, and Cost of Goods Sold, reconstruct the transactions in June.
2. Compute the cost of units completed during the month.
3. What was the total cost of goods sold during June?
4. Determine the ending inventory balances.
5. Jobs 24-A and 24-C were completed during the first week of July. No additional materials costs were incurred, but Job 24-A required $960 more of direct labor, and Job 24-C needed an additional $1,610 of direct labor. Job 24-A was composed of 1,200 pairs of trousers; Job 24-C, of 950 shirts. Compute the product unit cost for each job. (Round your answers to two
decimal places.)


Click here for the solution: On May 31, the inventory balances of Princess Designs, a manufacturer of high-quality children’s clothing, were as follows

On May 31, six brothers decided to form the Grimm Brothers Partnership to publish and print children's stories

On May 31, six brothers decided to form the Grimm Brothers Partnership to publish and print children's stories. The contributions of the brothers and their partnership interests are listed below. They share the economic risk of loss from liabilities according to their partnership interests.

Individual Asset Basis FMV Partnership to Partner Interest

Al Cash $15,000 $15,000 15%
Bob accounts Receiv. 0 20,000 20%
Clay Office equip. 13,000 15,000 15%
Dave Land 50,000 15,000 15%
Ed Building 15,000 150,000 20%
Fred Services ? 15,000 15%

The following other information about the contributions may be of interest:

1. Bob contributes accounts receivable from this proprietorship, which uses the cash method of accounting.
2. Clay uses the office equipment in a small business he owns. When he joins the partnership, he sells the remaining business assets to an outsider. He has claimed $8,000 of MACRS depreciation on the office equipment.
3. The partnership assumes a $130,000 mortgage on the building Ed contributes. Ed claimed $100,000 of straight-line MACRS depreciation on the commercial property.
4. Fred, an attorney, drew up all the partnership agreements and filed the neccessary paperwork. He receives a full 15% capital and profits interest for his services.

a. How much gain, loss or income must each partner recognize as a result of the formation?
b. How much gain, loss, or income must the partnership recognize as a result of the formation?
c. What is each partner's basis in the partnership interest?
d. What is the partnership's basis in its assets?
e. What is the partnership's initial book value of each asset?
f. What effects do the depreciation recapture provisions have on the property contributions?
g. How would your answer to Part a change if Fred received only a profits interest?
h. What are the tax consequences to the partners and the partnership when the partnership sells for $9,000 the land contributed by Dave? Prior to the sale, the partnership held the land as an investment for two years.

Click here for the solution: On May 31, six brothers decided to form the Grimm Brothers Partnership to publish and print children's stories

Mastery Problem: Barry Bird opened the Barry Bird Basketball Camp for children ages 10 through 18

Mastery Problem: Barry Bird opened the Barry Bird Basketball Camp for children ages 10 through 18.

AND SO ON

Check Figures:

Cash Bal, June 30: $45,495

Trial Bal, Total Debits: $96,200

Click here for the solution: Mastery Problem: Barry Bird opened the Barry Bird Basketball Camp for children ages 10 through 18