COMPREHENSIVE PROBLEM 2 (CP2): Guitar Universe, Inc
Guitar Universe, Inc., is a popular source of musical instruments for
professional and amateur musicians. The company's accountants make
necessary adjusting entries monthly, and they make all closing entries
annually. Guitar Universe is growing rapidly and prides itself on having
no long-term liabilities.
The company has provided the following trial balance dated December 31, 2009:
AND SO ON
Click here for the solution: Comprehensive Problem 2 (CP2): Guitar Universe, Inc
Showing posts with label instruments. Show all posts
Showing posts with label instruments. Show all posts
Sunday, September 13, 2015
Thursday, September 10, 2015
Garison Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music
P13-12 (Warranties and Premiums) Garison Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Garison uses two sales promotion techniques— warranties and premiums— to attract customers.
Musical instruments and sound equipment are sold with a one- year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 2% of sales. The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music or sheet music. Customers may exchange 200 coupons and $ 20 for a CD player. Garison pays $ 32 for each CD player and estimates that 60% of the coupons given to customers will be redeemed.
Garison’s total sales for 2010 were $ 7,200,000—$ 5,700,000 from musical instruments and sound reproduction equipment and $ 1,500,000 from recorded music and sheet music. Replacement parts and labor for warranty work totaled $ 164,000 during 2010. A total of 6,500 CD players used in the premium program were purchased during the year and there were 1,200,000 coupons redeemed in 2010.
The accrual method is used by Garison to account for the warranty and premium costs for financial reporting purposes. The balances in the accounts related to warranties and premiums on January 1, 2010, were as shown below.
Inventory of Premium CD Players $ 37,600
Estimated Premium Claims Outstanding 44,800
Estimated Liability from Warranties 136,000
Instructions
Garison Music Emporium is preparing its financial statements for the year ended December 31, 2010. Determine the amounts that will be shown on the 2010 financial statements for the following:
(1) Warranty Expense
(2) Estimated Liability from Warranties
(3) Premium Expense
(4) Inventory of Premium CD Players
(5) Estimated Premium Claims Outstanding
Click here for the solution: Garison Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music
Musical instruments and sound equipment are sold with a one- year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 2% of sales. The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music or sheet music. Customers may exchange 200 coupons and $ 20 for a CD player. Garison pays $ 32 for each CD player and estimates that 60% of the coupons given to customers will be redeemed.
Garison’s total sales for 2010 were $ 7,200,000—$ 5,700,000 from musical instruments and sound reproduction equipment and $ 1,500,000 from recorded music and sheet music. Replacement parts and labor for warranty work totaled $ 164,000 during 2010. A total of 6,500 CD players used in the premium program were purchased during the year and there were 1,200,000 coupons redeemed in 2010.
The accrual method is used by Garison to account for the warranty and premium costs for financial reporting purposes. The balances in the accounts related to warranties and premiums on January 1, 2010, were as shown below.
Inventory of Premium CD Players $ 37,600
Estimated Premium Claims Outstanding 44,800
Estimated Liability from Warranties 136,000
Instructions
Garison Music Emporium is preparing its financial statements for the year ended December 31, 2010. Determine the amounts that will be shown on the 2010 financial statements for the following:
(1) Warranty Expense
(2) Estimated Liability from Warranties
(3) Premium Expense
(4) Inventory of Premium CD Players
(5) Estimated Premium Claims Outstanding
Click here for the solution: Garison Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music
Saturday, June 27, 2015
(ACC 349 Week 3) Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges
ACC 349 Week 3
Exercise 4-11 (E4-11) Compute overhead rates and assign overhead using ABC.
Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activities Cost Drivers Total Cost
1. Materials handling Number of requisitions $35,000
2. Machine setups Number of setups 27,500
3. Quality inspections Number of inspections 27,000
The cost driver volume for each product was as follows.
Cost Drivers Instruments Gauges Total
Number of requisitions 400 600 1,000
Number of setups 200 300 500
Number of inspections 200 400 600
Instructions
1. Determine the overhead rate for each activity.
2. Assign the manufacturing overhead costs for April to the two products using activity-based costing.
3. Write a memorandum to the president of Fontillas Instrument explaining the benefits of activity-based costing.
Click here for the solution: (ACC 349 Week 3) Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges
Exercise 4-11 (E4-11) Compute overhead rates and assign overhead using ABC.
Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activities Cost Drivers Total Cost
1. Materials handling Number of requisitions $35,000
2. Machine setups Number of setups 27,500
3. Quality inspections Number of inspections 27,000
The cost driver volume for each product was as follows.
Cost Drivers Instruments Gauges Total
Number of requisitions 400 600 1,000
Number of setups 200 300 500
Number of inspections 200 400 600
Instructions
1. Determine the overhead rate for each activity.
2. Assign the manufacturing overhead costs for April to the two products using activity-based costing.
3. Write a memorandum to the president of Fontillas Instrument explaining the benefits of activity-based costing.
Click here for the solution: (ACC 349 Week 3) Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges
Subscribe to:
Posts (Atom)