For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly. A new purchasing agent has been hired by the company who wants to start using the economic-order-quantity method and its supporting decision elements. She has gathered the following information:
Annual demand in units 250
Days used per year 250
Lead time, in days 10
Ordering costs $100
Annual unit carrying costs $20
Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs (17 points)
Click here for the solution: For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly
Showing posts with label monthly. Show all posts
Showing posts with label monthly. Show all posts
Thursday, November 26, 2015
Sunday, September 27, 2015
Certain item descriptions and amounts are missing from the monthly schedule of cost of goods manufactured and the income statement of Pinta Manufacturing Company
P16-32B Certain item descriptions and amounts are missing from the monthly schedule of cost of goods manufactured and the income statement of Pinta Manufacturing Company.
Requirement
1. Fill in the missing words (___) and amounts (X).
Click here for the solution: Certain item descriptions and amounts are missing from the monthly schedule of cost of goods manufactured and the income statement of Pinta Manufacturing Company
Requirement
1. Fill in the missing words (___) and amounts (X).
Click here for the solution: Certain item descriptions and amounts are missing from the monthly schedule of cost of goods manufactured and the income statement of Pinta Manufacturing Company
Friday, September 25, 2015
Mendosa Company closes its books monthly
Problem 9-6A (P9-6A) Mendosa Company closes its books monthly. On September 30, selected ledger account balances are:
Notes Receivable $33,000
Interest Receivable $ 170
Notes Receivable include the following.
Date Maker Face Term Interest
Aug. 16th Chang. Inc $8,000 60 days 8%
Aug. 25th Hughey Co. $9,000 60 days 10%
Sept. 30th Skinner Corp $16,000 6 months 9%
Interest is computed using a 360-day year. During October, the following transactions were completed.
Oct 7 Made sales of $6,900 on Mendosa credit cards
12 Made sales of $900 on MasterCard Credit cards. The credit card service charge is 3%.
15 Added $460 to Mendosa customer balance for finance charges on unpaid balances
15 Received payment in full from Chang Inc. on the amount due
24 Received notice that the Hughey note has been dishonored. (assume that Hughey is expected to pay in the future)
Instructions
(a) Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable
(b) Enter the balances at October 1 in the receivable accounts. Post the entries to all of the receivable accounts.
(c) Show the balance sheet presentation of the receivable accounts at October 31
Click here for the solution: Mendosa Company closes its books monthly
Notes Receivable $33,000
Interest Receivable $ 170
Notes Receivable include the following.
Date Maker Face Term Interest
Aug. 16th Chang. Inc $8,000 60 days 8%
Aug. 25th Hughey Co. $9,000 60 days 10%
Sept. 30th Skinner Corp $16,000 6 months 9%
Interest is computed using a 360-day year. During October, the following transactions were completed.
Oct 7 Made sales of $6,900 on Mendosa credit cards
12 Made sales of $900 on MasterCard Credit cards. The credit card service charge is 3%.
15 Added $460 to Mendosa customer balance for finance charges on unpaid balances
15 Received payment in full from Chang Inc. on the amount due
24 Received notice that the Hughey note has been dishonored. (assume that Hughey is expected to pay in the future)
Instructions
(a) Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable
(b) Enter the balances at October 1 in the receivable accounts. Post the entries to all of the receivable accounts.
(c) Show the balance sheet presentation of the receivable accounts at October 31
Click here for the solution: Mendosa Company closes its books monthly
Tuesday, September 8, 2015
Prepare a table with the following headings for a monthly bank reconciliation dated September 30
ACC 225 Week 8
Exercise 8-6
Prepare a table with the following headings for a monthly bank reconciliation dated September 30:
For each item 1 through 12, place an x in the appropriate column to indicate whether the item should be added to or deducted from the book or bank balance, or whether it should not appear on the reconciliation. If the book balance is to be adjusted, place a Dr. or Cr. in the Adjust column to indicate whether the Cash balance should be debited or credited. At the left side of your table, number the items to correspond to the following list.
1. Bank service charge.
2. Checks written and mailed to payees on October 2.
3. Checks written by another depositor but charged against this company’s account.
4. Principal and interest on a note collected by the bank but not yet recorded by the company.
5. Special bank charge for collection of note in part 4 on this company’s behalf.
6. Check written against the company’s account and cleared by the bank; erroneously not recorded by the company’s recordkeeper.
7. Interest earned on the cash balance in the bank.
8. Night deposit made on September 30 after the bank closed.
9. Checks outstanding on August 31 that cleared the bank in September.
10. NSF check from customer returned on September 25 but not yet recorded by this company.
11. Checks written by the company and mailed to payees on September 30.
12. Deposit made on September 5 and processed by the bank on September 6.
Click here for the solution: Prepare a table with the following headings for a monthly bank reconciliation dated September 30
Exercise 8-6
Prepare a table with the following headings for a monthly bank reconciliation dated September 30:
For each item 1 through 12, place an x in the appropriate column to indicate whether the item should be added to or deducted from the book or bank balance, or whether it should not appear on the reconciliation. If the book balance is to be adjusted, place a Dr. or Cr. in the Adjust column to indicate whether the Cash balance should be debited or credited. At the left side of your table, number the items to correspond to the following list.
1. Bank service charge.
2. Checks written and mailed to payees on October 2.
3. Checks written by another depositor but charged against this company’s account.
4. Principal and interest on a note collected by the bank but not yet recorded by the company.
5. Special bank charge for collection of note in part 4 on this company’s behalf.
6. Check written against the company’s account and cleared by the bank; erroneously not recorded by the company’s recordkeeper.
7. Interest earned on the cash balance in the bank.
8. Night deposit made on September 30 after the bank closed.
9. Checks outstanding on August 31 that cleared the bank in September.
10. NSF check from customer returned on September 25 but not yet recorded by this company.
11. Checks written by the company and mailed to payees on September 30.
12. Deposit made on September 5 and processed by the bank on September 6.
Click here for the solution: Prepare a table with the following headings for a monthly bank reconciliation dated September 30
The controller of Dash Shoes Inc. instructs you to prepare a monthly cash budget for the next three months
PR 22-4A The controller of Dash Shoes Inc. instructs you to prepare a
monthly cash budget for the next three months. You are presented with
the following budget information:
June July August
Sales 120,000 150,000 200,000
Manufacturing costs 50,000 65,000 72,000
Selling & admin exp 35,000 40,000 45,000
Capital expenditures ---- --- 48,000
AND SO ON
INSTRUCTIONS:
1. Prepare a monthly cash budget and supporting schedules for June, July, and August 2010.
2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?
Click here for the solution: The controller of Dash Shoes Inc. instructs you to prepare a monthly cash budget for the next three months
June July August
Sales 120,000 150,000 200,000
Manufacturing costs 50,000 65,000 72,000
Selling & admin exp 35,000 40,000 45,000
Capital expenditures ---- --- 48,000
AND SO ON
INSTRUCTIONS:
1. Prepare a monthly cash budget and supporting schedules for June, July, and August 2010.
2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?
Click here for the solution: The controller of Dash Shoes Inc. instructs you to prepare a monthly cash budget for the next three months
Saturday, August 15, 2015
Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes
E9-12 (Gross Profit Method) Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
Inventory, May 1 $ 160,000
Purchases (gross) 640,000
Freight-in 30,000
Sales 1,000,000
Sales returns 70,000
Purchase discounts 12,000
Instructions
(a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.
(b) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost.
Click here for the solution: Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes
Inventory, May 1 $ 160,000
Purchases (gross) 640,000
Freight-in 30,000
Sales 1,000,000
Sales returns 70,000
Purchase discounts 12,000
Instructions
(a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.
(b) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost.
Click here for the solution: Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes
Wednesday, July 15, 2015
Monthly production costs in Pesavento Company for two levels of production are
BE5-1 Monthly production costs in Pesavento Company for two levels of production are:
Cost 2,000 units 4,000 units
Indirect labor $10,000 $20,000
Supervisory salaries 5,000 5,000
Maintenance 4,000 7,000
Indicate which costs are variable, fixed, and mixed, and give the reason for each answer.
Click here for the solution: Monthly production costs in Pesavento Company for two levels of production are
Cost 2,000 units 4,000 units
Indirect labor $10,000 $20,000
Supervisory salaries 5,000 5,000
Maintenance 4,000 7,000
Indicate which costs are variable, fixed, and mixed, and give the reason for each answer.
Click here for the solution: Monthly production costs in Pesavento Company for two levels of production are
Wednesday, July 8, 2015
For 2013, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour
(Predetermined Overhead Rate) For 2013, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour. The firm’s 2013 expected annual capacity is $78,000 direct labor hours, to be incurred evenly each month. Making one unit of the company product requires 1.5 direct labor hours.
a. Determine the total overhead to be applied per unit of product in 2013.
b. Prepare journal entries to record the application of overhead to Work in process inventory and the incurrence of $128,550 of actual overhead in January 2013, when 6,390 direct labor hours were worked.
c. Given the actual direct labor hours in (b), how many units would you have expected to be produced in January.
Click here for the solution: For 2013, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour
a. Determine the total overhead to be applied per unit of product in 2013.
b. Prepare journal entries to record the application of overhead to Work in process inventory and the incurrence of $128,550 of actual overhead in January 2013, when 6,390 direct labor hours were worked.
c. Given the actual direct labor hours in (b), how many units would you have expected to be produced in January.
Click here for the solution: For 2013, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour
Tuesday, July 7, 2015
(Cash Budget) The Controller of Santa Fe Housewares Inc. instructs you to prepare a monthly cash budget for the next three months
PR22-4A Cash Budget
The Controller of Santa Fe Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:
March April May
Sales 70,000 84,000 92,000
Manufacturing cost 32,000 39,000 42,500
Selling and administrative expenses 12,000 18,000 21,000
Capital expenditures 20,000
The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in full in the month following the sale and the remainder the following month. Depreciation, insurance, and property tax expense represent $3,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in July, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of August 1 include cash of $10,000, marketable securities of $40,000, and accounts receivable of $75,600 ($60,000 from February sales and $15,600 from January sales).Sales on account for January and February were $52,000 and $60,000, respectively.
Current liabilities as of August 1 include s $12,000, 15%, 90-day note payable due May 20 and $4,000 of accounts payable incurred in July for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. It is expected that $1,800 in dividends will be received in March. An estimated income tax payment of $16,000 will be made in April. Santa Fe's regular quarterly dividend of $3,000 is expected to be declared in April and paid in May. Management desires to maintain a minimum cash balance of $30,000.
Instructions:
1. Prepare a monthly cash budget and supporting schedules for August, September, and October. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculation.
2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?
Click here for the solution: (Cash Budget) The Controller of Santa Fe Housewares Inc. instructs you to prepare a monthly cash budget for the next three months
The Controller of Santa Fe Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:
March April May
Sales 70,000 84,000 92,000
Manufacturing cost 32,000 39,000 42,500
Selling and administrative expenses 12,000 18,000 21,000
Capital expenditures 20,000
The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in full in the month following the sale and the remainder the following month. Depreciation, insurance, and property tax expense represent $3,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in July, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of August 1 include cash of $10,000, marketable securities of $40,000, and accounts receivable of $75,600 ($60,000 from February sales and $15,600 from January sales).Sales on account for January and February were $52,000 and $60,000, respectively.
Current liabilities as of August 1 include s $12,000, 15%, 90-day note payable due May 20 and $4,000 of accounts payable incurred in July for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. It is expected that $1,800 in dividends will be received in March. An estimated income tax payment of $16,000 will be made in April. Santa Fe's regular quarterly dividend of $3,000 is expected to be declared in April and paid in May. Management desires to maintain a minimum cash balance of $30,000.
Instructions:
1. Prepare a monthly cash budget and supporting schedules for August, September, and October. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculation.
2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?
Click here for the solution: (Cash Budget) The Controller of Santa Fe Housewares Inc. instructs you to prepare a monthly cash budget for the next three months
Subscribe to:
Posts (Atom)