Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [LO3-1, LO3-2, LO3-4] The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 499,968 (b) 416,640 Bal. 83,328 Work in Process Bal. 5,360 (c) 778,000 319,500 93,500 (b) 416,640 Bal. 57,000 Finished Goods Bal. 33,000 (d) 674,000 (c) 778,000 Bal. 137,000 Cost of Goods Sold (d) 674,000 The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows:
Work in Process, ending $ 27,360
Finished Goods, ending 65,760
Cost of Goods Sold 323,520
Overhead applied $ 416,640
For example, of the $57,000 ending balance in work in process, $27,360 was overhead that had been applied during the year. Required:
1. Identify reasons for entries (a) through (d).
2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.

Answer and Explanation:

The journal entry is shown below:

Unearned revenue $4,770

      To fees earned $4,770

(Being the adjusting entry is passed)

The calculation is shown below:

= Received amount ÷ total months × calculated months

= $19,080 ÷ 36 months × 9 months

= $4,770

Hence, the above entry should be recorded and the same is to be considered

Answer:

a. 8.10%

b.  $50,930,776.45

Explanation:

a. The 2018 prize money can be expressed as a compounded amount of the 1898 amount in the manner;

2,640,000 = 230 * ( 1 + rate) ^ 120 years

Year 2018 - 1898 = 120 years

Solving for rate;

2,640,000/230 =  ( 1 + rate) ^ 120 years

( 1 + rate) = (2,640,000/230) ^ 1/120

1 + rate = 1.081016

rate = 0.0810

= 8.10%

b. Number of periods = 2056 - 2018

= 38 years

= 2,640,000 * ( 1 + 8.10%) ^ 38

= $50,930,776.45

Answer:

This question is incomplete, the concepts are missing. Those concepts are the following:

1) Just in time manufacturing

2) Continuous improvement

3) Customer orientation

4) Total quality management

5) Triple bottom line

And the matches are the following:

1 - D ; 2 - E ; 3 - A ; 4 - B ; 5 - C

Explanation:

Just in time manufacturing is a concept known in the business field that refers to the method used by the companies who believe that having every little detail in time would improve the production process of the company and that is to have great agreements with the suppliers as well. That is why that inventory is acquired or produced only as needed.

Continuous improvement is the concept that refers to the state where the managers and employees of the company are always looking for new ways to improve the operations of the company itself.

Costumer orientation is the concept known as the flexible product design that the company chooses to use in order to adjust their products in order to what the customers really need or want.

Total quality management is the concept that refers to the situation where all the company is completely focused in the quality throughout the production process.

Triple bottom line is refered to the corporation social responsibility and that is why that this method is related to the financial, social and environmental performance of the company as a whole to the society where it resides.

Answer:

Follows are the solution to this question:

Explanation:

The price of one share plus one choice for the index fund is $112. Its distribution of HPR probabilities on the portfolio is:  

[tex]\boxed{\left \begin{array}{cccc} \text{economy states} & \text{Probability}& \text{Endig price+Put+Dividend}&HPR\\ Excellent &0.25& \$ 131.00& \frac{(131-112)}{112} = 17\% \\Good &0.45&\$ 114.00& \frac{(114-112)}{112} = 1.8 \% \\poor &0.25& \$ 113.00& \frac{(113.50 -112)}{112} = 1.3 \% \\ Crash&0.5& \$ 112.00& \frac{(112-112)}{112} = 0.0 \% \end{array}\right}[/tex] The chances of dollar return distributions on the CD plus call option can be defined in the attached file please find it:

Answer:

I have typed each answer under it's corresponding question for easier understanding.

Explanation:

1. Why is it important for IRS and for U.S. state governments to use data warehousing and business intelligence (BI) tools in managing state revenues?

using Bi tools allows for better analysis and this woiuld make understanding and governance to be easier for the government. revenues can be very complex and difficut to understand but business intelligence tools can make it easier.

2. What were the challenges the state of Maryland was facing with regard to tax fraud?

the state of maryland was having issues with tax fraud  due to fraudulent returns and they were having problems detecting and investigating this because of how time consuming the process was.

3. What was the solution they adopted?

As a solution the state used a data warehouse from teradata. this gave them the opportunity to be able to identify and trace data that showed patterns of fraudulent returns. priority was made to go after refund fraud.

4. Do you agree with their approach? Why?

yes i agree with their approach. the reason is because the use of this tools in tracing tax fraud was an efficient way of tracing the problem and through the results appropriateways on how to combat the problem would be adopted.

5. What were the results that they obtained? Did the investment in BI and data warehousing pay off?

through the use of these tools the state was able to recover about 7 million dollars. therefore the investment paid off.

6. What other problems and challenges do you think federal and state governments are having that can benefit from BI and data warehousing?

some other problems that the government is having which can benefit  from these tools are

a. voter fraud

b. medical usage

c. other forms of tax issues.

Answer: $1,651

Explanation:

The only cost for Internal failure is Repairing the dog beds prior to sale which is $1,651.

The other costs are classified as;

Wally Company's cost of quality for internal failures is $1,651

= repairing defective dog

= $1,651

We know that

Repairs for dog beds under warranty - External failure cost

Seamstress training. - Prevention cost

Wages of part-time inspector of products - Appraisal cost

Cost of replacements given to customers for defective dog beds - External failure cost

Product liability insurance - External failure cost

Inspection of sewing machines as part of routine maintenance -Appraisal cost

Inspection of fabric and thread for defects - Appraisal cost

learn more about the cost here: https://brainly.com/question/19817278

Answer: See explanation

Explanation:

a. . Assume also that borrowers eventually return all of these funds to their banks in the form of transaction deposits. What is the full effect of this purchase on bank deposits and the money supply?

Based on the above scenario, there'll be an increase in bank deposits and money supply by $16.4 billion.

= (1/5%) × $820 million

= (1/0.05) × $820 million

= 20 × $820 million

= 16,400,000,000

= 16.4 billion

b.What is the full effect of this purchase on bank deposits and the money supply if borrowersreturn only 95 percent of these funds to their banks in the form of transaction deposits?

This will lead to an increase in the bank deposits and money supply by $8.2 billion

= [1/(0.05+(1-0.95)] × $820 million

= [1/0.05+0.05] × $820 million

= (1/0.1) × $820 million

= 10 × $820 million

= $8.2 billion

Answer:

a. Reconciliation of the number of physical units worked on during the period.

As at Beginning                                36,000

Units started in current period       74,000

Units to be accounted for                110,000

Transferred out                                21,000   Balancing figure

(110,000 - 89,000)

As at end                                            89,000

Units accounted for                          110,000

b. Calculation of equivalent units.

                                            Direct Materials   Conversion Costs

Transferred out (A)                     21,000                   21,000

Units as at end (B)                      89,000                   89,000

Percentage of completion (C)   100%                          52%

Equivalent units as at 31 Dec    89,000                    46,280

(D = B * C)

Total equivalent units (A+D)     110,000                   67,280

c. Calculation the cost per equivalent unit.

                                                 Direct Materials   Conversion      Total

As at beginning                               48000              105000       153000

Added during the period                91000               161000      252000

Costs to be accounted for             139000             266000    405000

Total equivalent units                     110,000             67,280

Cost per equivalent unit               1.26364           3.95363   5.21726

Note: Cost per equivalent unit = Costs to be accounted for / Total equivalent units

d. Reconciliation the total cost of work in process.

                                                 Direct Materials   Conversion    Total

Units as at end (A)                          89,000              89,000     89,000

Cost per equivalent unit (B)           1.26364              3.95363     5.21726

Percentage of completion (C)           100%                 52%

Total cost (A*B*C)                            112,464             182,974    295,437

Cost of closing WIP = Costs to be Accounted for - Costs Transferred Out

= 405000 - (21000 units * 5.21726)

= 405,000 - 109,562.46

= 295437.54

= $295,4378

Answer:

C. Both of the above

Explanation:

Insurance policy and repair order are both contracts.

The insurance policy is an agreement between the insurer (person or company) and the policyholder (the person who takes the cover). On the other hand, the repair order is also a contract because it is an agreement between the company who will provide the service repair and the customer who will receive the service.

As long as both parties consent to the agreement, are capable of doing what is asked in the agreement and that the agreement is legal, then it is considered a contract.

Answer:

a. 0.557 times

b. 8.72%

c. 0.16

Explanation:

a. Asset turnover = Net sales ÷ Average total assets

We will calculate the average total asset first

Average total asset = [Beginning total assets - ending total assets)] / 2

= [(930.9 + 920.1)] / 2

= 925.5

Asset turnover = 515.7/925.5

= 0.557 times

b. Return on assets = Net income/Average total assets

= 80.7/925.5

= 0.087196

= 0.087196 × 100

= 8.72%

c. Profit margin on sales = Net income/Net sales

= 80.7/515.7

= 0.16

Answer:

Explanation:

No injury or illness is ever an acceptable part of doing business. It reflects poorly on the company if they don't take the proper steps to prevent illness and injury. OSHA works hard to make sure work places are safe, and levy large fines if they don't meet safety requirements. In addition, if an injury or illness occurs the company can be sued, depending on the severity, the company could go out of business.

Answer:

Avanti's, Inc.

Bad Debts Expense = $4,170

Explanation:

a) Data:

Current assets section of the balance sheets of

Avanti's, Inc.,

at December 31, 2020 and 2019:   12/31/20       12/31/19

Accounts receivable,                      $183,835    $257,281

less allowance for bad debts of        $9,887       $17,439

Balance of Accounts receivable    $173,948    $239,842

Allowance for bad debts account

Account Details            Debit           Credit

Balance, 12/31/19                             $17,439

Accounts receivable  $11,722

Balance, 12/31/20         9,887

Bad debt expense                              4,170

Journal Entries:

Debit Bad Debts Expense $4,170

Credit Allowance for Bad Debts $4,170

To record bad debts expense for the period.

Answer:

States have a high duty to adhere to the federal laws and state rule as well, wherever it is applicable. But in case the state has unique requirement, it may enact and enforce its own law which suits the local population rather than use of federal law. When it comes to federal drug laws, the states have a responsibility to work along with the federal authorities and government to make sure that the laws are in place. This includes not bringing about conflicting laws.

Congress should allow the employers to set their own rules. For example, if an employer does not allow employees to drink during working hours, there is no problem with it. Similarly if an employer chooses not to hire anyone with visible tattoo on their body, then that is completely employers’ discretion. Similarly if the employers have company wide policy to avoid marijuana, then that is employers’ business. There are many NGOs where the employers do not allow smoking or recruit smokers. There is nothing wrong with it. Now, unless an employee has medical justification for consuming marijuana, the employer should be within their right to decide on action on the employee. This is why Congress should not interfere in the employer-employee relationship.  

Given that in absolute conflict, the federal laws trump the state laws, marijuana is not legal in any of the states even if the state law permits it. The only reason the US Government is not taking action against recreational marijuana in the mentioned states is because it is too cumbersome and the outcome is not that significant. There is not a great deal of state benefit by arresting the farmers growing marijuana or the people distributing it. Thus it is still illegal but the government is not acting upon it.

Answer:

Since the numbers are missing, I looked for a similar question:

"you forecast net income of $50,000 and ending assets of $500,000. Your firm's payout ratio is 10%. Your beginning stockholders equity is $300,000 and your beginning total liabilities are $120,000. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. What is you net new financing needed for next year?"

we must first determine the debt to assets ratio = $120,000 / ($300,000 + $120,000) = 0.2857

since total assets are expected to be $500,000, then total liabilities + equity will also = $500,000 (basic accounting equation)

since debt to equity ratio should remain constant, then:

total liabilities = $500,000 x 0.2857 = $142,850

total equity = $500,000 - $142,850 = $357,150

we can verify our calculations:

old debt to equity ratio = $120,000 / $300,000 = 0.4

new debt to equity ratio = $142,820 / $357,150 = 0.4

since your current equity = $300,000, you will need to raise $57,150

your current liabilities + future accounts payable = $120,000 + $10,000 = $130,000, therefore, you will need to issue debt for $142,850 - $130,000 = $12,850

Answer and Explanation:

The Journal entries are prepared below:-

1. Merchandise inventory Dr, $31,500

         To Accounts payable $31,500

(Being purchase of inventory on the account is recorded)

2. Merchandise inventory Dr, $635

          To Cash $635

(Being cash paid is recorded)

3. Accounts payable Dr, $1,500

            To Merchandise inventory $1,500

(Being return inventory is recorded)

4. Accounts payable Dr, $30,000

       To Merchandise inventory $900 ($30,000 × 3%)

       To Cash $29,100 ($30,000 × 97%)

(Being cash paid is recorded)

b. 1. Accounts receivable Dr, $31,500

                 To Sales $31,500

(Being sales is recorded)

2. Cost of goods sold Dr, $21,105

                  To Merchandise inventory $21,105

(Being cost of goods sold is recorded)

3. Sales return and allowances Dr, $1,500

             To Accounts receivable $1,500

(Being returns is recorded)

4. Merchandise inventory Dr, $1,005

To cost of goods sold $1,005

(Being returned goods is recorded)

5. Cash Dr, $29,100

   Sales discounts Dr, $900

                To Accounts receivable $30,000

(Being cash received is recorded)

Answer:

β2 should have a positive sign

Explanation:

The regression equation is:

βwght = β0+β1cigs+β2faminc+μ

The equation tells us that the birth weight of a child is dependent on factors like cigarette consumption and family income.

β1 should have a negative sign because smoking during pregnancy has an adverse effect on birth weight. So there would be a negative correlation between birth weight and cigarette consumption.

β2 should have a positive sign. This is because while pregnant, a family with more income has the ability to provide better prenatal care and also better nutrition to the expectant mother. Therefore we have a positive correlation.

Answer:

The cost of the depreciation of plant's machinery is considered a variable cost because machinery uses an accelerated depreciation method for book and income tax purposes

Explanation:

A variable cost is an expense that is proportional to the production output. That is variable costs increase or decrease with respect to a company's production. This cost rise as production rises and falls as production falls. Costs of raw materials and packaging are examples of variable costs.

Here,

Corporation, a manufacturing​ company, is analyzing its cost structure in a project to achieve some cost savings.

The cost of the depreciation of plant's machinery is considered a variable cost because machinery uses an accelerated depreciation method for book and income tax purposes

Answer:

The correct option: $14 because both the fee from the customer and the producer are earned

Explanation:

Based on the information given we were told that Tickets Now charges each of their customer a fee amount of $4 per ticket in which they receives the amount of $10 per ticket from the producer which means that the amount of revenue Tickets should Now recognize for each Riverdance ticket they sold will be $14 ($10 per ticket +$4 per ticket) because both the fee from the customer and the producer are earned.

Answer:

Windsor Solar Panels, Inc.

Date        Account Titles and Explanation             Debit       Credit

July 1       Accounts Receivable (Wildhorse Co.) $128,000

              Sales Revenue                                                  $128,000

To record the sale of solar panels, terms 3/15, n/30.

July 12    Accounts Receivable (Novak Corp.)     $82,000

              Sales Revenue                                                   $82,000

To record the sale of solar panels, terms  4/10, n/60.

July 18   Cash Account                                       $78,720

             Cash Discount                                        $3,280

             Accounts Receivable (Novak Corp.)                 $82,000

To record the receipt of payment from Novak Corp.

July 20 Sales Allowances                                   $2,100

            Accounts Receivable (Wildhorse Co.)                $2,100

To record the credit allowance granted to Wildhorse Company.

July 29 Cash Account                                     $125,900

            Accounts Receivable (Wildhorse Co.)                $125,900

To record the receipt of payment from Wildhorse Company

July 31  "No Entry"

Explanation:

Windsor Solar Panels, Inc. will record the above journal entries to initially record the business transactions that take place within the period.  These journal entries determine the accounts to be debited and the ones to be credited in the general journal.

Answer:

True

Explanation:

Public disclosure entails making information or data easily accessible and available to all interested parties. Public disclosure may be in the form of statements released to the general public through media,  publication in an official bulletin, website, or special report document.

Public disclosure laws are regulations requiring businesses to provide full information about their products. The information provided includes ingredients or components of a product and any hazards that may arise from its usage. Public disclosure laws exist to protect consumers.  

Answer:

The per unit transportation costs increase as the units sold decrease.

The per unit variable component of transportation costs remains constant.

Explanation:

mixed costs are costs that share both a fixed component and a variable one, e.g. transportation costs generally are mixed because depreciation, insurance and sometimes even maintenance costs are fixed, while gasoline and drivers' wages are variable.

If total units transported decrease, then the fixed part of transportation costs will increase on a per unit basis. Even if the variable part remains stable, total costs per unit will still increase.

We can plug in some numbers:

Fixed expenses = $1,000 per month

variable costs = $2 per package

total packages sent during month 1 = 500

total costs = $1,000 + ($2 x 500) = $2,000

costs per unit = $4

if suddenly the number of packages delivered drops to 300

total costs = $1,000 + ($2 x 300) = $1,600

costs per unit = $5.33

a 40% decrease in the number of packages delivered resulted in a 33.33% increase in costs per unit delivered.

Answer:

I want to know the sides of a pizza if the width is 9 inches larger than the height and the area is 250 squared inches.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.

Explanation:

To solve this you just have to think on the unknown value and represent it as "X" in the first problem we do not know the length or width but we have a values given between them, so if "x" is the height then the width becomes "x+9" so those two values multiplied become the area.

[tex]x(x+9)=250\\x^{2} +9x=250\\x^{2} +9x-250=0\\[/tex]

With this you just keep solving the others.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

2m as an area and the height is "x"

[tex]x(x+-5)=2\\x^{2} +.5x=2\\x^{2} +.5x-2=0\\[/tex]

My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.

57,600 is the area and width will be "x"

[tex]x(x+200)=57,600\\x^{2} +200x=57,600\\x^{2} +200x-57,600=0\\[/tex]

Answer and Explanation:

The Preparation of the July income statement for Focault is shown below:-

Focault Inc.

Income Statement

For the Month Ended July 31

Particulars                              Amount

Sales                                        $2,121,900

Cost of goods sold                 $1,185,400

Gross profit                             $936,500

Selling and administrative expenses:  

Selling expenses             $509,700

Administrative expenses $189,700

Total selling and administrative

expenses                                 $699,400

Net operating income              $237,100

b. The computation of inventory balances at the end of the first month of operations is shown below:-

Particulars                                                Amount

Materials inventory, July 31                    $83,800

($598,700 - $514,900)  

Work in process inventory, July 31       $50,800

($514,900 + $444,000 + ($444,000 × 70%) - $1,218,900)  

Finished goods inventory, July 31          $33,500

($1,218,900 - $1,185,400)

Answer:

$46,900,000

Explanation:

Calculation for the erosion cost of adding the mid-range camper

Erosion cost = [(1,100 - 850) × $140,000] + [(2,200 -2,000) × $59,500]

Erosion cost =(250×$140,000)+(200×$59,500)

Erosion cost =$35,000,000+$11,900,000

Erosion cost = $46,900,000

Therefore the erosion cost of adding the mid-range camper will be $46,900,000

Answer:

A.

April $102,400

May $124,000

June $136,800

B. $13,800

Explanation:

a. Calculation to Complete the schedule of cash payments for inventory purchases

April May June

Payment for current accounts payable

$95,400 $113,400 $124,200

Payment for previous accounts payable

$7,000 $10,600 $12,600

Total Budgeted payments for inventory

$102,400 $124,000 $136,800

Workings:

Payment for current accounts payable

April 95,400

May 126,000*90% =113,400

June 138,000*90=124,200

Payment for previous accounts payable

April 7,000

May 106,000*10%=10,600

June 126,000*10%=12,600

b. Calculation to Determine the amount of accounts payable that the company will report on its pro forma balance sheet

Accounts payable amount=$ 138,000 June purchase amount x 10% to be paid in July

Account payable amount=$13,800

Therefore the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter will be $13,800

Answer:

Reinvested will be "$ 2,937". The further explanation is given below.

Explanation:

According to the IRS, on either the order of the corresponding lender, the cash dividend earned or reinvested seems to be taxable during the same year.

Income tax on dividend will be:

⇒  [tex]19,580\times 15 \ percent[/tex]

⇒  [tex]2,937[/tex] ($)

When the amount is reinvested, the income tax will be:

⇒  [tex]19,580\times 15 \ percent[/tex]

⇒  [tex]2,937[/tex] ($)

Answer:

b turn off by power button

Answer:

$132,300

Explanation:

The total manufacturing costs for the month can be calculated as follows

Direct labor + indirect materials + factory manager salary + indirect labour + direct materials + depreciation on factory equipment

= 40,600 + 16,200 + 8,200 + 10,000 + 7,300 + 41,500 + 8,500

= $132,300

Hence the total manufacturing costs if $132,300