The final amounts were in for Marigold Corp's foed-MOH costs. The total fixed-MOH costs consisted of $3,100 of insurance (all prepaid), $4,200 in accrued supervisor salaries, $4,600 of factory-related depreciation, and $1,400 in property taxes (paid in cash). Marigold's applied fixed-MOH costs amounted to $14,400 for the year. Further, both fixed-MOH variances were favorable, the price variance being $300 and the volume variance being $800. Record the following journal entries: (1) to recognize the actual fixed-MOH costs incurred, (2) the allocation of fixed-MOH to production, and (3) the final recognition of specific fixed-MOH variances (while closing out the control account). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no-entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries)

The final amounts were in for Marigold Corp's foed-MOH costs. The total fixed-MOH costs consisted of $3,100 of insurance (all prepaid), $4,200 in accrued supervisor salaries, $4,600 of factory-related depreciation, and $1,400 in property taxes (paid in cash). Marigold's applied fixed-MOH costs amounted to $14,400 for the year. Further, both fixed-MOH variances were favorable, the price variance being $300 and the volume variance being $800. Record the following journal entries: (1) to recognize the actual fixed-MOH costs incurred, (2) the allocation of fixed-MOH to production, and (3) the final recognition of specific fixed-MOH variances (while closing out the control account). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no-entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries)

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....

See similar textbooks

Similar questions

Excess Construction Corp. has a $16 million contract to construct a building. The company estimates $10.4 million in costs to construct the building and an expected gross profit of $5.6 million. During the current year, the company incurred $3,120,000 of costs on the contract. Under the percentage-of-completion method, how much will Excess Construction Corp. report as revenue in the current year?
The following information pertains to equipment constructed by a firm for its own use. The construction is finished. Materials used in construction, P 400,000 Labor cost during construction, P 170,000 Fringe benefits on above labor, P 60,000 Incremental overhead due to construction, P 80,000 Interest expense on debt during construction, P 20,000 The interest expense meets the requirements for interest capitalization. The market value of the equipment immediately after construction was completed was P650,000. QUESTION: What is the loss on construction incurred by the firm? zero P 60,000 P 80,000 P 20,000
Gem construction company was working on a contract and it uses the percentage-of- completion method and it was working on a contract for P3,700,000. Other details for the year as follows: Billings during the year=P1,650,000 Costs incurred during the year=P1,800,000 Estimated costs to complete as of December 31=P1,200,000 Collections during the year=P975,000 Find the reporting gross profit for the year.
How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipment
During year 1, Baird Manufacturing Company Incurred $65,800,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in year 1. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $78 per unit. Packaging, shipping, and sales commissions are expected to be $7 per unit. Baird expects to sell 1,400,000 batteries before new research renders the battery design technologically obsolete. During year 1, Baird made 432,000 batteries and sold 405,000 of them. Required a. Identify the upstream and downstream costs. b. Determine the year 1 amount of cost of goods sold and the ending Inventory balance that would appear on the financial statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Baird desires to earn a profit margin that is equal to 30 percent of the total cost of developing, making, and…
1. During its first year of operations, Beta Company paid $15,000 for direct material, $16,000 in wages for production workers, and $20,000 wages for administrative and sales personnel. Lease payments and utilities on the administrative building and production facilities amounted to $5,000 and $7,000, respectively. General, selling, and administrative expenses were $6,000. The company owns a delivery car and manufacturing equipment. The annual depreciation on the car is $ 1,000. The original cost of the equipment is $10,000 and has a salvage value of $2,000 after 4 years. The company produced 8,000 units and sold 6,000 units at a price of $15 a unit. The average cost to produce one unit is which of the following amounts? a. $5 b. $10 c. $9.20 d. $11.50
Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: Rent on manufacturing facility $ 250,000 Office manager's salary 150, 000 Wages of factory machine operators 110,000 Depreciation on manufacturing equipment 50,000 Insurance and taxes on selling and administrative offices 30, 000 Direct materials purchased and used 170,000 Based on the above information, which of the following would not be treated as a product cost: Multiple Choice Depreciation on manufacturing equipment Wages of factory machine operators Office manager's salary Rent expense incurred on manufacturing facility Su Ac Su
During year 1, Adams Manufacturing Company incurred $118,900,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in year 1. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $40 per unit. Packaging, shipping, and sales commissions are expected to be $19 per unit. Adams expects to sell 2,900,000 batteries before new research renders the battery design technologically obsolete. During year 1, Adams made 432,000 batteries and sold 393,000 of them. Required a. Identify the upstream and downstream costs. b. Determine the year 1 amount of cost of goods sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Adams desires to earn a profit margin that is equal to 25 percent of the total cost of developing, making, and…
uniper Design Limited of Manchester, England, provides design services to residential developers. Last year, the company had net operating income of $470,000 on sales of $1,200,000. The company’s average operating assets for the year were $1,400,000 and its minimum required rate of return was 11%. Required: Compute the company’s residual income for the year.
The Silverman Company spent $14,000 on direct supplies and $19,000 on the salary of production personnel in its first year of business. General, selling, and administrative costs came to $8,000 while lease payments and utilities for the production facilities came to $17,000. At a cost of $15.00 per unit, the company produced 5,000 units, of which 3,000 were sold. When was the year's operating net profit for Silverman? $7,000 $12,000 $28,000 $37,000
During year 1, Perez Manufacturing Company incurred $117,500,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in year 1. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $64 per unit. Packaging, shipping, and sales commissions are expected to be $11 per unit. Perez expects to sell 2,500,000 batteries before new research renders the battery design technologically obsolete. During year 1, Perez made 434,000 batteries and sold 395,000 of them. Fill in the GAAP-based income statement for year 1. Use the sales price = 93.75 PEREZ MANUFACTURING COMPANY Income Statement Sales revenue Cost of goods sold Gross margin Depreciation expense Inventory holding expense Research & development expense Net income (loss) 0 $0 F
Sheridan Company incurs the following costs in purchasing equipment: invoice price, $40,500; shipping, $1,025; installation and testing, $1,600; one-year insurance policy, $2,750.What is the cost of the equipment?