(Solved):Q: Debt Issued at a…

Question

Debt Issued at a Discount (Straight Line)

On January 1, 2020, Drew Company issued $350,000, 5-year bonds for $320,000. The stated rate of interest was 7% and interest is paid annually on December 31.

Required:

Prepare the necessary journal entry on December 31, 2021, assuming the straight-line method is followed.

(Solved):Q: Bags R Us manufa…

Question

Bags R Us manufactures back packs for schools. The business uses a perpetual inventory system
and has a highly labour intensive production process, so it applies manufacturing overhead based
on direct labour hours. Any overhead variance is closed out to Cost of Goods Sold.
The business’s pre-determined overhead application rate for 2018 was computed from the
following data:
Total estimated factory overheads
Total estimated direct labour hours
$4,200,000
35,000
During the first month of 2018, the business recorded the following transactions.
i) Purchased materials on account, $500,000
ii) Incurred manufacturing wages of $1,065,000
iii) Issued direct materials and used direct labour in manufacturing
Direct Materials Direct Labour Direct Labour Hours
Job 401 $100,000 $220,000 1,200
Job 402 81,000 190,000 1,000
Job 403 90,000 205,000 1,100
Job 404 150,000 290,250 1,800
iv) Issued indirect materials to production, $80,000
v) Charged indirect manufacturing wages to production, $159,750
vi) Depreciation expense on factory equipment used on the different jobs, $300,000
vii) Other overhead costs incurred on jobs 401 to 404 amounted to $112,750
viii)Applied factory overhead to the various jobs using the pre-determined factory overhead rate.
ix) Finished Jobs 401 – 403 and transferred to the finished goods inventory account
x) Shipped Job 401 and 402 and billed customers at a margin of 25% on cost.

Required:
a) Compute Bags R Us’ predetermined manufacturing overhead rate. 
b) Calculate the total manufacturing cost for each job. 
c) Using the total figures, record the transactions in the general journal.
d) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account and
state the balance on the account before closing the account. Show the journal entries necessary
to dispose of this variance.
e) What is the balance in the Cost of Goods Sold account after the adjustment?
f) Calculate the gross profit earned by Bags R Us for the month. 
g) Open T-accounts for Work in Process Inventory and Finished Goods Inventory. Post the
appropriate entries to these accounts & determine the ending account balances. Assume that
the beginning balances were zero.

Please answer sub part d e f and g

(Solved):Q: On May 27, Kick …

Question

On May 27, Kick Off Inc. reacquired 3,000 shares of its common stock at $54 per share. On August 3, Kick Off sold 1,700 of the reacquired shares at $57 per share. November 14, Kick Off sold the remaining shares at $53 per share.

Journalize the transactions of May 27, August 3, and November 14. For a compound transaction, if an amount box does not require an entry, leave it blank.

May 27      
       
Aug. 3      
       
       
Nov. 14      
       
       

(Solved):Q: Sage Laundromat …

Question

Sage Laundromat is trying to enhance the services it provides to customers, mostly college students. It is looking into the purchase of new highefficiency washing machines that will allow for the laundry’s status to be checked via smartphone. Sage estimates the cost of the new equipment at $159,000. The equipment has a useful life of 9 years. Sage expects cash fixed costs of $80,000 per year to operate the new machines, as well as cash variable costs in the amount of 5% of revenues. Sage evaluates investments using a cost of capital of 10%.

Q. Calculate the payback period and the discounted payback period for this investment, assuming Sage expects to generate $140,000 in incremental revenues every year from the new machines.

(Solved):Q: Ch. 8 Homework B…

Question

Ch. 8 Homework Budgeted Total Sales/Budgeted Production

Please solve and explain the answers to the following problem

Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.

1) 1. Determine Shadee's budgeted total sales for May and June.

2) Determine Shadee's budgeted production in units for May and June.

(Solved):Q: Sentax Corporati…

Question

Sentax Corporation is an international manufacturer of fragrances for women. Management at Sentax is considering expanding the product line to men’s fragrances. From the best estimates of the marketing and production managers, annual sales (all for cash) for this new line are 2,000,000 units at $100 per unit; cash variable cost is $50 per unit; and cash fixed costs are $18,000,000 per year. The investment project requires $100,000,000 of cash outflow and has a project life of 4 years. At the end of the 4-year useful life, there will be no terminal disposal value. Assume all cash flows occur at year-end except for initial investment amounts. Men’s fragrance is a new market for Sentax, and management is concerned about the reliability of the estimates. The controller has proposed applying sensitivity analysis to selected factors. Ignore income taxes in your computations. Sentax’s required rate of return on this project is 16%.

Q. Calculate the effect on the net present value of the following two changes in assumptions. (Treat each item independently of the other.)

q1 (i). 20% reduction in the selling price

(Solved):Q: Kindmart is an i…

Question

Kindmart is an international retail store. Kindmart’s managers are considering implementing a new business-to-business (B2B) information system for processing merchandise orders. The current system costs Kindmart $2,000,000 per month and $55 per order. Kindmart has two options, a partially automated B2B and a fully automated B2B system. The partially automated B2B system will have a fixed cost of $6,000,000 per month and a variable cost of $45 per order. The fully automated B2B system has a fixed cost of $14,000,000 per month and a variable cost of $25 per order. Based on data from the past two years, Kindmart has determined the following distribution on monthly orders:

Monthly Number of Orders          Probability

        300,000                                  0.25 

      500,000                                      0.45 

      700,000                                    0.30 

Q1. Prepare a table showing the cost of each plan for each quantity of monthly orders. 

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