Cash purchases | Gallons & Bottles | 30,000.00 | Loan to suppliers (credit terms – 30 days) | Office supplies | 3,000.00 | Cash purchases | Miscellaneous expenses | 1,500.00 | Cash purchases | TOTAL | 94,500.00 | | 6. Using the accounting equation: Assets=Liabilities + Equity, the above transactions are accounted as follows: | ASSETS | = | LIABILITIES | + EQUITY | INITIAL INVESTMENTS | 20,000 | = | | 20,000 | COST OF LAND (50 sq. m. x P4,000) | 200,000 | = | | 200,000 |
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underlying assumption changes. The advent of the electronic spreadsheet has greatly increased the ability to explore the effect of alternative assumptions at minimal cost. CVP is one of the most widely used software applications in the management accounting area. In CVP analysis, gross margin is a less-useful concept than contribution margin. Do you agree? Explain briefly. Yes, gross margin calculations emphasize the distinction between manufacturing and nonmanufacturing costs (gross margins
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M17-16 a. Process. A continuous manufacturing process. b. Process. A continuous manufacturing process (may be job order if processed in batches for specific customers). c. Job order. Ordinarily manufactured in batches for particular combinations of size, style and color. If batches are very large, process costing could be used. d. Job order. Ordinarily manufactured one at a time, but modern technology permits some mass producing of modular homes; this could permit process costing
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Mendel Paper Company Kamiyon Fields BUS 630 Managerial Accounting Instructor: Frederick Seiler June 8, 2015 Mendel Paper Company Question One When it comes to the computer paper, they have estimated 30,000 units in sales with a material cost of 6 dollars. Also, 14 dollars is the selling price. To find the estimated contribution margin, must subtract the variable cost from the sales ((14 times the 30000 units)-(6 times the 30000 units)). So, the contribution margin for the computer paper
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standards are viewed as defining a function, m, from H into the real line such that m(8) m(77') That is, the standards if and only if 77R77'. are used to single out a most preferred alternative. Using the standards, we are able to compare any two accounting alternatives and decide which of the two is superior or whether they are equally desirable. Presumably, the comparisons are also transitive. One way of describing such a choice process, which we adopt, is to view the standards as providing a hypothetical
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To begin, download the practice Midterm Exam from Doc Sharing to access questions and topics for review. For multiple-choice questions, please explain why the answer chosen is correct, and why the other choices would not be correct. Please support your response. Let's begin with the questions on Page 1. Page 1 1. Indirect labor is a part of: B. Conversion cost. Labor that cannot be physically traced to particular product is treated as indirect labor and as manufacturing overhead. Conversion
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This report is based on Pittman Company which manufactures telecommunication equipment. It is also included financial matter of the company as well. In the report, it has been given the company’s Budgeted Income Statement for the year ended by 31st of December. In this report, commission rate, Break Even Point in Dollar (BEP in $) and Contribution Margin (CM) has been given as the main calculations. Furthermore, every calculation is conducted with comments which can tell the company’s expenses
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9-6 Case 1. Assume that $300,000 of the fixed overhead cost can be reduced (avoided). The revised cost sheet will be as follows: Direct materials ($40 per robot) $800,000 Direct labor ($30 per robot) 600,000 Variable overhead ($6 per robot) 120,000 Allocated fixed overhead 200,000 Total $1,720,000 Cost of purchase from Chen Inc. $1,800,000 Saving in production at our place $80,000 Hence, the robots should not be purchased from Chen Inc. Case 2. Assume that none of the fixed overhead
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Prob. 2–3A 1. JOURNAL Page 1 Post. Date Description Ref. Debit Credit 2012 April 1 Cash 11 17,000 Kathleen Alvarez, Capital 31 17,000 2 Rent Expense 53 3,400 Cash 11 3,400 6 Equipment 16 10,000 Accounts Payable 22 10,000 8 Truck 18 21,000 Cash 11 2,000 Notes Payable 21 9,000 10 Supplies 13 1,800 Cash 11 1,800 12 Cash 11 13,000 Fees Earned 41 13,000 15 Prepaid Insurance 14 1,800 Cash 11 1
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E15-4 Analyze costs of manufacturing and determine missing amounts. (LO 2, 6), AN Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Case A Case B Case C Direct materials used $ (a) $ 83,000 $ 63,150 Direct labor 50,000 140,000 (h) Manufacturing overhead applied 42,500 (d) (i) Total manufacturing costs 145,650 (e) 213,000 Work in process 1/1/14 (b) 15,500 18,000 Total cost of work in process 201,500 (f) (j) Work in
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