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Sagot :
Answer:
A. Production and Sales Cost Classification:
Variable
a. Ink used for screen printing
c. Thread
d. Electricity costs of $0.038 per kilowatt-hour
h. Color dyes for producing different colors of T-shirts
k. Salaries of internal pattern designers
l. Hourly wages of sewing machine operators
n. Cotton and polyester cloth
Mixed
b. Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used
o. Maintenance costs with sewing machine company (the cost is $2,000 per year plus $0.001 for each machine hour of use.)
Fixed
e.Janitorial costs of $4,000 per month Fixed
f. Advertising costs of $12,000 per month
g. Accounting salaries
i. Salary of the production supervisor
j. Straight-line depreciation on sewing machines
m. Property taxes on factory, building, and equipment
B. The materials budget for the year is:
= $1,505,384.
C. James, Kirk, and Gleason Partnership
Debit Land $225,000
Credit Land revaluation gain $225,000
To record land revaluation.
a. Debit Land Revaluation gain $225,000
Credit James, capital $75,000
Credit Kirk, Capital $150,000
To share the revaluation gain.
b. Debit Cash $90,000
Credit Gleason, Capital $90,000
To record Gleason's admission as a partner.
Debit James, Capital $30,000
Debit Kirk, Capital $60,000
Credit Cash $90,000
To reduce James and Kirk's capital accounts.
D. France Company
Income from operations = $46,810
E. Adams Company:
Account Dollar Change Percent Change
Cash $20,000 40%
Accounts Receivable ($9,600) (12%)
Explanation:
a) Data and Calculations:
A) Variable costs vary in total and are fixed per units. Fixed costs vary per units but are fixed in total within the relevant production capacity. Mixed costs have variable and fixed costs combined.
B) Magnolia, Inc.
Budgeted production of comforters for this year = 31,800
Materials required by each comforter = 7 yards
Total materials required for production =222,600 (31,800 * 7)
Beginning inventory = 5,320 yards
Ending balance = 4,100 yards
Total materials to be bought = 221,380 (222,600 + 4,100 - 5,320)
Material costs $6.80 per yard
Materials budget for the year = $1,505,384 (221,380 * $6.80)
$_______
C) Gleason invested $90,000 in the James and Kirk partnership for ownership equity of $90,000.
Land $225,000
Land revaluation $225,000
a. Land Revaluation $225,000
James, capital $75,000
Kirk, Capital $150,000
b. Cash $90,000 Gleason, Capital $90,000
James, Capital $30,000 Kirk, Capital $60,000 Cash $90,000
D) France Company
Contribution margin ratio = 37%
Sales $413,000
Contribution margin = $152,810 ($413,000 * 37%)
Fixed costs $106,000
Income from operations = $46,810
E) Adams Company:
Current Year Prior Year
Cash $70,000 $50,000
Accounts receivable (net) 70,400 80,000
Account Dollar Change Percent Change
Cash $20,000 40%
Accounts Receivable ($9,600) (12%)
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