47. When a firm purchases supplies for its business:
Select one:
a. an adjustment will probably be required as supplies areused.
b. the supplies expense account should always be debited.
c. the supplies account should always be debited.
d. either the supplies account or the supplies expense accountshould be credited.
(I know it can be either Option C or Option A... and I amgetting conflicting answers from others... please choose 1 if youare 100% sure and explain your reason why it can not be the otheroption.. thanks.)
47. When a firm purchases supplies for its business:
Select one:
a. an adjustment will probably be required as supplies areused.
b. the supplies expense account should always be debited.
c. the supplies account should always be debited.
d. either the supplies account or the supplies expense accountshould be credited.
(I know it can be either Option C or Option A... and I amgetting conflicting answers from others... please choose 1 if youare 100% sure and explain your reason why it can not be the otheroption.. thanks.)
Related questions
i only need help with questions : 12, 14, 16,17c, 17d
1. (5 points) Make a list of materials needed tomanufacture one finished good. Include the following criteria:material (including block size), color, number required, cost perblock, and total cost per type of block. Determine the totalmaterial cost to manufacture one finished good. Include packagingfor the finished product.
2. (4 points) Determine how many direct labor employeesare necessary to meet demand. You do not intend to pay overtime.Laborers work eight hours a day Monday through Friday, which doesnot include time for lunch since it is not paid. They receive twoweeks of paid vacation, but six paid holidays. If your calculationresults in a partial person, remember that you will have to roundup to a whole number. You do not intend to hire any part-timelabor.
3. (3 points) Determine the annual cost fordirect labor (including benefits). Do notround.
4. (2 points) What is the direct labor costper finished product? Do not round.
5. Cost identification.
The following accounts are to be used in 5a-5e:
Account Name | Annual Amount |
Office Supplies | $500 |
Factory Utilities | $2400 |
Sales Commissions | $40000 |
Factory Equipment Depreciation | $500 |
Factory Rent | $5000 |
Advertising | $12000 |
Factory Managerâs Salary | $35000* |
Indirect Labor | $35000 |
Office Utilities | $600 |
Factory Insurance | $3600 |
Office Maintenance (Annual Contract) | $200 |
Sales Salaries | $60000* |
Office Equipment Depreciation | $1200 |
Indirect Materials | $5000 |
Freight-Out | $200000 |
Factory Equipment Repairs (based on expected quarterlyservice calls) | $800 |
*Includes medical benefits.
- (4 points) From the above list, select four variablemanufacturing overhead accounts.
- (4 points) From the above list, select four variableselling expense or administrative expense accounts.
- (4 points) From the above list, select four fixed sellingexpense or administrative expense accounts.
- (4 points) From the above list, select four fixedmanufacturing overhead accounts.
- (4 points) Fill out the attached spreadsheet with theinformation given in 5a-5d. That means you will have to keepreading these discussion areas.
Make sure your answers for the following questions reflectall of the costs on the 5e spreadsheet.
6. (3 points) What is the total manufacturingoverhead?
7. (5 points) Create a Cost of Goods ManufacturedSchedule. Do not round.
8. (4 points) What is the predetermined overhead ratebased on direct labor cost? Round to two decimal places and makesure your answer is in the correct format.
9. (4 points) What is the total manufacturing cost perunit? Do not round.
10. (5 points) Calculate the projected net income/(loss)for the first year. This should be in the form of an simple incomestatement including captions for revenue, cost of goods sold (donot round.), gross profit, operating expenses, and netincome/(loss). All operating expenses must be listed individually.Do not round.
11. Cost Identification
a. (2 points) What is the total variable cost?
b. (1 point) What is the total fixed cost?
- (5 points) How many finished units will you have to sellannually to break even? Do not round variable costs or contributionmargin. You will have to round the number of units to break even,since you cannot sell a partial unit. Remember to always round upfor break even, no matter what the decimal.
- ( 7 points) Using the break even or contribution marginequations, compute how many units need to be sold to earn a netincome of $60000. Create a C-V-P income statement to prove yourcalculations. Show all of your work to get the C-V-P incomestatement. Do not round variable costs or contribution margin. Youwill have to round the number of units to break even, since youcannot sell a partial unit. Remember to always round up for breakeven, no matter what the decimal.
- (4 points) Create a flexible manufacturing overheadbudget at a level of 110,000 finished units.
- (5 points) Prepare a flexible budget report given thatactual production was 110,000 finished units.
Actual overhead for the year included:
Factory Repairs $950
Factory Utilities $2430
Indirect Labor $36750
Indirect Materials $5700
Freight-Out $215000
Office Supplies $510
Commissions $43000
Office Utilities $750
Advertising $12000
Office Maintenance $300
Sales Salaries $60000
Office Depreciation $1200
Factory Depreciation $500
Factory Rent $5100
Manager's Salary $ 35000
Factory Insurance $3800
- (3 points) Sales per quarter are expected to be 10,000units, 30,000 units, 40,000 units, and 20,000 units, respectively.Prepare a correctly formatted sales budget.
- There is a shortage of large rectangular blocks! (None atall.)
a. (3 points) What is the new total product cost per unitif two small rectangular blocks are substituted for every largerectangular block? Do not round.
b. (5 points) Prepare an income statement to show the newnet income/(loss) with sales totaling 100,000 units. Use the newtotal product cost in Q17a. Do not round.
c. (5 points) How many finished units need to be soldannually to break even? Do not round variable costs or contributionmargin. You will have to round the number of units to break even,since you cannot sell a partial unit. Remember to always round upfor break even, no matter what the decimal. Use the new totalproduct cost in Q17a.
d. (5 points) Create a C-V-P income statement to proveyour break-even. Do not round variable costs or contributionmargin. You will have to round the number of units to break even,since you cannot sell a partial unit. Remember to always round upfor break even, no matter what the decimal. Use the new totalproduct cost in Q17a.
