Prepare the income statement for the year ended December 31, 2017. 1&2. The balance in the Prepaid Rent account represents rent for December. Its production output is sent to its warehouse for shipping. The Prepaid Insurance account had a $6,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. (WTI’s accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.). Q5. Of these units, 31,200 were in process at the beginning of the period. They are paid on Fridays for work completed Monday through Friday of the same week. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Required: Salary expenses of $990 have been earned by supervisors but not paid as of December 31. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage, (2) direct labor incurred (3) overhead allocation, (4) goods transfer from production to finished goods, and (5) credit sales. Answers to connect accounting homework chapter 4 If you are not already a member of the successful allhomeworktutors. Of these transferred units, 68,000 were in process in the production department at the beginning of April and 272,000 were started and completed in April. Debit Work in Process Inventory $160,000; credit Raw Materials Inventory $160,000. An analysis of the company’s insurance policies showed that $1,900 of unexpired insurance coverage remains. Also, its beginning inventory of $174,580 consists of $151,350 of direct materials cost and $23,230 of conversion costs. Prepare the statement of retained earnings for the year ended December 31, 2017. Depreciation on the company’s equipment for 2017 is computed to be $11,000. Debit Work in Process Inventory $74,000; debit Factory Overhead $33,000. Accounting Chapter 3 Test A. ), Which of the five companies is the most profitable according to the profit margin ratio? On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,140 tuition per month payable at the end of the class. Near year-end, the two employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. Wage expenses of $5,000 have been incurred but are not paid as of December 31, 2017. The journal entries to record the labor would include: Q4. New Year’s Day. The December 31, 2017, physical count showed $496 of supplies available. Q1. April’s beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. Wage expenses of $1,000 have been incurred but are not paid as of December 31, 2017. The Prepaid Insurance account had a $7,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. A $680,000 note payable requires 9.7% annual interest, or $5,497, to be paid at the 20th day of each month. McGraw Hill Education CISSP Practice Exams. The following information describes production operations for October. (January 1) was an unpaid holiday. At the end of March, 15,000 additional units were in process in the production department and were 80% complete with respect to materials. The next payday is May 3. New Year’s Day. PLAY. McGraw Hill Education CISSP Practice Exams. Q6. The Retained Earnings account balance is $130,280 at December 31, 2016. 1. They are paid on Fridays for work completed Monday through Friday of the same week. M&R Company hired a firm to provide lawn services at a monthly fee of $590 with payment occurring on the 15th of the following month. Test. On April 1, the company retained an attorney for a flat monthly fee of $2,500. The class started on October 15, but no payment has yet been received. Prepare the year-end adjusting entry for wages expenses. Human Resource Management Assignment Help, Units in beginning work in process (all completed during July), Predetermined overhead rate (based on direct labor), Goods transferred from bagging to finished goods. The production department in a process manufacturing system completed 78,000 units of product and transferred them to finished goods during a recent period. Prepare adjusting journal entries for the year ended (date of) December 31, 2017, for each of these separate situations. Q2. In most process costing systems, direct materials are added at the beginning of the process while conversion costs are added evenly throughout the manufacturing process. Q1. Its Welding Department completed and transferred out 100,000 units during the current period. Connect Managerial Accounting Chapter 3. The left number column is prepared before any adjusting entries are recorded, and the right column includes the effects of adjusting entries. The interest revenue will be received on January 15 following the company’s year-end. Compute the number of units transferred to finished goods. The above three separate situations require adjusting journal entries to prepare financial statements as of April 30. Q5. Pablo Management has seven part-time employees, each of whom earns $125 per day. Q12. Determine the equivalent units of production for the Welding Department for direct materials and conversion costs assuming the weighted average method. The company’s revenue for the month totaled $470,000 from credit sales, and its cost of goods sold for the month is $258,000. Q4. When raw materials are purchased on account for use in a process costing system, the corresponding journal entry that should be recorded will include: Q7. Managerial Accounting. Q1. Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. The interest was last paid on April 20, and the next payment is due on May 20. At the end of April, 86,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion. A company uses the weighted-average method for inventory costing. General Amount Column. 1. The subsequent entry during May to record payment of the accrued expenses. (Round “Cost per EUP” to 2 decimal places.). STUDY. Spell. Spell. Write. Q1. WTI’s two employees are paid weekly. Answers to connect accounting homework chapter 4 If you are not already a member of the successful allhomeworktutors. Essay On Modern Technology In Agriculture answer, photoreading 4th edition, chapter 25 section 2 the war for europe and. a. When the cash was received, the Unearned Training Fees account was credited. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end. Connect Managerial Accounting Chapter 3. Created by. The following is the adjusted trial balance of Wilson Trucking Company. Beginning work in process inventory is 20% complete with respect to conversion. Debit Factory Payroll Payable $160,000; credit Cash $160,000. Near year-end, the two employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. Exercise 3-3 Preparing adjusting entries LO P1. Its unadjusted trial balance as of December 31, 2017, follows. PLAY. Test. The middle column shows a blank space for each income statement effect of the eight adjusting entries a through g (the balance sheet part of the entries is not shown here). As of April 30, $1,832 of interest expense has accrued. Flashcards. The production department in a process manufacturing system completed 78,000 units of product and transferred them to finished goods during a recent period. During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Pablo Management has two part-time employees, each of whom earns $110 per day. Prepare the department’s equivalent units of production with respect to direct materials under each of three separate assumptions using the weighted-average method for process costing. Grade 3 Quiz Answer Key Treasures Macmillan McGraw Hill. Companies often use a combination of a process costing and job order costing systems. Production involves packaging bark chips in plastic bags in a bagging department. An analysis of the company’s insurance policies showed that $1,220 of unexpired insurance coverage remains. Following are Nintendo’s revenue and expense accounts for a recent March 31 fiscal year-end (yen in millions). The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts. The recording of debit and credit parts of a transaction. Prepare the journal entry to record payment of the employees’ wages on Friday, January 4. Compute the number of units transferred to finished goods. General Amount Column. Learn. Chapter Readiness … Answers To Mcgraw Hill Networking Quiz ... 2018 - pdf mcgraw hill connect managerial accounting answers chapter 8 quizzes will be posted online through mcgraw hill connect 2014 12 43 pm mcgraw hill connect' 'grade 4 quiz … Which of the following products is most likely to be produced in a process operations system?