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- ACC 300 Week 3 Individual Assignment Part I
- Complete course guide available here - http://entire-courses.com/ACC-300-Week-3-Individual-Assignment-Part-I
- In the work ACC 300 Week 3 Individual Assignment Part I you will find overview of the following parts:
- Cash Basis - Income Statement
- Accrual Basis - Income Statement
- Business - Accounting
- ACC 422 All Week 3 Assignments - Individual WileyPlus assignment
- Includes:
- Week 3 summary
- Week 3 Discussion questions 1, 2, 3, 4
- Week 3 Learning team assignment
- Week 3 Individual WileyPlus assignment as described below:
- E9-1 (Lower-of-Cost-or-Market) The inventory of Oheto Company on December 31, 2011, consistsofthe following items.
- Part No. Quantity Cost per Unit Cost to Replace per Unit
- 110 600 $95 $100
- 111 1,000 60 52
- 112 500 80 76
- 113 200 170 180
- 120 400 205 208
- 121a 1,600 16 14
- 122 300 240 235
- aPart No. 121 is obsolete and has a realizable value of $0.50 each as scrap.
- Instructions
- (a) Determine the inventory as of December 31, 2011, by the lower-of-cost-or-market method, applying
- this method directly to each item.
- (b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the
- total of the inventory.
- E9-12 (Gross Profit Method) Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
- Inventory, May 1 $ 160,000
- Purchases (gross) 640,000
- Freight-in 30,000
- Sales 1,000,000
- Sales returns 70,000
- Purchase discounts 12,000
- Instructions
- (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.
- (b) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost.
- E10-5 (Treatment of Various Costs) Allegro Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment.
- Abstract company’s fee for title search $ 520
- Architect’s fees 3,170
- Cash paid for land and dilapidated building thereon 92,000
- Removal of old building $20,000
- Less: Salvage 5,500 14,500
- Interest on short-term loans during construction 7,400
- Excavation before construction for basement 19,000
- Machinery purchased (subject to 2% cash discount, which was not taken) 65,000
- Freight on machinery purchased 1,340
- Storage charges on machinery, necessitated by noncompletion of
- building when machinery was delivered 2,180
- New building constructed (building construction took 6 months from
- date of purchase of land and old building) 485,000
- Assessment by city for drainage project 1,600
- Hauling charges for delivery of machinery from storage to new building 620
- Installation of machinery 2,000
- Trees, shrubs, and other landscaping after completion of building
- (permanent in nature) 5,400
- Instructions
- Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment.
- Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Indicate how any costs not debited to these accounts should be recorded.
- E10-12 (Entries for Asset Acquisition, Including Self-Construction) Below are transactions related to Impala Company.
- (a) The City of Pebble Beach gives the company 5 acres of land as a plant site. The market value of
- this land is determined to be $81,000.
- (b) 14,000 shares of common stock with a par value of $50 per share are issued in exchange for land
- and buildings. The property has been appraised at a fair market value of $810,000, of which
- $180,000 has been allocated to land and $630,000 to buildings. The stock of Impala Company is not listed on any exchange, but a block of 100 shares was sold by a stockholder 12 months ago
- at $65 per share, and a block of 200 shares was sold by another stockholder 18 months ago at
- $58 per share.
- (c) No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead
- the amounts properly chargeable to plant asset accounts for machinery constructed during the
- year. The following information is given relative to costs of the machinery constructed.
- Materials used $12,500
- Factory supplies used 900
- Direct labor incurred 16,000
- Additional overhead (over regular) caused by construction 2,700
- of machinery, excluding factory supplies used
- Fixed overhead rate applied to regular manufacturing operations 60% of direct labor cost
- Cost of similar machinery if it had been purchased from
- outside suppliers 44,000
- Instructions
- Prepare journal entries on the books of Impala Company to record these transactions
- Spend lots of time in the college library. Campus libraries have everything you need to study and do the research required for your classes. Get help from the librarian who can guide you in searching for materials that will be beneficial to your coursework. Also, you can find used books for cheap on the bulletin boards at the library.
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