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1) Below are selected T accounts from Bri Cheese Dairy with incomplete informati

ID: 2497854 • Letter: 1

Question

1) Below are selected T accounts from Bri Cheese Dairy with incomplete information:

                    Work in Process                

Oct. 1 Balance    20,000 | Oct. 31 Goods

    31 Direct            |          finished       X

         materials 96,700 |

    31 Direct            |

         labor    201,000 |

    31 Factory           |

         overhead       X |

                    Finished Goods                

Oct. 1 Balance    52,000 |

    31 Goods             |

         finished 360,000 |

If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October by Bri?

a.

$63,300

b.

$21,300

c.

$42,300

d.

$11,300

2) CK Venkat Chemicals had incurred labor costs incurred on account during this period. The amount was $225,000 including $195,000 for production orders and $30,000 for general factory use. In addition, factory overhead applied to production was $17,000. Which of the following entries will CK Venkat use to record the factory overhead applied to production.

a.

Work in Process                        30,000

Factory Overhead                                 30,000

b.

Factory Overhead                       17,000

   Work in Process                                  17,000

c.

Work in Process                        17,000

Factory Overhead                                 17,000

d.

Factory Overhead                       30,000

Accounts Payable                                 30,000

3) Use the Direct Method for this problem. Baltimore Tourist Trinkets had cost of merchandise sold during the 2014 at $50,000. Merchandise inventories were $12,500 and $10,500 On January 1 2014 and December 31, 2014 respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Cash payments for merchandise total are

a.

$49,000

b.

$47,000

c.

$51,000

d.

$53,000

4) Patriots Inc. had equipment with an original cost of $50,000 and accumulated depreciation of $20,000. This was sold at a loss of $7,000. As a result of this transaction, Patriot’s cash would

a.

increase by $23,000

b.

decrease by $7,000

c.

increase by $43,000

d.

decrease by $30,000

5) Littleton Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $35 per pound and would require an additional cost of $8.75 per pound to produce. What is the differential revenue of producing Product D?

a.

$7 per pound

b.

$8.75 per pound

c.

$14 per pound

d.

$5.25 per pound

a.

$63,300

b.

$21,300

c.

$42,300

d.

$11,300

Explanation / Answer

As per Chegg Guidelines we answer one question per post. I have answered more than 1 question. Kindly post remaining questions in separate post to get the best answers Q1   a 63,300 Opening Balance            20,000.00 Direct Materials            96,700.00 Direct Labour          201,000.00 Factory Overhead x Less Closing Balance          (21,000.00) Total T/f to FG x + 296,700   T/f to FG          360,000.00 360,000 = x + 296,700 x= 63,300 Q3   a.$49,000 Statement showing computations Particulars Amount Closing Merchandise            10,500.00 Costof goods sold            50,000.00 Less Opening stock          (12,500.00) Purchases            48,000.00 Opening AP               6,000.00 Total Amount to be paid            54,000.00 Less Closing AP               5,000.00 Amount paid for merchandise            49,000.00 Q4   a. increase by $23,000 Statement showing computations Particulars Amount Original Cost            50,000.00 Accumuated Depreciation            20,000.00 Net cost or book value            30,000.00 Loss               7,000.00 Sale Value            23,000.00 Q5 Statement showing computations Particulars Amount Incremental Revenue(35-21)                     14.00 Incremental Cost                       8.75 Differential Income                       5.25