Questions from General Accounting


Q: During the first quarter, Roland Company incurs the following direct labor

During the first quarter, Roland Company incurs the following direct labor costs: January $40,000, February $30,000, and March $50,000. For each month, prepare the entry to assign overhead to producti...

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Q: In March, Stinson Company completes Jobs 10 and 11. Job

In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $20,000 and Job 11 $30,000. On March 31, Job 10 is sold to the customer for $35,000 in cash. Journalize the entries for the completion o...

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Q: Preprah Engineering Contractors incurred service salaries and wages of $32,

Preprah Engineering Contractors incurred service salaries and wages of $32,000 ($24,000 direct and $8,000 indirect) on an engineering project. The company applies overhead at a rate of 25% of direct l...

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Q: At December 31, balances in Manufacturing Overhead are Shimeca Company—

At December 31, balances in Manufacturing Overhead are Shimeca Company— debit $1,200, Garcia Company—credit $900. Prepare the adjusting entry for each company at December 31, assuming the adjustment i...

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Q: Trammell, Inc. operates 20 injection molding machines in the production

Trammell, Inc. operates 20 injection molding machines in the production of tool boxes of four different sizes, named the Apprentice, the Handyman, the Journeyman, and the Professional. Classify each o...

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Q: Spin Cycle Company uses three activity pools to apply overhead to its

Spin Cycle Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead...

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Q: LRF Printing provides printing services to many different corporate clients. Although

LRF Printing provides printing services to many different corporate clients. Although LRF bids most jobs, some jobs, particularly new ones, are negotiated on a “cost-plus” basis. Costplus means that t...

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Q: Kwik Pix is a large digital processing center that serves 130 outlets

Kwik Pix is a large digital processing center that serves 130 outlets in grocery stores, service stations, camera and photo shops, and drug stores in 16 nearby towns. Kwik Pix operates 24 hours a day,...

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Q: Storrer Co. identifies the following activities that pertain to manufacturing overhead

Storrer Co. identifies the following activities that pertain to manufacturing overhead: materials handling, machine setups, factory machine maintenance, factory supervision, and quality control. For e...

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Q: Mason Company manufactures four products in a single production facility. The

Mason Company manufactures four products in a single production facility. The company uses activity-based costing. The following activities have been identified through the company’s activity analysis...

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