Douglas Basket Co. produces a specialty basket used by a gift basket company, Yours Truly Gifts. Douglas
Question:
Douglas Basket Co. produces a specialty basket used by a gift basket company, Yours Truly Gifts. Douglas uses a just-in-time system and has very little inventories of material, work in process, or finished goods. Since the balances are so small, the company carries them at zero for purposes of accounting. During August, the company produced and shipped 150,000 baskets at a cost of $1.75 per basket. The cost was made up of 55 percent material cost, 25 percent labor cost, and 20 percent manufacturing overhead.
Required
Prepare journal entries to record:
a. The issuance of direct material.
b. The cost of direct labor (use wages payable).
c. The application of manufacturing overhead.
d. The completion of units in process and their transfer to finished goods.
e. Cost of goods sold.
Step by Step Answer:
a Work in process 144 375 Material inventory 144 375 1...View the full answer
Students also viewed these Managerial Accounting questions
-
Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable...
-
On Dec. 1, 2014 Pete Fiore opened Flore Consulting Services, Inc. He provides marketing seminars guaranteed to increase sales by SK. The first fiscal (calendar) year will end December 31, 2014. One...
-
gravity model is proposed to generate a 3x3 trip distribution matrix. The expected total trip productions are 0 = 250, 02 = 1 where cij is A doube-constrained 415, and 03 = 395, and the expected trip...
-
A 15.00 g metal sphere was found to have a diameter of 1.85 cm. The volume of a sphere is V = (4/3)r. Calculate the density of the sphere and assuming that the sphere is made out of one of the...
-
Your ALU can add its two input registers, and it can logically complement the bits of either input register, but it cannot subtract. Numbers are to be stored in two's complement representation. List...
-
Provide a discussion board response to my peer below: What is Debt Financing? Debt financing is one of method to raise capital by borrowing money from lenders/investors. Bank loans and bonds are...
-
Consider the model \(y_{i}=\beta_{1} x_{i}+\varepsilon_{i}\), that is, regression with one explanatory variable without the intercept term. This model is called regression through the origin because...
-
Amy Torbert operates Hollins Riding Academy. The academy's primary sources of revenue are riding fees and lesson fees, which are paid on a cash basis. Amy also boards horses for owners, who are...
-
What measures can change leaders implement to mitigate resistance to change and facilitate stakeholder buy-in, particularly in contexts characterized by entrenched organizational cultures and vested...
-
A uniform slender rod rests on a car seat as shown. Determine the deceleration a for which the rod will begin to tip forward. Assume that friction at B is sufficient to prevent slipping. Vertical ...
-
Newberry Company accumulates costs for its product using a process costing system. Direct materials are added at the beginning of the production process, and conversion occurs evenly throughout the...
-
Plastic Glow Company makes glow sticks. It uses a process costing system and has had a just-in-time inventory policy. The plant has a capacity to produce 500,000 units a year but currently operates...
-
Give an example of how e-HRM improves the efficiency of human resource management for Plan International.
-
What are the characteristics of a multi-domestic corporation?
-
Job stress is a major problem for employees working in many organizations today. Discuss some of the job stressors. What can a manager do to reduce stressors for employees?
-
A coworker takes credit for the excellent job youve performed. Frustrating! Its probably happened to you or someone you know. How did it happen? Perhaps you shared an idea with a coworker and then...
-
Mintzberg suggests that managerial roles should encompass interpersonal, decisional, and informational roles. Clearly, this is an idealized vision of the manager. They are encouraged to encompass all...
-
Technological developments deskill the global workforce. For example, factory-built, flat-pack furniture cut out the role of experienced carpenters. Similarly, with some vehicles having on-board...
-
A series circuit, with R = 10 and L = 20 mH, has current i = 2.0 sin 500t (A). Obtain total voltage v and the angle by which i lags v.
-
Copy and complete the statement. 3800 m ? km =
-
Using the equation of state method, determine the equilibrium composition in the vapor phase and the system pressure of a mixture of carbon dioxide (1) and benzene (2) with a liquid mole fraction of...
-
Estimated cost and operating data for three companies for the upcoming year follow: Predetermined overhead rates are computed using the following allocation bases in the three companies: Required:...
-
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. The overhead that...
-
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. The overhead that...
-
My company has equity beta of 0.56, 5.02% cost of (risk-free) debt, and market risk premium is 5% over the risk-free rate. D/(D+E) ratio is -31.7% and E/(D+E) ratio is 131.7%. Corporate tax rate is...
-
Discuss the main factors which a company should consider when determining the appropriate mix of long-term and short-term sources of finance in its capital structure.
-
Evaluate the impact of central bank interest rate policies, such as the federal funds rate in the United States or the repo rate in India, on various sectors of the economy, including consumption,...
Study smarter with the SolutionInn App