Required information [The following information applies to the questions displayed below.] Blue Water Sails, Incorporated (BWS)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Required information [The following information applies to the questions displayed below.] Blue Water Sails, Incorporated (BWS) manufactures sailcloth used by sailmakers that produce sails for sailboats. BWS's sailcloth is the conventional polyester-based sail material and is used widely in recreational boating. Sailmakers throughout the world use BWS's sailcloth. The manufacture of sailcloth has a small number of processes, and BWS integrates them carefully so that there is very little Work-in-Process Inventory. The product is measured in yards of cloth, which is prepared in rolls 42 inches wide. Because it has little Work-in-Process Inventory, BWS also uses backflush accounting to simplify the accounting for its operations. BWS has the following information for the most recent accounting period. The beginning inventory of polyester fiber was $42,000, and the ending inventory was $53,000. Polyester fiber purchased Conversion cost incurred Direct materials standard cost Conversion standard cost Units produced and sold $ 710,000 $1,350,000 4.50 per yard of cloth. 8.50 per yard of cloth $ 155,000 yards of cloth Required: 1. Show the entries for manufacturing costs incurred or applied, completion of 155,000 yards of product, and the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required information [The following information applies to the questions displayed below.] Blue Water Sails, Incorporated (BWS) manufactures sailcloth used by sailmakers that produce sails for sailboats. BWS's sailcloth is the conventional polyester-based sail material and is used widely in recreational boating. Sailmakers throughout the world use BWS's sailcloth. The manufacture of sailcloth has a small number of processes, and BWS integrates them carefully so that there is very little Work-in-Process Inventory. The product is measured in yards of cloth, which is prepared in rolls 42 inches wide. Because it has little Work-in-Process Inventory, BWS also uses backflush accounting to simplify the accounting for its operations. BWS has the following information for the most recent accounting period. The beginning inventory of polyester fiber was $42,000, and the ending inventory was $53,000. Polyester fiber purchased Conversion cost incurred Direct materials standard cost Conversion standard cost Units produced and sold $ 710,000 $1,350,000 4.50 per yard of cloth. 8.50 per yard of cloth $ 155,000 yards of cloth Required: 1. Show the entries for manufacturing costs incurred or applied, completion of 155,000 yards of product, and the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Account Titles and Explanation Debit Credit Raw and InProcess Inventory 7100... View the full answer
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
Posted Date:
Students also viewed these accounting questions
-
Blue Water Sails, Inc. (BWS), manufactures sailcloth used by sailmakers that produce sails for sailboats. BWS's sailcloth is the conventional polyester-based sail material and is used widely in...
-
Grand Marine Inc. (GMI) manufactures sailcloth used by sailmakers that produce sails for sailboats. GMIs sailcloth is the conventional polyester-based sail material and is used widely in recreational...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
In Equation (8.2), the cost of raw materials, C RM , is multiplied by a factor of 1.23. The reason for this is that, in general, the estimated cost of raw materials is expected to be about 20% low...
-
What is a maintained assumption? What maintained assumptions are used in the model of individual choice? What is the difference between labor and human capital? Is decreasing returns to scale the...
-
ANTHONY: The sun is much smaller than the earth. You see, its just a small thing up there in the sky. Therefore, since the suns gravitational attraction is proportional to its mass, the suns gravity...
-
What are the advantages of leasing from the lessee's perspective?
-
Regents Corporation is a recently acquired U.S. manufacturing subsidiary located on the outskirts of London. Its products are marketed principally in the United Kingdom with sales invoiced in pounds...
-
Larry (LP) invests $150,000 in a VC fund run by Gary (GP). Gary is under 2/20 compensation plan. Interest does not accrue on the dividends. Gary invests $150,000 in a firm run by Edwin (Entreprene...
-
The Gilbert Air-Conditioning Company is considering the purchase of a special shipment of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $80, and it will be sold for...
-
A portion of the office space is being sub-leased to a tenant and received P500 as payment of the rental What is the debit value, credit value, asset, liabilities, revenue, and analysis?
-
Parent Ltd acquires all the issued capital of Subsidiary Ltd for a cash payment of $450,000 on 30 June 2019. As per the statements of financial position, the subsidiary Ltd's shareholders' equity...
-
Billy, Hughie, and Annie form a partnership where each partner will have an equal share to start. Billy contributes $50,000 in cash, Hughie contributes $80,000 in equipment, and Annie contributes...
-
Ms. Tanner has just graduated from the University of Edmonton. She owed approximately $67,000 in student loans. She has 10 years to pay off her student loans, starting one year from now. The interest...
-
State Legislative Influence over Agency Rulemaking: The Utility of Ex Ante Review Brian J. Gerber, Texas Tech University Cherie Maestas, Florida State University Nelson C. Dometrius, Texas Tech...
-
what are the characteristics of a complex trust? An estate with one beneficiary generates income of $10,000 in one year. That same year it distributes $15,000 to the beneficiary in the closing of the...
-
An investmet will pay you $50 at the end of every six months for 17 years. At the end of the 17 years, the investment will pay you an additional $1000 along with the last regular $50 payment. What is...
-
During registration at Tech every quarter, students in the Department of Management must have their courses approved by the departmental advisor. It takes the advisor an average of 4 minutes...
-
Software Solution (SOS) helps subscribers solve software problems. All transactions are made over the telephone. For the year 2015, 10 engineers, most of whom are recent graduates, handled 100,000...
-
Steve's Slop Shop, a small hamburger shop, has identified the resources used in its operations (assume each customer's order is a batch for this example): a. Bread b. Hourly help c. Store rent d....
-
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $120,000: Required How much of the joint cost should be...
-
Explain why and how bond discount and bond premium affect (a) the balance sheet and (b) the income statement of the investor.
-
What are convertible bonds? What are the primary reasons for their use?
-
Under GAAP, when is it appropriate to use the (a) straight-line interest method and (b) effective interest method of amortization for bond discount or premium?
Study smarter with the SolutionInn App