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Caltran, Inc

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Caltran, Inc. completed manufacturing Job 445. It included

$330

of direct materials? cost,

$1,200

of direct labor? cost, and

$550

of allocated manufacturing overhead. Which of the following is the correct journal entry needed to record the completed? job?

 

 

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Part 1

 

 

A.

Work−in−Process Inventory	1,530
Cost of Goods Sold		1,530

 

 

B.

Finished Goods Inventory	2,080
Work−in−Process Inventory		2,080

 

 

C.

Finished Goods Inventory	2,080
Materials Inventory		2,080

 

 

D.

Work−in−Process Inventory	2,080
Finished Goods Inventory		2,080

 

 

Requirements

 

1.	Compute a trend analysis for net revenue and net income. Round to the nearest full percent.
2.	Which grew faster during the? period, net revenue or net? income?

 

 

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Part 1

 

Requirement 1. Compute a trend analysis for net revenue and net income. Round to the nearest full percent.

 

Begin by calculating

King Oaks

?Realty's trend analysis for net? revenue, then calculate

King Oaks

?Realty's trend analysis for net income. ?(Enter the percentages as whole numbers. For? example, enter? 22% as? 22.)

 

	2025		2024		2023		2022		2021
Net Revenue	$1,310,000		$1,187,000		$1,143,000		$1,004,000		$1,047,000
Trend Percentages		%		%		%		%	100%

 

Part 2

 

	2025		2024		2023		2022		2021
Net Income	$122,000		$114,000		$83,000		$76,000		$79,000
Trend Percentages		%		%		%		%	100%

 

Part 3

 

Requirement 2. Which grew faster during the? period, net revenue or net? income?

 

?

 

Net income

Net revenue

 

grew at a faster rate.

 

Net Revenue and Net Income

	2025	2024	2023	2022	2021
Net Revenue	$1,310,000	$1,187,000	$1,143,000	$1,004,000	$1,047,000
Net Income	122,000	114,000	83,000	76,000	79,000

 

 

The financial statements of Carrier Office Furniture Company include the following? items:

	2025	2024
Cash	$45,500	$43,000
Short−term Investments	24,000	16,000
Net Accounts Receivable	101,000	100,000
Merchandise Inventory	162,000	147,000
Total Assets	527,000	553,000
Total Current Liabilities	270,000	289,000
Long−term Note Payable	61,000	50,000

What is working capital for? 2025?

 

 

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Part 1

 

 

A.$ 38 comma 500

$38,500

 

 

B.$ 99 comma 500

$99,500

 

 

C.$ 196 comma 000

$196,000

 

 

D.$ 62 comma 500

 

 

 

Iglesias, Inc. completed Job 12 on November 30. The details of Job 12 are given? below:

 

Direct labor cost	$860
Direct materials cost	$1,000
Machine hours	9 hours
Direct labor hours	23 hours
Predetermined overhead allocation rate	$90 per machine hour

 

What is the total cost of Job? 12?

 

 

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Part 1

 

 

A.$ 2 comma 670

$2,670

 

 

B.$ 1 comma 860

$1,860

 

 

C.$ 1 comma 670

$1,670

 

 

D.$ 1 comma 810

 

 

Which of the following is a period cost for a manufacturing? company?

 

 

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Part 1

 

 

A.

office rent

 

 

B.

insurance cost of production equipment

 

 

C.

wages of factory janitor

 

 

D.

raw materials

 

 

A corporation has? 3,000 shares,? 10% preferred stock of? $50.00 par preferred? stock, and? 9,000 shares of common stock outstanding. The net income for the year is? $250,000. Calculate earnings per share.? (Round your answer to the nearest? cent.)

 

 

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Part 1

 

 

A.

?$83.33

 

 

B.

?$26.11

 

 

C.

?$27.78

 

 

D.

?$50.00

 

 

The journal entry to record

$1,600

of direct labor and

$200

of indirect labor incurred will include? debit(s) to the? ________.

 

 

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Part 1

 

 

A.

Work−in−Process

Inventory account for

$1,600

and Finished Goods Inventory account for $200

 

 

B.

Manufacturing Overhead account for $1,800

 

 

C.

Work−in−Process

Inventory account for

$1,600

and Manufacturing Overhead account for $200

 

 

D.

Finished Goods Inventory account for

 

 

Jasper, Inc. reports the following cost information for? March:

 

Cost of Goods Manufactured	$74,900
Manufacturing Overhead	18,700
Finished Goods? Inventory, March 1	5,000
Finished Goods? Inventory, March 31	2,300
Work−in−Process ?Inventory, March 1	9,300
Work−in−Process ?Inventory, March 31	1,500
Direct Materials Used	26,100

 

What is the cost of goods sold for? March?

 

 

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Part 1

 

 

A.$ 1 comma 900

$1,900

 

 

B.$ 77 comma 600

$77,600

 

 

C.$ 79 comma 900

$79,900

 

 

D.$ 72 comma 200

 

 

Jeremy Corporation estimated manufacturing overhead costs for the year to be

$510,000.

Jeremy also estimated

8,000

machine hours and

2,000

direct labor hours for the year. It bases the predetermined overhead allocation rate on machine hours. On January? 31, Job 25 was completed. It required

7

machine hours and

7

direct labor hours. What is the amount of manufacturing overhead allocated to the completed? job? (Round intermediate calculations to the nearest cent and your final answer to the nearest? dollar.)

 

 

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Part 1

 

 

A.$ 64

$64

 

 

B.$ 446

$446

 

 

C.$ 1 comma 785

$1,785

 

 

D.$ 893

 

 

The trend analysis report of? Marswell, Inc. is given below? (in millions):

 

	2025	2024	2023	2022	2021
Net income	$660	$607	$458	$407	$402
Trend percentages	164?%	151?%	114?%	101?%	100?%

 

Which of the following is a correct conclusion from the above? analysis?

 

 

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Part 1

 

 

A.

Net income for 2023 has decreased by

14?%

over that for 2021.

 

 

B.

Net income for 2023 has increased by

114?%

over that for 2021.

 

 

C.

Net income for 2023 has decreased by

114?%

over that for 2021.

 

 

D.

Net income for 2023 has increased by

14?%

over that for 2021.

 

 

Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be

$760,000

and

$550,000?,

respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are

19,000

hours and

7,000

?hours, respectively. What is the predetermined overhead allocation? rate? (Round your answer to the nearest? cent.)

 

 

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Part 1

 

 

A.

$1.38

per labor hour

 

 

B.

$108.57

per machine hour

 

 

C.

$78.57

per machine hour

 

 

D.

$28.95

per labor hour

 

 

Selected data for Lemon? Grass, Inc. for the year are provided? below:

 

Factory Utilities	$3,000
Indirect Materials Used	38,000
Direct Materials Used	301,000
Property Taxes on Factory Building	6,900
Sales Commissions	85,000
Indirect Labor Incurred	23,000
Direct Labor Incurred	150,000
Depreciation on Factory Equipment	6,500

 

What is the total manufacturing? overhead?

 

 

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Part 1

 

 

A.$ 451 comma 000

$451,000

 

 

B.$ 61 comma 000

$61,000

 

 

C.$ 77 comma 400

$77,400

 

 

D.$ 16 comma 400

 

 

Danby, Inc. provides the following data from its income statement for? 2024:

 

Net Sales	?$540,000
Cost of Goods Sold	?(160,000)
Gross Profit	?$380,000

 

Calculate the gross profit percentage.? (Round your answer to two decimal? places.)

 

 

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Part 1

 

 

A.

?100.00%

 

 

B.

?70.37%

 

 

C.

?23.75%

 

 

D.

?29.63%

 

 

First, compute cost of goods manufactured.

 

Schedule of Cost of Goods Manufactured

 

Direct Materials Used:
Direct Materials Used
Total Manufacturing Costs Incurred during the Year
Total Manufacturing Costs to Account For
Cost of Goods Manufactured

 

Part 2

 

Now compute cost of goods sold.

 

Cost of Goods Sold

 

Cost of Goods Manufactured
Cost of Goods Available for Sale
Cost of Goods Sold

 

 

Data table

Balances:	Beginning	Ending
Direct Materials	$20,000	$31,000
Work-in-Process Inventory	37,000	31,000
Finished Goods Inventory	19,000	28,000

 

Data table

Other information:
Purchases of direct materials	$77,000
Direct labor	84,000
Manufacturing overhead	38,000

 

Bass Accounting Services expects its accountants to work a total of

27,000

direct labor hours per year. The? company's estimated total indirect costs are

$297,000.

The company uses direct labor hours as the allocation base for indirect costs. What is the indirect cost allocation? rate?

 

 

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Part 1

 

 

A.

$22.00

per hour

 

 

B.

$110.00

per hour

 

 

C.

$13.20

per hour

 

 

D.

$11.00

per hour

 

 

At the end of the? year, Beta, Inc. has an unadjusted debit balance in the Manufacturing Overhead account of

$3,980.

The adjusting journal entry needed to adjust the balance to zero will include a? ________.

 

 

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Part 1

 

 

A.

debit to Cost of Goods Sold

$3,980

and credit to Manufacturing Overhead $3,980

 

 

B.

debit to Manufacturing Overhead

$3,980

and credit to Cost of Goods Sold $3,980

 

 

C.

debit to Gross Profit

$3,980

and credit to Cost of Goods Sold $3,980

 

 

D.

debit to

Work−in−Process

Inventory

$3,980

and credit to Manufacturing Overhead

 

 

The journal entry to issue

$800

of direct materials and

$30

of indirect materials to production involves? debit(s) to the? ________.

 

 

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Part 1

 

 

A.

Work−in−Process

Inventory account for

$800

and Manufacturing Overhead account for $30

 

 

B.

Work−in−Process

Inventory account for $830

 

 

C.

Work−in−Process

Inventory account for

$800

and Finished Goods Inventory account for $30

 

 

D.

Manufacturing Overhead account for

 

 

?Fuchsia, Inc. provides automobile repair services in the local community. The company provides the following information for the month of? March:

 

Building Rent Expense	?$5,000
Depreciation Expense—Equipment	?1,700
Supplies Expense	?8,000
Utilities Expense	?2,350

 

Fuchsia provided services to? 1,500 clients in the month of March and generated? $25,000 as revenue. How much is the cost per? service? (Round your answer to the nearest? cent.)

 

 

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Part 1

 

 

A.

?$10.64

 

 

B.

?$3.33

 

 

C.

?$11.37

 

 

D.

?$6.03

 

 

Tri Designs, Inc.

Balance Sheet

December 31, 2024 and 2023

	2024	Percent of Total
Assets
Total Current Assets	$48,600		%
Property, Plant, and Equipment, Net	219,600		%
Other Assets	31,800		%
Total Assets	$300,000		%
Liabilities
Total Current Liabilities	$38,400		%
Long-term Debt	98,400		%
Total Liabilities	136,800		%
Stockholders' Equity
Total Stockholders' Equity	163,200		%
Total Liabilities and Stockholders' Equity	$300,000		%

2023	Percent of Total
$66,600		%
168,720		%
60,680		%
$296,000		%
$45,880		%
204,536		%
250,416		%
45,584		%
$296,000

 

Tri Designs, Inc.

Comparative Balance Sheet

December 31, 2024 and 2023

 

2024

2023

Assets

 

 

Total Current Assets

$48,600

$66,600

Property, Plant, and Equipment, Net

219,600

168,720

Other Assets

31,800

60,680

Total Assets

$300,000

$296,000

Liabilities

 

 

Total Current Liabilities

$38,400

$45,880

Long-term Debt

98,400

204,536

Total Liabilities

136,800

250,416

Stockholders' Equity

 

 

Total Stockholders' Equity

163,200

45,584

Total Liabilities and Stockholders' Equity

$300,000

$296,000