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1.P Ltd owns all of the shares of S Ltd. During the year ended 30 June 2020, P Ltd sells a land to S Ltd at a profit of $2,000. The consolidated worksheet entries in relation to the land sales, ignoring tax effect, for the year ending 30 June 2020 include:
a. DR Land, CR Gain on sale
b. DR Cash, CR Land
c. DR Gain on sale, CR Land
d. DR Land, CR Cash
2.EcoFabrics has budgeted overhead costs of $1,105,650. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 526,500 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $421.200 and $684.450 is allocated to the design cost pool. Additional information related to these pools is as follows. Wool 117.000 Machine hours Number of setups Cotton 117.000 585 Total 234,000 1.755 1.170
Calculate the overhead rate using activity based costing. (Round answers to 2 decimal places, eg. 12.25.) Overhead rates for activity-based costing 1.80 per machine hour $ Cutting $ 390.00 per setup Design Att
Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing. Wool product line Cotton product line 666.900 $ $ $ 438.750 $ Overhead Allocated
Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, eg. 12.25.) $ $ per direct labor hour Overhead rates using the traditional approach.
3.You are working on your income taxes and want to figure your mortgage interest deduction for the previous year. Unfortunately someone inadvertently ran your mortgage documents through a shredder. You were able to discover fragments of the amortization schedule that showed elements from a row from that schedule: Payment # Amount Interest Principal Balance 100 $1,932.90 ??? $709.30 $244,010.90 a. Determine the APR of this mortgage (two three decimal places); b. Determine the original amount of the mortgage; C. Determine the original term (length) of the mortgage; d. Complete the following row of the mortgage's amortization schedule: Payment # Amount Interest Principal Balance 200.
1.Whenever there is a sale of land, the amount realized by way of cash will carry a debit entry and the Land Account will carry a credit entry. If the sale is made at a profit, that is, the amount paid in cash is higher than the amount of the cost of land, such as Gain on sale of land will carry a credit entry whereas in cases of losses, that is, where the amount paid in cash is lesser than the cost of Land, such Loss on sale of Land will hold a Debit entry.
2.1. Overhead rate using activity based costing:
| Cutting | $421,200 / 234,000 machine hours = $1.80 per machine hour |
| Design | $684,450 / 1,755 setups = $390.00 per setup |
2. Overhead allocated to the wool product line and cotton product line using activity-based costing:
| Wool product line | Cotton product line | |
| Overhead allocated |
(117,000 machine hours * $1.80) + (1,170 setups * $390.00) = $666,900 |
(117,000 machine hours * $1.80) + (585 setups * $390.00) = $438,750 |
3. Overhead rate using the traditional approach
| Overhead rate = Total Budgeted overhead cost / Total Direct labor hours |
Overhead rate using the traditional approach = $1,105,650 / 526,500 direct labor hours = $2.10 per direct labor hour.
3.Annual Percentage Rate ( Interest Rate ) is 0.5 %
| Payment | EMI | Interest | Principal | Balance |
| 100 | 1,932.90 | 1,223.60 | 709.30 | 2,44,010.70 |
| 200 | 1,932.90 | 764.92 | 1,167.98 | 1,51,815.63 |
| 300 | 1,932.90 | 9.62 | 1,923.28 | 0 |
Original Loan Value is 3,00,000
