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Discuss the measurement principles/bases might be most appropriate for a company that has ceased to be a going concern

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Discuss the measurement principles/bases might be most appropriate

for a company that has ceased to be a going concern.

 

 

Exam Exercise Two - 2 (GST On Taxable Benefits) Mr. John Lamarche,

as the result of an outstanding sales achievement within his organization, is awarded two airline tickets to Bali. His employer pays a travel agent $5,275, plus 5 percent GST for the tickets. What is the amount of Mr. Lamarche's taxable benefit? Exam Exercise Two - 3 (Taxable Benefits - Purchased Automobile) Ms. Robin Nestor is provided with an automobile that is owned by her employer. The employer purchased the car in 2009 for $54,000, plus $2,700 GST and $4,320 PST. During 2009, she drives the car a total of 72,000 kilometers, of which 67,000 kilometers were employment related. The automobile was available to Ms. Nestor for 268 days during 2009. Calculate Ms. Nestor's minimum taxable benefit for the use of the automobile. Exam Exercise Two - 4 (Taxable Benefits - Leased Automobile) During 2009, Mr. Sam Warren is provided with an automobile that is leased by his employer. The monthly lease payment is $791 per month. This figure includes $35 in GST and $56 in PST. During the year, the car is available to Mr. Warren for a total of 310 days. During this period, he drives the car a total of 40,000 kilometers, 22,000 of which are employment related. Calculate Mr. Warren's minimum taxable benefit for the use of the automobile. Exam Exercise Two - 5 (Deductible Automobile Costs) Mr. Rudy Jackson is required by his employer to use his own automobile in the course of his employment. To compensate him, he is paid an annual allowance of $4,200. During 2009, he drove his automobile a total of 26,720 kilometers, of which 8,150 were employment related. His total automobile costs for the year, including lease costs, are $8,623. What amounts will Mr. Jackson include and deduct from his 2009 employment income related to the use of his automobile? 24

 

 

Phillips Corporation's fiscal year ends on November 30. The following

accounts are found in its job order cost accounting system for the first month of the new fiscal year.


Other data:


1.On December 1, two jobs were in process: Job No. 154 and Job No. 155. These jobs had combined direct materials costs of $9,950 and direct labor costs of $15,200. Overhead was applied at a rate that was 75% of direct labor cost.2.During December, Job Nos. 156, 157, and 158 were started. On December 31, Job No. 158 was unfinished. This job had charges for direct materials $3,900 and direct labor $4,900, plus manufacturing overhead. All jobs, except for Job No. 158, were completed in December.3.On December 1, Job No. 153 was in the finished goods warehouse. It had a total cost of $5,400. On December 31, Job No. 157 was the only job finished that was not sold. It had a cost of $4,600.4.Manufacturing overhead was $1,595 underapplied in December.


List the letters (a) through (m) and indicate the amount pertaining to each letter.


Raw Materials Inventory
Dec. 1 Beginning balance(a)Dec. 31 Requisitions 18,55031 Purchases18,625   Dec. 31 Ending balance8,545   
Work in Process Inventory
Dec. 1 Beginning balance(b)Dec. 31 Jobs completed(f)31 Direct materials(c)   31 Direct labor8,900   31 Overhead(d)   Dec. 31 Ending balance(e)   
Finished Goods Inventory
Dec. 1 Beginning balance(g)Dec. 31 Cost of goods sold(i)31 Completed jobs(h)   Dec. 31 Ending balance(j)   
Factory Labor                         
Dec. 31 Factory wages12,225Dec. 31 Wages assigned(k)
Manufacturing Overhead
Dec. 31 Indirect materials3,200Dec. 31Overhead applied(m)31 Indirect labor(l)   31 Other overhead1,745   

 

 

Agassi Company uses a job order cost system in each of its three manufacturing

departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K.


In establishing the predetermined overhead rates for 2020, the following estimates were made for the year.


Department
D
E
K
Manufacturing overhead$924,000$1,500,000$900,000Direct labor costs$1,320,000$1,875,000$675,000Direct labor hours150,000125,00060,000Machine hours600,000750,000120,000


During January, the job cost sheets showed the following costs and production data.


Department
D
E
K
Direct materials used$210,000$189,000$117,000Direct labor costs$180,000$165,000$56,250Manufacturing overhead incurred$148,500$186,000$118,500Direct labor hours12,00016,5005,250Machine hours51,00067,50010,440
(a)
Compute the predetermined overhead rate for each department. (Round answers to 2 decimal places, e.g. 12.50 or 12.50%.)


Overhead rateDepartment D
 %Department E$ 
 per direct labor hourDepartment K$ 
 per machine hour