1- Prepare the journal entries for the following: (4 Points)
a. When raw materials are received, Give an example
b. When raw materials are sent to the factory floor, Give an example
c. When a job is completed, what happen to the cost, Give an example
d. Overhead expenses ( salary) paid by cheque $ 5000
e. Utilities (Indirect expenses) paid in cash $ 10000
f) Salaries totaling $5,000 are accrued; 35% of these costs are direct labor, 40% are indirect labor and 25% are overhead expense. Prepare the journal entry.
g) Overhead costs are allocated to work in process using an allocation rate of 150% of direct labor costs and 300% of overhead expenses.
Prepare the journal entry. (Give different examples- examples should not be same)
2- Riyadh Electricity Company manufactures chandeliers . Following is information for next year’s operations, based on an estimated volume of 20,000 units: 4 marks
Expected revenues $1,000,000
Direct materials $ 6.25
Direct labor 15.75
Variable overhead 5.50
Fixed manufacturing overhead 2.50
Other fixed costs:
Administration, marketing, etc. $225,000
Income tax rate 30%
a. What is the breakeven point for next year?
b. What is next year’s projected after-tax income?
c. Suppose the managers set a target after-tax income of $100,000. Estimate the number of units that must be sold.
3-Ahmed has budgeted next year’s sales at 8,000 units. (2 marks )
Compute Ahmed’s degree of operating leverage. If P = 1,000, V = 400, F = 850,000.
At Solution Essays, we are determined to deliver high-quality papers to our clients at a fair price. To ensure this happens effectively, we have developed 5 beneficial guarantees. This guarantees will ensure you enjoy using our website which is secure and easy to use.
Most companies do not offer a money-back guarantee but with Solution Essays, it’s either a quality paper or your money back. Our customers are assured of high-quality papers and thus there are very rare cases of refund requests due to quality concern.Read more
All our papers are written from scratch and according to your specific paper instructions. This minimizes any chance of plagiarism. The papers are also passed through a plagiarism-detecting software thus ruling out any chance of plagiarism.Read more
We offer free revisions in all orders delivered as long as there is no alteration in the initial order instruction. We will revise your paper until you are fully satisfied with the order delivered to you.Read more
All data on our website is stored as per international data protection rules. This ensures that any personal data you share with us is stored safely. We never share your personal data with third parties without your consent.Read more