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Chapter 1 and 2 Homework (McGraw-Hill Connect)

We at Accounting Assignments Help provide Chapter 1 and 2 Homework (McGraw-Hill Connect) help with step by step calculation and explanation 24*7 from our accounting experts.

Problem-1 – Mcgraw hill connect accounting homework answers chapter 1

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $82,780 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts.

Also assume the following:

  • The owner’s initial investment consists of $36,750 cash and $46,030 in land in exchange for its common stock..
  • The company’s $16,580 equipment purchase is paid in cash.
  • The accounts payable balance of $7,250 consists of the $1,960 office supplies purchase and $5,290 in employee salaries yet to be paid.
  • The company’s rent, telephone, and miscellaneous expenses are paid in cash.
  • No cash has been collected on the $10,600 consulting fees earned.

Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)

Problem-2 – Chapter 1 Homework Financial Accounting Mcgraw hill connect

Following are the transactions of a new company called Pose-for-Pics. ( Mcgraw-hill Connect Homework Help )

  • Post the transactions to the T-accounts.
  • Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.

Problem-3 – Chapter 1 and 2 Homework (McGraw-Hill Connect)

The transactions of Spade Company appear below.

  • Kacy Spade, owner, invested $18,750 cash in the company in exchange for common stock.
  • The company purchased office supplies for $544 cash.
  • The company purchased $10,369 of office equipment on credit.
  • The company received $2,213 cash as fees for services provided to a customer.
  • The company paid $10,369 cash to settle the payable for the office equipment purchased in transaction c .
  • The company billed a customer $3,975 as fees for services provided.
  • The company paid $530 cash for the monthly rent.
  • The company collected $1,670 cash as partial payment for the account receivable created in transaction f .
  • The company paid $1,000 cash in dividends to the owner (sole shareholder).

Problem-4 – Mcgraw-hill connect accounting chapter 2 homework answers

Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations.

  • Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690).
  • Post the journal entries from part 1 to the ledger accounts.
  • Prepare a trial balance as of April 30.

Problem-5 – Mcgraw hill connect accounting answers chapter 1

Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company’s fiscal year).

May 1 Prepared a company check for $350 to establish the petty cash fund.

15 Prepared a company check to replenish the fund for the following expenditures made since May 1.

a. Paid $109.20 for janitorial services.

b. Paid $89.15 for miscellaneous expenses.

c. Paid postage expenses of $60.90.

d. Paid $80.01 to The County Gazette (the local newspaper) for an advertisement.

e. Counted $26.84 remaining in the petty cashbox.

16 Prepared a company check for $200 to increase the fund to $550.

31 The petty cashier reports that $370.27 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.

f. Paid postage expenses of $59.10. g. Reimbursed the office manager for business mileage, $47.05.

h. Paid $48.58 to deliver merchandise to a customer, terms FOB destination.

31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $500.

Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places.)

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Accounting Assignment Help »  Managerial Accounting Assignment Help » Connect Managerial Accounting Homework Chapter 2

Connect Managerial Accounting Homework Chapter 2

Q1. As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.

Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $9,000; direct labor, $3,600; and overhead, $1,260. Jobs 103 and 104 were started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. No raw materials were used indirectly in June. Using this information, answer the following questions. (Assume this company’s predetermined overhead rate did not change across these months.)

1&2. Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs?

connect managerial accounting homework chapter 2

3. Using the accumulated costs of the jobs, what predetermined overhead rate is used?

connect managerial accounting homework chapter 2

Q2. Starr Company reports the following information for August.

Prepare journal entries to record the following events.

  • Raw materials purchased.
  • Direct materials used in production.
  • Direct labor used in production.
  • Applied overhead.

connect managerial accounting homework chapter 2

Q3. Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $7,600, direct labor of $3,800, and applied overhead of $3,230. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on account) for $28,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July.

1. Prepare journal entries for the following in July.

  • Overhead applied.
  • The sale of Job 120.
  • Cost of goods sold for Job 120.

connect managerial accounting homework chapter 2

2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (Assume there are no jobs in Finished Goods Inventory as of June 30.)

connect managerial accounting homework chapter 2

Q4. Prepare summary journal entries to record the following transactions for a company in its first month of operations.

  • Raw materials purchased on account, $80,000.
  • Direct materials used in production, $37,000. Indirect materials used in production, $12,000.
  • Paid cash for factory payroll, $35,000. Of this total, $25,000 is for direct labor and $10,000 is for indirect labor.
  • Paid cash for other actual overhead costs, $7,000.
  • Applied overhead at the rate of 120% of direct labor cost.
  • Transferred cost of jobs completed to finished goods, $50,470.
  • Jobs that had a cost of $50,470 were sold.
  • Sold jobs on account for $72,100.

connect managerial accounting homework chapter 2

Q5. The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.

Compute the following amounts for the month of May using T-accounts.

  • Cost of direct materials used.
  • Cost of direct labor used.
  • Cost of goods manufactured.
  • Cost of goods sold.*
  • Gross profit.
  • Overapplied or underapplied overhead.

*Do not consider any underapplied or overapplied overhead.

connect managerial accounting homework chapter 2

Q6. The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.

  • Raw materials purchases for cash.
  • Direct materials usage.
  • Indirect materials usage.

Prepare journal entries for the above transactions for the month of May.

connect managerial accounting homework chapter 2

Q7. The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.

  • Direct labor usage.
  • Indirect labor usage.
  • Total payroll paid in cash.

connect managerial accounting homework chapter 2

Q8. The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.

  • Incurred other overhead costs (record credit to Other Accounts).
  • Applied overhead to work in process.

connect managerial accounting homework chapter 2

Q9. Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following.

1. Determine the predetermined overhead rate used (based on direct materials cost).

connect managerial accounting homework chapter 2

Q10. The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.

Determine whether there is over or underapplied overhead. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

connect managerial accounting homework chapter 2

Storm Concert Promotions

Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

connect managerial accounting homework chapter 2

Valle Home Builders

connect managerial accounting homework chapter 2

Q12. At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $340,000, and direct materials costs, $200,000. At year-end, the company’s records show that actual overhead costs for the year are $877,800. Actual direct materials cost had been assigned to jobs as follows.

1. Determine the predetermined overhead rate.

connect managerial accounting homework chapter 2

Q13. At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $1,400,000,and direct labor costs, $400,000. At year-end, the company’s records show that actual overhead costs for the year are $1,900,700. Actual direct labor cost had been assigned to jobs as follows.

1. Determine the predetermined overhead rate for the year.

connect managerial accounting homework chapter 2

Q14. Marcelino Co.’s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $21,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $640,000 cash in April. Costs of the three jobs worked on in April follow.

Required: 1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).

connect managerial accounting homework chapter 2

Q15. Marcelino Co.’s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $21,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $640,000 cash in April. Costs of the three jobs worked on in April follow.

  • Materials purchases (on credit).
  • Direct labor paid and assigned to Work in Process Inventory.
  • Indirect labor paid and assigned to Factory Overhead.
  • Overhead costs applied to Work in Process Inventory.
  • Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
  • Transfer of Jobs 306 and 307 to Finished Goods Inventory.
  • Cost of goods sold for Job 306.
  • Revenue from the sale of Job 306.
  • Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

2. Prepare journal entries for the month of April to record the above transactions.

connect managerial accounting homework chapter 2

Q16. Marcelino Co.’s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $21,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $640,000 cash in April. Costs of the three jobs worked on in April follow.

3. Prepare a schedule of cost of goods manufactured.

connect managerial accounting homework chapter 2

Q17. Marcelino Co.’s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $21,000; factory rent, $35,000; factory utilities, $22,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $640,000 cash in April. Costs of the three jobs worked on in April follow.

4-a. Compute gross profit for April. 4-b. Show how to present the inventories on the April 30 balance sheet.

connect managerial accounting homework chapter 2

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