Under what inventory system is cost of goods sold determined at the end of an accounting period quizlet?
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Terms in this set (49)25% Recommended textbook solutions Corporate Finance11th EditionBradford D. Jordan, Randolph W. Westerfield, Stephen A. Ross 1,433 solutions Sets with similar termsSets found in the same folderOther sets by this creatorVerified questionsACCOUNTING Verified answer
ACCOUNTING Verified answer
ACCOUNTING Showbiz Video completed the following payroll transactions during the first two weeks of December. Showbiz Video pays its employees on a biweekly basis (every two weeks). In your working papers: 1. Record the December 13 transactions on page 38 in the general journal. 2. Post both payroll entries to the appropriate general ledger accounts. 3. Journalize and post the December 16 transactions. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \text{Dec. 13} & \text{Wrote Check 2206 to pay the payroll of \$3,840.58 (gross}\\ \text{ } & \text{earnings) for the pay period ending December 13. The}\\ \text{ } & \text{following amounts were withheld: FICA taxes, \$238.12 for}\\ \text{ } & \text{social security and \$55.69 for Medicare; employees’ federal}\\ \text{ } & \text{income taxes, \$639.00; employees’ state income taxes, \$96.02;}\\ \text{ } & \text{insurance premium, \$21.00; U.S. savings bonds, \$20.00.}\\ \text{13} & \text{Recorded the employer’s payroll taxes (FICA tax rates, 6.2\\% for}\\ \text{ } & \text{social security and 1.45\\% for Medicare; federal unemployment}\\ \text{ } & \text{tax rate, 0.8%; state unemployment tax rate, 5.4%). No}\\ \text{ } & \text{employee has reached the maximum taxable amount.}\\ \text{16} & \text{Paid the amounts owed to the federal government for }\\ \text{ } & \text{employees’ federal income taxes and FICA taxes, Check 2215. }\\ \text{16} & \text{Purchased U.S. savings bonds for employees for \$100.00, }\\ \text{ } & \text{Check 2216. }\\ \text{16} & \text{Paid \$148.00 to American Insurance Company for employees’}\\ \text{ } & \text{insurance, Check 2217.}\\ \end{array} $$ Identify the payroll accounts that have a balance after entries have been posted. Verified answer
ACCOUNTING Abraham Company uses process costing to account for its production costs. Conversion is added evenly throughout the process. Direct materials are added at the beginning of the process. During September, the production department transferred 80,000 units of product to finished goods. Beginning work in process consisted of 2,000 units that were 100% complete with respect to direct materials and 85% complete with respect to conversion. Of the units completed, 2,000 were from beginning work in process and 78,000 units were started and completed during the period. Beginning work in process had $58,000 of direct materials and$86,400 of conversion cost. At the end of September, the work in process inventory consists of 8,000 units that are 25% complete with respect to conversion. The direct materials cost added in September is $712,000, and conversion cost added is$1,980,000. The company uses the weighted average method. 1. Determine the equivalent units of production with respect to (a) conversion and (b) direct materials. 2. Compute both the conversion cost and the direct materials cost per equivalent unit. 3. Compute both conversion cost and direct materials cost assigned to (a) units completed and transferred out and (b) ending work in process inventory. 4. The company sells and ships all units to customers as soon as they are completed. Assume that an error is made in determining the percentage of completion for units in ending inventory. Instead of being 25% complete with respect to conversion, they are actually 75% complete. Write a one-page memo to the plant manager describing how this error affects its September financial statements. Verified answer Other Quizlet setsRelated questionsIn which system is the cost of goods sold determined and recorded each time a sale occurs?The cost of goods sold is determined and recorded each time a sale occurs in: periodic inventory system only.
Under what inventory system is cost of goods sold determined after each sale quizlet?A company which uses a periodic inventory system debits Cost of Goods Sold and credits Inventory each time it sells merchandise. A company that uses the periodic inventory system does not have an inventory account.
When goods are sold under the perpetual inventory system?Under the perpetual system, two transactions are recorded at the time that the merchandise is sold: (1) the amount of the sale is debited to Accounts Receivable or Cash and is credited to Sales, and (2) the cost of the merchandise sold is debited to the account Cost of Goods Sold and is credited to Inventory.
What is perpetual inventory system?A perpetual inventory system is a program that continuously estimates your inventory based on your electronic records, not a physical inventory. This system starts with the baseline from a physical count and updates based on purchases made in and shipments made out.
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