CS Company started work on three job sites during the current year. Any costs incurred are expected tobe recoverable. Data relating to the three jobs are given below:SiteContractCostEstimated CostsBillings onCollections onPriceIncurredto CompleteContractBillings5,000,00015,000,0003,750,0005,000,00027,000,0001,000,0004,000,0001,000,000900,0001,500,000900,0001,000,00032,500,0001,000,000If the company records revenue at a point in time, how much must be shown as current asset in thebalance sheet of MOC Construction Company as of December31?A. 5,100,000B. 500,000C. 250,000D. 100,000

Given: Site Billings on Contract Collection on Billings 1 5,000,000 5,000,000 2 900,000…

Answered: If the company records revenue at a…

If the company records revenue at a point in time, how much must be shown as current asset in the balance sheet of MOC Construction Company as of December

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 7PB: Please use the information from this problem for these calculations. After grouping cost pools and...

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cS Company started work on three job sites during the current year. Any costs incurred are expected to be recoverable. Data relating to the three jobs are given below: Estimated Costs to Complete Site Contract Cost Billings on Collections on Price Incurred Contract Billings 5,000,000 3,750,000 5,000,000 5,000,000 2 7,000,000 1,000,000 4,000,000 900,000 900,000 3 2,500,000 1,000,000 1,000,000 1,500,000 1,000,000 If the company records revenue over time, how much must be shown as current asset in the balance sheet of MOC Construction Company as of December 31? A. 5,500,000 B. 500,000 C. 250,000 D. 100,000
CS Company started work on three job sites during the current year. Any costs incurred are expected to be recoverable. Data relating to the three jobs are given below: Billings on Contract Site Contract Cost Estimated Costs to Complete Collections on Price Incurred 3,750,000 1,000,000 Billings 5,000,000 900,000 1,000,000 1 5,000,000 5,000,000 900,000 2 7.000,000 2.500.000 4,000,000 3 1.000,000 1,000,000 1.500,000 1. If the company recoeds revenue over time, how much must be shown as current asset in the balance sheet of MOC Construction Company as of December 31? A. 5,500,000 B. S00,000 C 250,000 D. 100,000 2. If the company records revenue at a point in time, how much must be shown as current asset in the balance sheet of MOC Construction Company as of December 317 A. 5,100,000 8. S00,000 C 250,000 D. 100,000
Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on direct labor costs. The production details for the year are given below: Total manufacturing overhead costs estimated at the beginning of the year Total direct labor costs estimated at the beginning of the year Total direct labor hours estimated at the beginning of the year Actual manufacturing overhead costs for the year Actual direct labor costs for the year Actual direct labor hours for the year 11,000 di 10,000 di Calculate the manufacturing overhead allocation rate for the year based on the above data (Round your final answer to two decimal places.) A. 28.00% B. 11.43% OC. 43.75% OD. 264.29%
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Harry began his analysis of repairing costs by collecting cost and activity data for a number ofrecent months. Those data are displayed below: Month ActivityLevelRepairing costDays Cost IncurredJanuary 1,750 $14,100February 1,944 $15,150March 1,400 $13,900April 1,600 $14,000May 1,500 $14,300June 1,270 $12,100July 2,270 $19,150August 1,500 $14,600Required:i. Using the high-low method, estimate the fixed cost of repairing cost per month and thevariable cost of repairing per activity level. Round off the fixed cost to the nearest wholedollar and the variable cost to the nearest whole cent.ii. Express the fixed and variable components as a cost formula in the equation form.
Using the step method, what is the factory overhead rate of the cutting department? Galinganmo Corp has two service departments and two producing departments. The following are data available for the year 2021: FOH cost Estimated Area Labor Hrs Maintenance Security Cutting Assembly P129,000 105,000 416,000 380,000 2,900 1,100 2,000 1,600 Occupied 1,200 1,500 1,900 3,200 The maintenance costs are allocated based on estimated labor hours and security is allocated based on space occupied. The producing department uses machine hours with 50,000 for cutting and 25,000 for assembly to determine the factory overhead rate. P10.54 P8.32 O P20.35 P10.43
In using average method, Cruz Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers. For October 2021, Cruz Company presented the following costs on three processes: In October, what is the total costs transferred from Department A to Department B? P1,031,900 P 880,520 P 812,380 P 988,000
The allocation base of the company is machine-hours and the estimated amount of theallocation base for the upcoming year is 43,000 machine-hours. In addition, the actual activityfor the year is 42,600 machine-hours. All of the manufacturing overhead is fixed and is P848,820per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for theyear as well as the actual amount of manufacturing overhead for the year. Job F3, which required310 machine-hours, is one of the jobs worked on during the year. 2. Determine how much overhead would be applied to Job F3 if the predetermined overhead rateis based on estimated amount of the allocation base. _______________
The allocation base of the company is machine-hours and the estimated amount of theallocation base for the upcoming year is 43,000 machine-hours. In addition, the actual activityfor the year is 42,600 machine-hours. All of the manufacturing overhead is fixed and is P848,820per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for theyear as well as the actual amount of manufacturing overhead for the year. Job F3, which required310 machine-hours, is one of the jobs worked on during the year. 1. Determine the predetermined overhead rate if the predetermined overhead rate is based on theestimated amount of the allocation base. _______________
The allocation base of the company is machine-hours and the estimated amount of theallocation base for the upcoming year is 43,000 machine-hours. In addition, the actual activityfor the year is 42,600 machine-hours. All of the manufacturing overhead is fixed and is P848,820per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for theyear as well as the actual amount of manufacturing overhead for the year. Job F3, which required310 machine-hours, is one of the jobs worked on during the year. Determine the underapplied or overapplied overhead for the year if the predeterminedoverhead rate is based on the estimated amount of the allocation base. _______________
Rundle Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials adn labor costs are as follows. Expected Cost Home 1 Home 2 Home 3 Direct Labor $77,000 $100,000 $172,000 Direct Materials 108,000 146,000 198,000 Assume Randle needs to allocate two major overhead costs ($69,800 of employee fringe benefits and $36160 of indirect materials costs) among the three jobs. Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. "Round allocated rate to two decimal places.
For the year ended December 31, 2030, Jane Inc. incurred the following costs on Jon Order 01 for manufacturing of 1,000 units: Original cost accumulation: Direct materials 1,000,000 Direct labor 800,000 Factory overhead 200,000 Direct Costs of reworking 100 units: Direct materials 200,000 Direct labor 400,000 Required: 1. What is the cost per unit of Job Order 01 if the rework costs were attributable to the exacting specification of Job Order 01? 2. What is the cost per unit of Job Order 01 if the rework costs were attributable to internal failure?