Can incentive compensation also apply to service businesses? How do the activities of manufacturers, merchandisers, and service businesses differ? 30 Paid for more December supplies, $12,000. 3 - The payroll records of Grove Machining Co. show... Ch. What are the advantages of accumulating costs by departments or jobs rather than for the factory as... What is a job cost sheet, and why is it useful? Principles of Cost Accounting | 17th Edition. 10 Paid the note payable of $15,000, plus interest of $150. A credit of $4,800 to Accounts Receivable in the journal was not posted to the ledger account at all. Note: For the exercises and problems in this chapter, use the following tax rates: FICA–Employer and employee, 8% of the first $120,000 of earnings per employee per calendar year. *16. 3 - R. Herbert of Crestview Manufacturing Co. is paid... Ch. 3 - In accounting for labor costs, what is the... Ch. 3 - Margaret Weier earns 1,000 per week for a five-day... Ch. 3 - The payroll records of Graham Computer Co. for the... Ch. Distinguish prime cost from conversion cost. The following is a list of manufacturing costs incurred by Denney Manufacturing Co. during July:... Leen Production Co. uses the job order cost system of accounting. Regular wages are wages which are paid to workers for their The cash was received, and a note promising to return the $80,000 on 2010 May 30, was signed. What motivated Larry to go along with unethical and illegal actions? 30 Costs paid in entertaining customers in December, $350. 3 - Besides FICA, FUTA and state unemployment taxes,... Ch. One debit of $2,400 to the Dividends account was posted as a credit to that account. State unemployment–4% of the first $8,000 of earnings per employee per calendar year. Exercise A Prepare the journal entry required for each of the following transactions: Exercise B Prepare the journal entry required for each of the following transactions: Exercise C Prepare the journal entry required for each of the following transactions: Exercise D For each of the following unrelated transactions, give the journal entry to record the transaction. Incurred supplies expenses on account in the amount of $1,920. 3 - Accounting for bonus, vacation pay, and holiday... Ch. How profitable is this new venture? What are standard costs, and what is the purpose of a standard cost system? The ledger account has the balance at its correct amount of $83,200. 9 Paid $2,200 for supplies received and used in March. The professor purchased all of the materials for the job. Trim Lawn’s trial balance at the end of the first 11 months of the year follows: 10 Purchased a new office desk on account, $1,050. 3 - Recording the payroll and payroll taxes Using the... Ch. 3 - Besides FICA, FUTA and state unemployment taxes,... Ch. Exercise G Using your answer for the previous exercise, prepare a trial balance. Post the journal entries to ledger accounts. David Kelley is considering the implementation of an incentive wage plan to increase productivity in his small manufacturing plant. Chapter 3 Book solutions. 3 - Sandy Arens, SS# 123-45-6789, is a Grade 1... Ch. What are the basic elements of production cost? Julie Phelps, Vice President-Manufacturing, is concerned that the move to an incentive compensation plan will cause direct laborers to speed up production and, thus, compromise quality. 13 Purchased $240 of supplies on account for use in December. 3 - What is a shift premium, and how is it usually... Ch. 3 - Pan-Am Manufacturing Co. prepares cost estimates... Ch. 3 - In what circumstance should an accrual for payroll... Ch. regular 8 hour work in factory. All rights reserved. Explain your answer. 3 - Distinguish between defined benefit pension plans... Ch. 3 - Accounting for bonus and vacation pay Cathy Muench... Ch. The ending... Glasson Manufacturing Co. produces only one product. Paid salaries for the month in the amount of $7,500. Explain. Why is unit cost information important to management? asset is debited for increase in balance. 3 - Although payroll records may vary in design, what... Ch. Mar. 20 Received bill for gasoline purchased and used in January, $180. Focus on skills that will take you far in today's competitive job market as you learn how to determine the costs of products and services and how to set effective selling prices. The purpose of a debit-credit memorandum is to inform the vendor that an adjustment has been made to the vendor’s account. calculated as hour worked multiplied by $20. Group project F With one or two other students and using library resources, write a report on the life of Luca Pacioli, sometimes referred to as the father of accounting. What are the two major objectives of materials control? Should Jacobs stay in this business? Related documents. 24 Paid the December utilities bill, $180. 3 - Summary of payroll procedures Megerle Custom... Ch. For regular work up to 8 hours on week days the regular wages is Services were performed for customers on account, $1,200. Exercise E Prepare journal entries to record each of the following transactions for Sanchez Company. the accounting journal using the accounting rules and principles. What do you think the real Larry did? Course. 3 - In production work teams, output is dependent upon... Ch. 3 - Payroll computation with incentive bonus Fifteen... Ch. ➢ What types of accounts appear in the unadjusted trial balance? Jacobs had been making $50,000 per year. 320.). Services were performed for customers on account, $4,200. To ensure understanding, the book introduces concepts in small, manageable sections that are immediately reinforced with proven questions, demonstration problems, practice exercises, and self-study quizzes. Problem D Trim Lawn, Inc., is a lawn care company. The cost of the policy, $800, was paid in cash. We have step-by-step solutions for your textbooks written by Bartleby experts! 3 - The payroll records of Grove Machining Co. show... Ch. How does the cost accounting function assist in the management of a business? Why or why not? 320.). This edition packs the essentials you need to know in a unique 10-chapter format that is well organized, practical, and concise.