Question
176. On January 4, Year 1, Barber Company purchased 14,500 shares of Convell Company for $174,000 plus a broker's fee of $4,800. Convell Company has
176. On January 4, Year 1, Barber Company purchased 14,500 shares of Convell Company for $174,000 plus a broker's fee of $4,800. Convell Company has a total of 72,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.75 per share, and its net income was $129,000 and $124,000 for Year 1 and Year 2, respectively. The January 12, Year 3, entry to record Barber's sale of 8,700 shares of Convell Company stock, which represents 60% of Barber's total investment, for $117,450 cash should be:
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Debit Cash $117,450; credit Gain on Sale of Investment $10,170; credit Long-Term Investments $107,280.
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Debit Cash $117,450; debit Loss on Sale of Investment $7,140; credit Long-Term Investments $124,590.
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Debit Cash $117,450; debit Loss on Sale of Investment $21,750; credit Long-Term Investments $139,200.
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Debit Cash $117,450; credit Gain on Sale of Investment $21,750; credit Long-Term Investments $95,700.
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Debit Cash $117,450; debit Loss on Sale of Investment $61,350; credit Long-Term Investments $178,800.
192. Zhang Industries budgets production of 300 units in June and 310 units in July. Each finished unit requires 5 pounds of raw material K, which costs $6 per pound. Each months ending inventory of raw materials should be 30% of the following months budgeted production. The June 1 raw materials inventory has 450 pounds of raw material K. Compute budgeted cost of purchases for raw material K for June
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$9,300.
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$6,600.
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$9,120.
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$9,000.
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$9,090.
200. Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 29,400 units. June and July sales are estimated to be 294,000 and 304,000 units, respectively. Trago assigns variable overhead at a rate of $3.20 per unit of production. Fixed overhead equals $414,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for the month of June.
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$1,386,800.
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$1,358,000.
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$1,354,800.
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$1,368,000.
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$944,000.
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