Hello! I've added all of the questions leading up to number nine so that you can understand where I'm coming from. I'm done with most of it but my numbers just aren't adding up and I'm not too sure what I'm doing wrong.

Abbott Suit Corporation (ASC) manufactures BOTH nylon AND cotton jogging suits.

On 1/1/20, this was ASC's Balance Sheet

Cash $2,000,000 Accounts payable 0

AR 0 Wages Payable 0

RMI/WIP/FGI 0 Common Stock/APIC $2,000,000

PP&E 0 Retained Earnings 0

Total assets $2,000,000 Liabs. + Owner's Equity $2,000,000

On 1/1/20, Erin Rogers ESTIMATES the following costs:

Rent on MANUFACTURING facility $30,000

Salaries for CEO, cost accountant, administrative staff $10,000

Depreciation for machinery $10,000

Interest Expense $10,000 = $60,000

ABBOTT SUIT CORPORATION USES MACHINE HOURS TO ALLOCATE UTILITIES AND INDIRECT LABOR.

Abbott Suit Corporation direct labor hours to allocate rent on manufacturing facility and depreciation on the machinery.

Erin Rogers, UW-M graduate, creates the following standards for the two jogging suits:

Nylon Jogging Suits

Cotton Jogging Suits

Std.qty/suit

Std.price/input

Std.qty/suit

Std.price/input

Direct Materials

2 yds/suit

$10/yd

3 yds/suit

$20/yd

Direct Labor

5 dlh/suit

$10/dlh

4 dlh/suit

$5/dlh

VOHutilities/janitor wages

3 mh/suit

$10/mh

4 mh/suit

$10/mh

Var Cost/nysuit = $100/nysuitVar Cost/ctsuit = $120/ctsuit

Abbott Suit believes that it can sell Nylon Jogging Suits for $140/suit and Cotton Jogging suits for $140/suit.Abbott Suit has a goal operating income of $100,000 and believe that it will sell 3 times as many Cotton jogging suits as nylon jogging suits (that is, for every nylon jogging suit sold, 3x - or 3 times - that many cotton jogging suits will be sold).

1.Compute how many NYLON and COTTON jogging suits must be sold in order to achieve the goal operating income of $100,000 (SHOW YOUR WORK). (5 pts.).

Xnylon*($140-$100)+Xcotton($140-$120) - 60,000 = $100,000

3*Xnylon = Xcotton

Xnylon*($40)+3Xnylon($20) = $160,000

Xnylon*($40)+Xnlon($60) = $160,000

Xnylon*($100) = $160,000

Xnylon = 1,600 nylon suits

Xcotton = 4,800 cotton suits

2.On 1/1/20, ASC has the following balances:

Cotton Jogging Suits: 0 suits

Nylon Jogging Suits 0 suits

And ASC BUDGETS the following balances for 12/31/20:

Cotton Jogging Suits 2000 suits

Nylon Jogging Suits 1000 suits

REQUIRED: indicate how many cotton and nylon jogging suits ASC is budgeted to make in 2020 (3 pts).

X = 2,600 Nylon Suits

Y = 6,800 Cotton Suits

3.Calculate the predetermined FIXED overhead rate (3 pts).

FPDOH = $50,000/ (2,600nysuits*5dlh/nysuit + 6,800ctsuits*4dlh/ctsuit)

FPDOH = $50,000 / (13,000dlh+27,200dlh)

FPDOH = $50,000 / 40,200dlh

FPDOH = $1.24/dlh

ACTUAL RESULTS FOR THE YEAR/JOURNAL ENTRIES

4.On 1/1/20, ASC purchased - on account - 20,000 yards of nylon for $225,000 and 25,000 yards of cotton for $425,000 - on account.Please give the journal entry to record this transaction (4 pts).

RMInylon (20,000yds*$10/yd)....................................$200,000

DMPPVny(est=$10/yd, actual $11.25/yd=$1.25/ydUNF)....$25,000

Accounts Payable....................................................$225,000

RMIcotton (25,000yds*$20/yd)...........................$500,000

DMPPVct(est=$20/yd, actual $17/yd=$3/ydFAV)....................$75,000

Accounts Payable..................................................$425,000

5.1/1/20 ASC purchased - in cash - a sewing machine for $50,000.It has a zero salvage value and a useful life of 5 years.Give the journal entry (3 pts).

PP&E........$50,000

Cash...........$50,000

6.ASC, takes out a 10-year loan for $200,000.It has an annual interest rate of 5% and the interest payments are NOT due until the beginning of 2013.Please give the journal entry (3pts)

Cash.........$200,000

Loan Payable......$200,000

7.During the year, ASC nylon jogging suit workers requisition out 5,000 yards of nylon and made 3,000 nylon jogging suits.Give the journal entry to describe this transaction (3 pts).

Should have taken (3,000nysuits*2yds/suit) or 6,000 yds, actually took 5,000yds = 1,000yds FAV

WIP/FGny (3,000nysuits*2yds/nysuit*$10/yd).........$60,000

DMEVnylon (1,000ydsFAV*$10/yd)..................................$10,000

RMIny (5,000yds*$10/yd)..........................................$50,000

8.During the year, ASC cotton jogging suit workers requisitioned out 10,000 yards of cotton and made 4,000 cotton jogging suits.Give the journal entry (4 pts).

Should have taken (4,000ctsuits*3yds/ctsuit) = 12,000yds, actually took 10,000yds = 2,000yds FAV

WIP/FGct (4,000ctsuits*3yds/suit*$20/yd)........$240,000

DMEVct (2,000ydsFAV*$20/yd).............................$40,000

RMIct (10,000yds*$20/yd)................................$200,000

9.During the year, ALC paid the following to its workers:

Administrative Salaries to CEO, accountant, etc.. $8,000

Nylon jogging suit workers for direct labor (9000 dlh * $11/dlh) $99,000

Cotton jogging suit workers (20000 dlh * $4/dlh) $80,000

Janitor wages $125,000

These were paid for in CASH.Please give the journal entry (4 pts).

MOH-VOH......$125,000

Cash........$125,000

Period Cost.......$8,000

Cash...........$8,000

DLRVny=thought we would pay $10/dlh, actually paid $11/dlh=$5UNF*9,000dlh=$45,000UNF

DLEVny=made 3,000nysuits*5dlh/suit or 15,000dlh, actually used 9,000dlh=3,000dlhFAV*$10/dlh=$30,000FAV

WIP/FGny (3,000nysuits*5dlh/suit*$10/dlh).......$150,000

DLRVny.....................................................$45,000

DLEVny..............................................................$30,000

Cash..........................................................$99,000

DLRVct=thought we would pay $5/dlh, actually paid $4/dlh = $1/dlhUNF*20,000dlh = $20,000UNF

DLEVct=4,000ctsuist*4dlh/suit=16,000dlh, actually used 20,000dlh = 7,000dlhUNF*$5/dlh=$35,000UNF

WIP/FGct(4,000ctsuits*4dlh/suit*$5/dlh)...........$80,000

DLRVct....................................................$20,000

DLEVct....................................................$25,000

Cash......................................................$125,000