Question
Munoz Corporation builds sailboats. On January 1, 2019, the company had the following account balances: $65,000 for both cash and common stock. Boat 25 was
Munoz Corporation builds sailboats. On January 1, 2019, the company had the following account balances: $65,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Munoz had incurred cash costs of $4,700 for labor and $4,750 for materials. During the same period, Munoz paid $5,600 cash for actual manufacturing overhead costs. The company expects to incur $150,000 of indirect overhead cost during 2019. The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $125,000.
Munoz uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account.
Required
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Use the horizontal financial statements model, to record Munozs business events. The first row shows beginning balances.
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If Munoz desires to earn a profit equal to 20 percent of cost, for what price should it sell the boat?
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If the boat is not sold by year-end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory on the balance sheet for Boat 25?
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Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat?
Use the horizontal financial statements model, to record Munozs business events. The first row shows beginning balances. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)
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If Munoz desires to earn a profit equal to 20 percent of cost, for what price should it sell the boat? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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If the boat is not sold by year-end, what amount would appear in the Work in Process Inventory and Finished Goods Inventory on the balance sheet for Boat 25? (Do not round intermediate calculations.)
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Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat?
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Auditing Security And Controls Of Windows Active Directory Domains
Authors: Derek Melber
1st Edition
0894135635, 978-0894135637
