Question 23(3.5 points)

Bowie Sporting Goods manufactures sleeping bags.The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 5.50 yards at $5.25 per yard

Direct labor of 2.50 hours at $16.00 per hour

Overhead applied per sleeping bag at $18.00

In the month of April, the company actually produced 4,900 sleeping bags using 25,200 yards of material at a cost of $5.70 per yard.The labor used was 11,500 hours at an average rate of $19.50 per hour.The actual overhead spending was $96,200.

Determine the materials price variance and round to the nearest whole dollar.Enter a favorable variance as a negative number.Enter an unfavorable variance as a positive number.

Answer:

Question 24(3.5 points)

Bowie Sporting Goods manufactures sleeping bags.The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 4.50 yards at $5.75 per yard

Direct labor of 2.00 hours at $19.00 per hour

Overhead applied per sleeping bag at $18

In the month of April, the company actually produced 5,100 sleeping bags using 26,800 yards of material at a cost of $5.90 per yard.The labor used was 13,500 hours at an average rate of $16.50 per hour.The actual overhead spending was $96,200.

Determine the labor quantity variance and round to the nearest whole dollar.Enter a favorable variance as a negative number.Enter an unfavorable variance as a positive number.Answer:

Question 25(16 points)

Selected financial information for the Adelphi Company for the fiscal years ended December 31, 2018 and 2017 follows.Demonstrate a cash flow statement using the indirect method.Properly title the statement.

2018/2017

Cash balance$113,500/$37,500

Net income 142,500/162,000

Depreciation Expense 42,000/35,000

Purchase of Plant Assets 135,000/125,000

Disposal of Plant Assets40,000/50,000

Gain (Loss) on Disposal of Plant Assets (10,000)/5,000

Accounts Receivable Balance 64,500/58,000

Accounts Payable Balance 42,000/39,000

Interest Expense8,000/6,000

Income Taxes Paid 35,000/28,000

Dividends Paid 30,000/ 25,000

Common Stock Issued for Cash 20,0000 /0