Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rundle Corporation builds sailboats. On January 1, 2019, the company had the following account balances: $85,000 for both cash and common stock. Boat 25 was

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Rundle Corporation builds sailboats. On January 1, 2019, the company had the following account balances: $85,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Rundle had incurred cash costs of $4,100 for labor and $3,550 for materials. During the same period, Rundle paid $8170 cash for actual manufacturing overhead costs. The company expects to incur $260,000 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 $130,000 Rundle 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 2. Use the horizontal financial statements model, to record Rundle's business events. The first row shows beginning balances b. If Rundle desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? c. If the boat is not sold by year-end, what amount would appear in the Work in Process Inventory and Finished Goods Inventary on the balance sheet for Boat 25? d. Is the amount of inventory you calculated in Requirement cthe actual or the estimated cost of the boat? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Use the horizontal financial statements model, to record Rundle's business events. The first row shows beginning balances. (Do not found intermediate calculat Enter any decreases to account balances with a minus sign.) Assets Equity Work in Finished Manufacturing Common Retained Net Cash Revenue Process Goods Overhead Stock earnings Expense Income 85.000 a5.000 85.000 0+ 0+ OS 85,000 + 0 O 0 Required B> Rundle Corporation builds salboats. On January 1, 2019, the company had the following account balances: $85,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat. Rundle had incurred cash costs of $4100 for labor and $3,550 for materials. During the same period, Rundle paid $8,170 cash for actual manufacturing overhead costs. The company expects to incur $260,000 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 $130,000. Rundle 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 a. Use the horizontal financial statements model to record Rundle's business events. The first row shows beginning balances. b. Rundle desires to earn a profit equa to 10 percent of cost, for what price should it sell the boat? c. 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? d. Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boat? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D If Rundle desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Desired price (Required A Required c> Rundle Corporation builds sailboats. On January 1, 2019, the company had the following account balances: $85,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat. Rundle had incurred cash costs of $4,100 for tabor and $3,550 for materials. During the same period, Rundle paid $8,170 cash for actual manufacturing overhead costs. The company expects to incur $260,000 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 $130,000 Rundle 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 a. Use the horizontal financial statements model to record Rundle's business events. The first row shows beginning balances. b. Rundle desires to earn a profit equal to 10 percent of cost, for what price should it sell the boot? c. 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? d. Is the amount of inventory you calculated in Requirement c the actual or the estimated cost of the boot? Complete this question by entering your answers in the tabs below. Required A Required Required cRequired D 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.) Work in process inventory Finished goods inventory Rundle Corporation builds sailboats. On January 1, 2019, the company had the following account balances: $85,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Rundle had incurred cash costs of $4100 for labor and $3,550 for materials. During the same period, Rundle paid $8.170 cash for actual manufacturing overhead costs The company expects to incur $260,000 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 $130,000. Rundle 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 a. Use the horizontal financial statements model, to record Rundle's business events. The first row shows beginning balances. b. If Rundle desires to earn a profit equal to 10 percent of cost, for what price should it sell the boat? c. 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? d. Is the amount of inventory you calculated in Requirement cthe actual or the estimated cost of the boat? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Is the amount of inventory you calculated in Requirement the actual or the estimated cost of the boat? The amount of inventory is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Outsourced Functions Risk Management In An Outsourced World

Authors: Mark Salamasick

1st Edition

0894137255, 9780894137259

More Books

Students also viewed these Accounting questions

Question

8. Explain the contact hypothesis.

Answered: 1 week ago

Question

7. Identify four antecedents that influence intercultural contact.

Answered: 1 week ago