1. The following information is available for Hutton Company:Receipts from customers $215,000, Dividends from stock investments 3,000
Proceeds from sale of equipment 18,000
Proceeds from issuance of stock 90,000
Payments for inventory 100,000
Payments for operating expenses 78,000
Interest paid 6,000
Taxes paid 4,000
Dividends paid 20,000
Instructions
Based on the preceding information, compute the net cash provided by operating activities
2. Selected financial information for Zheng Corporation is presented below.
December 31, 2015 December 31, 2014
Current assets $ 55,000 $ 40,000
Long-term liabilities 90,000 80,000
Retained earnings 125,000 100,000
Instructions
Prepare a schedule showing a horizontal analysis for 2015 using 2014 as the base year.
3. Demich Company reports the following costs and expenses in June.
Factory utilities $ 13,300 Direct labor $71,900
Depreciation on factory Sales salaries 44,800
equipment 12,250 Property taxes on factory
Depreciation on delivery trucks 3,500 building 2,600
Indirect factory labor 49,800 Repairs to office equipment 1,500
Indirect materials 70,100 Factory repairs 2,300
Direct materials used 154,300 Advertising 21,000
Factory manager's salary 9,000 Office supplies used 2,460
Instructions
From the information, determine the total amount of:
(a) Manufacturing overhead.
(b) Product costs.
(c) Period costs
4. Lowes Manufacturing uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of $7,400 and two jobs in process: Job No. 221, $3,400, and Job No. 222, $4,000. During April, a summary of source documents reveals the following:
For Materials Requisition Slips Labor Time Tickets
Job No. 221 $1,300 $ 1,700
222 1,800 2,000
223 2,500 2,600
224 2,600 3,000
General use 800 400
Totals $9,000 $9,700
Lowes applies manufacturing overhead to jobs at an overhead rate of 65% of direct labor cost. Job No. 221 is completed during the month.
Instructions
(a) Prepare summary journal entries to record the raw materials requisitioned, factory labor used, the assignment of manufacturing overhead to jobs, and the completion of Job No. 221.
(b) Calculate the balance of the Work in Process Inventory account at April 30.