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Accounting question




Question;Question;2;Trapp Co. was organized;on August 1 of the current year. Projected sales for the next three months are;as follows;August;$100,000;September;185,000;October;225,000;The company expects to sell 40% of its merchandise for cash. Of the sales on;account, one third are expected to be collected in the month of the sale and;the remainder in the following month.Prepare a schedule indicating cash;collections of accounts receivable for August, September, and October.Question;4;The Finishing Department of Paragon;Manufacturing Co. prepared the following factory overhead cost budget for;October of the current year, during which it expected to operate at a 100%;capacity of 10,000 machine hours;Variable cost;Indirect factory wages;$18,000;Power and light;12,000;Indirect materials;4,000;Total variable cost;$34,000;Fixed cost;Supervisory salaries;$12,000;Depreciation of plant and;equipment;8,800;Insurance and property taxes;3,200;Total fixed cost;24,000;Total factory overhead;$58,000;During October, the plant was operated for 9,000 machine hours and the factory;overhead costs incurred were as follows: indirect factory wages, $16,400, power;and light, $10,000, indirect materials, $3,000, supervisory salaries, $12,000;depreciation of plant and equipment, $8,800, insurance and property taxes;$3,200.Prepare a factory overhead cost;variance report for October. (The budgeted amounts for actual amount produced;should be based on 9,000 machine hours.)


Paper#42025 | Written in 18-Jul-2015

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