Net income during 2020 at average rate 1000 x p44

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Net income during 2020 at average rate ($1,000 x P44) 44,000 Dividends declared on December 1, 2020 at transaction rate ($200 x P41) ( 8,200) Retained earnings on December 31, 2020 at translated amount 335,800 Number 105 Answer B Total assets at closing rate on December 31, 2020 ($50,000 x P45) 2,250,000 Total liabilities at closing rate on December 31, 2020 ($30,000 x P45) 1,350,000 Ordinary shares at transaction rate on January 1, 2019 ($5,000 x P40) 200,000 Preference shares at transaction rate on July 1, 2019 ($8,000 x P42) 336,000 Retained earnings on December 31, 2020 at translated amount 335,800 Cumulative translation credit on December 31, 2020 (SQUEEZE) 28,200 Total liabilities and shareholders’ equity on December 31, 2020 2,250,000 Page 20 Number 106 Answer D Actual cost per unit 6.00 Standard cost per unit 5.00 Direct material variance 1.00 Multiply by units acquired 400 Unvaporable variance 400 Number 107 Answer C
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Standard units (100 x 3) 300 Direct materials used 250 Direct material usage variance 50 Multiply by standard cost 5 Favorable variance 250 Number 108 Answer A Actual direct labor cost per hour 80 Standard direct labor cost 100 Direct labor rate variance 20 Multiply by hours used _30 Favorable variance 600 Number 109 Answer B Actual direct labor hours 30 Standard direct labor hours (10 x 2) __20 Direct labor efficiency variance 10 Multiply by standard direct labor cost 100 Unfavorable variance 1,000 Number 110 Answer B Decrease in direct materials during the year 500,000 Labor cost during the year 400,000 Actual factory overhead during the year 300,000 Total manufacturing costs during the year 1,200,000 Increase in work in process during the year ( 200,000) Cost of goods manufactured during the year 1,000,000 Number 111 Answer A Raw materials inventory beginning 200,000 Net purchases of raw materials 500,000 Raw materials inventory ending ( 300,000) Raw materials used 400,000 Indirect materials used (400,000 x ¼) ( 100,000) Direct materials used 300,000 Direct labor costs (800,000 x 7/8) 700,000 Applied Factory Overhead (700,000 x 80%) 560,000 Total manufacturing costs 1,560,000 Page 21 Number 112 Answer B
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Total manufacturing costs 1,560,000 Work in process inventory beginning 500,000 Work in process inventory ending ( 200,000) Total costs of goods manufactured 1,860,000 Number 113 Answer C Indirect materials used (400,000 x ¼) 100,000 Indirect labor costs (800,000 x 1/8) 100,000 Depreciation of factory assets 100,000 Utilities on the factory during the year 300,000 Actual factory overhead during the year 600,000 Applied factory overhead (700,000 x 80%) (560,000) Under application of factory overhead 40,000 Number 114 Answer D Sale price at split off - Del 5.00 Processing cost ( 0.80) Cost of disposal ( 0.20 ) Net realizable value per unit 4.00 Multiply by number of units 5.00 Value of product Del 20.000 Number 115 Answer D Units Fraction Cost Product Alt 20,000 2/3 320,000 Product Tab 10,000 1/3 160,000 30,000 480,000 Total cost 500,000 Allocated to by-product Del ( 20,000 ) Joint cost 480,000 Number 116 Answer C Sale price at split off Fraction Cost Alt (20,000 x 150) 3,000,000 3/5 288,000 Tab (10,000 x 200) 2,000,000 2/5 192,000 5,000,000 480,000 Number 117 Answer C Direct materials purchased/used during the year 100,000
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Direct labor costs during the year 200,000 Standard factory overhead (200,000 x 75%) 150,000 Finished goods inventory ending (120,000) Cost of goods sold under backflush costing 330,000 Page 22 Number 118 Answer B Conversion cost in Beginning Raw and in Process account 1,000 Conversion cost in Beginning Finished goods account 6,000
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