Information from the records of the Maloney Company for the month of May 2016 is as follows:
Purchases of direct materials
Depreciation on factory machinery
Selling and administrative expenses
Rent on factory building
Series of cash flows of same amount received or
paid each period
A loan on which periodic interest is paid in equal amounts
Cash flows occur at the end of each period
Cash flows occur
Formal credit arrangements
From loans to other
entities/ to stockholders
From the extension of the
credit period to trade
Chapter 5 Part C:
Accounting for Long-Term Contracts
Steps 2 and 5 are critical for long-term contracts.
Step 2: Identify the performance obligations
Usually have a single performance obligation, because
dont meet the separately identifiable crite
1. Matriarch Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.
At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine
hours would be 8,000.