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Archive for the ‘Management’ Category

Apollo Shoe Audit Report and Internal Control Evaluation

Apollo Shoe Audit Report and Internal Control Evaluation. Resource pp 62 and 63 in Auditing and Assurance Services. Compose an audit report which reflects the appropriate length, sections,and content for the provided informaiton. Include a description of the evidence, the accounting sampling and testing procedures used etc.

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ECO 365 Supply and Demand Simulation Solution

Complete the Supply and Demand Simulation located on the student website.

Write 700 – 1,050-word paper of no more than summarizing the content. Address the following:

•Identify two microeconomics and two macroeconomics principles or concepts from the simulation. Explain why you have categorized these principles or concepts as macroeconomic or microeconomic.

•Identify at least one shift of the supply curve and one shift of the demand curve in the simulation. What causes the shifts?

•For each shift, analyze how it would affect the equilibrium price, quantity, and decision making.

•How may you apply what you learned about supply and demand from the simulation to your workplace or your understanding of a real-world product with which you are familiar?

•How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?

•How do the concepts of macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?

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BUSN 278 Budgeting and Forecasting Final Exam

Busn 278 Budgeting and Forecasting Final Exam

1. (TCO 1) Which one of the following is not a benefit of budgeting? (Points : 5)

It facilitates the coordination of activities.
It provides definite objectives for evaluating performance.
It provides assurance that the company will achieve its objectives.
It provides early warning signs of potential threats.

2. (TCO 2) Which of the following is not a qualitative forecasting method? (Points : 5)

Executive opinions
Sales force polling
Delphi method
Classical decomposition

3. (TCO 3) Which of the following statements regarding the t-statistic is true? (Points : 5)

The t-statistic cannot be negative.
The t-statistic measures how many standard errors the coefficient is away from the independent variable.
The higher the t-value, the more confidence we have in the coefficient.
Low t-values indicate high reliability.

4. (TCO 4) Which of the following statements regarding the risk associated with R&D activities is incorrect? (Points : 5)

The amount of time between the R&D activity and the cash flows from the project does not affect risk.
Greater risk is associated with creating new products than improving existing products.
Risk increases as the time between the R&D activity and the cash flows from the project increases.
Assessing risk is a vital part of research and development.

5. (TCO 5) Program budgeting does not include: (Points : 5)

Controlling
Programming
Budgeting
Planning

6. (TCO 6) The payback period technique ___________ (Points : 5)

should be used as a final screening tool.
can be the only basis for the capital budgeting decision.
is relatively easy to compute and understand.
considers the expected profitability of a project.

7. (TCO 6) The profitability index is computed by dividing the ___________ (Points : 5)

total cash flows by the initial investment.
present value of cash inflows by the present value of each outflow.
initial investment by the total cash flows.
initial investment by the present value of cash flows.

8. (TCO 6) A company projects annual cash inflows of $85,000 each year for the next five years if it invests $300,000 in new equipment. The equipment has a five-year life and an estimated salvage value of

$75,000. What is the accounting rate of return on this investment? (Points : 5)

28.3%
13.3%
15%
43.3%

9. (TCO 6) If an asset costs $210,000 and is expected to have a $30,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of $30,000 each year, the payback period is _____.

(Points : 5)

5 years
6 years
7 years
8 years

10. (TCO 6) Hyde Inc. is comparing several alternative capital budgeting projects as shown below:

Projects A B C

Initial Investment $110,000 $90,000 $50,000

Present value of cash inflows $100,000 $100,000 $60,000

Using the profitability index, rank the projects, starting with the most attractive. (Points : 5)

A, C, B.
A, B, C.
C, A, B.
C, B, A.

11. (TCO 6) Cleaners, Inc. is considering purchasing equipment costing $30,000 with a six-year useful life. The equipment will provide cost savings of $7,300 and will be depreciated straight-line over its

useful life with no salvage value. Cleaners requires a 10% rate of return. What is the approximate net present value of this investment? (Points : 5)

$13,800
$1,794
$886
$2,748

12. (TCO 7) Which of the following would not appear as a fixed expense on a selling and administrative expense budget? (Points : 5)

Freight-out
Office salaries
Property taxes
Depreciation

13. (TCO 7) A company budgeted unit sales of 102,000 units for January, 2008 and 120,000 units for February, 2008. The company has a policy of having an inventory of units on hand at the end of each

month equal to 30% of next month’s budgeted unit sales. If there were 30,600 units of inventory on hand on December 31, 2007, how many units should be produced in January, 2008 in order for the company

to meet its goals? (Points : 5)

107,400 units
102,000 units
96,600 units
138,000 units

14. (TCO 8) Standards that are based on efficient activity with allowances for unavoidable losses are called _______ (Points : 5)

basic standards.
maximum efficiency standards.
currently attainable standards.
expected standards.

15. (TCO 9) A static budget is appropriate for __________ (Points : 5)

variable overhead costs.
direct materials costs.
fixed overhead costs.
none of these.

16. (TCO 9) If the activity level increases 10%, total variable costs will ___________. (Points : 5)

remain the same
increase by more than 10%
decrease by less than 10%
increase 10%

17. (TCO 9) At the high level of activity in November, 7,000 machine hours were run and power costs were $12,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted

to $6,000. Using the high-low method, what is the estimated fixed cost element of power costs? (Points : 5)

$12,000
$6,000
$3,600
$8,400

18. (TCO 10) Which of the following statements regarding budget reports is incorrect? (Points : 5)

The cost of budget reports should not outweigh the benefits.
Budget reports are used for planning, control, and information.
Reports prepared for upper management typically have fewer details than reports prepared for lower-level managers.
Reports are prepared more frequently for upper management than for lower-level managers.

Page 2

1. (TCO 7) The first step in creating the master budget is the sales budget. Describe this budget and the information it includes. Why is the accuracy of the sales budget important? (Points : 20)

2. (TCO 9) Understanding how costs behave can help managers plan operations and choose between various courses of action.

Part (a) Identify and describe the three types of cost behavior, including examples of each Part.

Part (b) As a manager, which cost behavior would you prefer and why? (Points : 20)

3. (TCO 6) Yappy Company is considering a capital investment of $320,000 in additional equipment. The new equipment is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash inflows are expected to be $25,000 and $65,000, respectively. Yappy requires a 10% return on all new investments.

Part (a) Compute each of the following:
1: Payback period.
2: Net present value.
3: Profitability index.
4: Internal rate of return.
5: Accounting rate of return.

(b) Indicate whether the investment should be accepted or rejected. (Points : 30)

4. (TCO 7) Roswell Company has budgeted sales revenue as follows for the next 4 months as follows:

February

$150,000

March

$120,000

April

$105,000

May

$165,000

Past experience indicates that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale, and 3% in the second month following the sale. The other 2% is uncollectible.

Prepare a schedule which shows expected cash receipts from sales for the month of May.

5. (TCO 8) Eastern Company’s budgeted and actual sales for 2009 were:

Product

Budgeted Sales

Actual Sales

A

35,300 units at $2.00 per unit

32,700 units at $2.60 per unit

B

27,900 units at $5.00 per unit

29,200 units at $4.70 per unit

Part (a) Calculate the sales volume variance.
Part (b) Calculate the sales price variance.
Part (c) Calculate the total sales variance.

6. (TCO 9) The Mays Clinic has the following monthly telephone records and costs:
Calls

Costs

2,000

$2,400

1,500

2,000

2,200

2,600

2,500

2,900

2,300

2,700

1,700

2,200

Identify the fixed and variable cost elements using the high-low method.

2. (TCO 9) Understanding how costs behave can help managers plan operations and choose between various courses of action.

Part (a) Identify and describe the three types of cost behavior, including examples of each.
Part (b) As a manager, which cost behavior would you prefer and why? (Points : 20)

3. (TCO 6) Yappy Company is considering a capital investment of $320,000 in additional equipment. The new equipment is expected to have a useful life of 8 years with no salvage value. Depreciation is

computed by the straight-line method. During the life of the investment, annual net income and cash inflows are expected to be $25,000 and $65,000, respectively. Yappy requires a 10% return on all new

investments.

Part (a) Compute each of the following:
1: Payback period.
2: Net present value.
3: Profitability index.
4: Internal rate of return.
5: Accounting rate of return.
(b) Indicate whether the investment should be accepted or rejected. (Points : 30)

4. (TCO 7) Roswell Company has budgeted sales revenue as follows for the next 4 months as follows:

February

$150,000

March

$120,000

April

$105,000

May

$165,000

Past experience indicates that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale, and 3% in the second

month following the sale. The other 2% is uncollectible.

Prepare a schedule which shows expected cash receipts from sales for the month of May.

5. (TCO 8) Eastern Company’s budgeted and actual sales for 2009 were:

Product

Budgeted Sales

Actual Sales

A 35,300 units at $2.00 per unit

32,700 units at $2.60 per unit

B 27,900 units at $5.00 per unit

29,200 units at $4.70 per unit

Part (a) Calculate the sales volume variance.
Part (b) Calculate the sales price variance.
Part (c) Calculate the total sales variance.

6. (TCO 9) The Mays Clinic has the following monthly telephone records and costs:

Calls Costs

2,000 $2,400

1,500 2,000

2,200 2,600

2,500 2,900

2,300 2,700

1,700 2,200

Identify the fixed and variable cost elements using the high-low method.

 

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Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships Answer

Question 1. 1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5)
Reduced legal liability for investors
Harder to transfer ownership
Lower taxes
Most common form of organization

Question 2. 2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)
the most common form of distribution is a cash dividend
the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account will be decreased with a debit

Question 3. 3. (TCOs A, B) Below is a partial list of account balances for Cerner Company:

Cash $5,000
Prepaid insurance 500
Accounts receivable 2,500
Accounts payable 2,000
Notes payable 3,000
Common stock 1,000
Dividends 500
Revenues 15,000
Expenses 12,500

What did Cerner Company show as total credits? (Points : 5)
$21,500
$21,000
$20,500
$22,000

Question 4. 4. (TCOs B, E) Using accrual accounting, expenses are recorded and reported only _____. (Points : 5)
when they are incurred, whether or not cash is paid
when they are incurred and paid at the same time
if they are paid before they are incurred
if they are paid after they are incurred

Question 5. 5. (TCO D) Three companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5)
LIFO will have the highest ending inventory
FIFO will have the highest cost of goods sold
All three companies will have the same value for ending inventory.
average cost will have an ending inventory value that falls between FIFO and LIFO

Question 6. 6. (TCOs A, E) Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? (Points : 5)
$48,000
$52,500
$49,500
$43,500

Question 7. 7. (TCOs D, G) Joyce Corporation issues 1,000 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 102. The journal entry to record the issuance will show a _____. (Points : 5)
debit to Cash of $1,020,000
debit to Discount on Bonds Payable for $20,000
credit to Bonds Payable for $1,020,000
credit to Cash for $1,000,000

Question 8. 8. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)
$120,000
$125,000
$155,000
$115,000

Question 9. 9. (TCO F) If you are comparing the 2010 income statement numbers with the income statement numbers from 2009 and 2008, you are conducting a _____. (Points : 5)
common-size analysis
horizontal analysis
vertical analysis
ratio analysis

Question 10. 10. (TCO F) Comparisons of data within a company are an example of the following comparative basis. (Points : 5)
Industry averages
Intercompany
Intracompany
Interregional

Question 11. 11. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5)
net sales
salary and wages expense in a previous year
gross profit
net income

Question 12. 12. (TCO F) Short-term creditors are usually most interested in assessing _____. (Points : 5)
solvency
liquidity
marketability
profitability

Question 13. 13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)
profit margin and debt-to-total-assets ratio
profit margin and asset-turnover ratio
times interest earned and debt-to-stockholders equity ratio
profit margin and free cash flow

Question 14. 14. (TCO G) The present value of a bond is a function of which factors below? (Points : 5)
The market interest rate
The length of time until the amounts are received
The dollar amounts to be received
All of the above

Please review the following real-world ratios for Johnson & Johnson and Pfizer Answer

Question 5. 5. (TCO F) Please review the following real-world ratios for Johnson & Johnson and Pfizer for the year ended 2012 and address the 2 questions below.
Ratio Name Johnson & Johnson Pfizer

Profit margin 16.1% 24.7%
Inventory turnover ratio 3.1 1.7
Average collection period 59.4 days 69.1 days
Cash debt coverage ratio .27 .16
Debt to Total assets 46.6% 127.5%
Required:
1) Please explain the meaning of each of the Pfizer ratios above.
2) Please state which company performed better for each ratio.
(Points : 36)

Ans:

1)
Ans:

Profit margin – It shows that the profit earned on sales. The Profit Margin Ratio’s objective is to detect consistency, or positive or negative trends, in a company’s earnings. It shows the relationship Net income to sales. The Pfizer has earned 24.7 % on its sales after covering all expenses.

Inventory turnover ratio – It shows the efficient usage of inventory. This shows how fast inventory is being turned over by both companies. A lower number (ratio) means inventory doesn’t sit for a lengthy period of time. Inventory turnover is a measure of the number of times inventory is sold or used in a time period such as a year. A low turnover rate may point to overstocking. The Pfizer has used its inventory 1.7 times to generate sales.

Average collection period – It shows how many days are needed to collect form customers. Average collection period measures the average amount of time that a receivable is outstanding. This is done by dividing the accounts receivable turnover into 365 days. Companies use the average collection period to assess the effectiveness of a company’s credit and collection policies. It takes 69.1 days for Pfizer to collect from customer.

Cash to debt coverage ratio – This ratio indicates a company’s ability to repay its liabilities from cash generated from operations without having to liquidate productive assets such as property, plant, and equipment. It is 16% of Cash to debt coverage ratio for Pfizer.

Debt to Total assets – It shows the amount of total assets financed by total liabilities. Debt to total assets ratio indicates the extent to which a company’s assets are financed with debt. For Pfizer it is around 127.5 %, it means that the company has more liabilities than total assets.

2)

Ans:

Profit margin – The Pfizer is doing better than Johnson as it has higher profit margin.

Inventory turnover ratio – The Johnson & Johnson is better than Pfizer as it has higher inventory turnover ratio.

Average collection period – The company Johnson & Johnson is doing better as it has collection period of 59.4 days.

Cash to debt coverage ratio – The company Johnson & Johnson is better has it has higher Cash to debt coverage ratio.

Debt to Total assets – The company Johnson & Johnson doing better as it has lower debt to total assets ratio.

GB 518 Unit 5 Assignment Exercise 9-4 Exercise 10-1 Exercise 10-16 Exercise 11-2 Exercise 11-15 Answer

GB 518 Unit 5 Assignment Exercise 9-4 Exercise 10-1 Exercise 10-16 Exercise 11-2 Exercise 11-15

Excercise 9-4

Perfect Systems borrows $94,000 cash on May 15, 2011, by signing a 60-day, 12% note.

1. on what date does this note mature?

2 Suppose the face value of the note equals $94,000, the principal of the loan. Prepare the journal entries to record (a) issuance of the note and (b) payment of the note at maturity.

Excercise 10-1

On January 1, 2011, Kidman Enterprise issues bonds that have $1,700,000 oar value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par.

1. How much interest will Kidman pay (in cash) to the bondholders every six months?

2. Prepare journal entries to record (a) the issuance of bonds on January 1, 2011: (b) the first interest payment on June 30, 2011; and (c) the second interest payment on December 31 2011.

3. Prepare the jounal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.

Excercise 10-16

Ramirez Company is considering a project that will require a $500,000 loan. It presently has total liabilities of $220,000, and total assets of $620,000.

1. Compute Ramirez’s (a) present debt-to-equity ratio and (b) the debt-t-pay equity ratio assuming it borrows $500,000 to fund the project.

2. Evaluate and discuss the level of risk involved if Ramirez borrows the funds to pursue the project.

Excercise 11-2

Aloha Corporation issues 6,000 shares of its common stock for $144,000 cash on February 20. Prepare journal entries to record this event under each of the following seperate situations.

1. The stock has neither par nor stated value.

2. The stock has a $20 par value.

3. The stock has an $8 stated value.

Excercise 11-15

Compute the price-earnings ratio for each of these four seperate companies. Which stock might an analyst likeely investigate as being potentially undervalued by the market? Explain.

Company Earnings per Share Market Value per Share

1 $10.00 $166.00

2 $9.00 $90.00

3 $6.50 $84.50

4 $40.00 $240.00

This is a solution guide. Please write in your words.

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BUSN 460 Senior Project All weeks Discussion Questions CANGO Video Analysis Final Report and Presentation Answer

BUSN 460 Senior Project All weeks Discussion Questions CANGO Video Analysis Final Report and Presentation_Answer

BUSN 460 Senior Project All weeks Discussion Questions CANGO Video Analysis Final Report and Presentation Answer

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BUSN 460  Senior Project  All weeks

MB650 Legal Issues of Employment All Week Assignment answers

MB650 Legal Issues of Employment_All Week Assignment answers

MB650 Legal Issues of Employment_All Week Assignment answers

MB650 Legal Issues of Employment_All Week Assignment answers

MB650 Legal Issues of Employment_All Week Assignment answers

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Coogly Company is attempting to identify its weighted average cost of capital_Only Excel worksheet Answer

Coogly Company is attempting to identify its weighted average cost of capital_Only Excel worksheet Answer

“Coogly Compaidentify its ny is attempting to weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation to the company’s management team. The company would like for you to keep your presentation to approximately 10 slides and use the notes section in PowerPoint to clarify your point. Your presentation should address the following questions and offer a final recommendation to Coogly. Make sure you support your answers and clearly explain the advantages and disadvantages of utilizing the weighted average cost of capital methodology. Include at least one graph or chart in your presentation.
The capital structure for the firm will be maintained and is now 10% preferred stock, 30% debt, and 60% new common stock. No retained earnings are available. The marginal tax rate for the firm is 40%.”

A. Coogly has outstanding preferred stock That pays a dividend of $4 per share and sells for $82 per share, with a floatation cost of $6 per share. What is the component cost for Coogly’s preferred stock? What are the advantages and disadvantages of using preferred stock in the capital structure?

B. If the company issues new common stock, it will sell for $50 per share with a floatation cost of $9 per share. The last dividend paid was $3.80 and this dividend is expected to grow at a rate of 7% for the foreseeable future. What is the cost of new equity to the firm? What are the advantages and disadvantages of issuing new equity in the capital structure?

C. The company will use new bonds for any capital project, according to the capital structure. These bonds will have a market and par value of $1000, with a coupon rate of 6% and a floatation cost of 7%. The bonds will mature in 20 years and no other debt will be used for any new investments. What is the cost of new debt?
D. Given the component costs identified above and the capital structure for the firm, what is the weighted average cost of capital for Coogly?
What are the advantages and disadvantages of using this method in the capital budgeting process?

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Accounting Principles 10th edition P20-1 A_P21-6A_BE 20-5_BE 20-6 BE 20-7 Answer

Accounting Principles 10th edition P20-1 A_P21-6A_BE 20-5_BE 20-6 BE 20-7 Answer

Accounting Principles 10th edition P20-1 A_P21-6A_BE 20-5_BE 20-6_BE 20-7_Question

BE20-5) Data pertaining to job cost sheets for Alomar Tool & Die are given in BE20-3 and BE20-4. Prepare the job cost sheets for each of the three jobs. (Note: You may omit the column for Manufacturing Overhead.)

BE20-6) Formu Company estimates that annual manufacturing overhead costs will be $800,000. Estimated annual Operating activity bases are: direct labor cost $500,000, direct labor hours 50,000 and machine hours 100,000. Compute the predetermined overhead rate for each activity base.

BE20-7) During the first quarter, McKay Company incurs the following direct labor costs: January $40,000, February $30,000, and March $50,000. For each month, prepare the entry to assign overhead to production using a predetermined rate of 90% of direct labor cost.

P20-1A) Bynum Manufacturing uses a job order cost system and applies overhead to production on the basis of direct
Problem 20-1A

Bynum Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2012, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job No. 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.

During the month of January, Bynum Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $90,000 on account.
2. Incurred factory labor costs of $65,000. Of this amount, $16,000 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,000; indirect labor $15,000; depreciation expense on equipment $19,000; and various other manufacturing overhead costs on account $20,000.
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $10,000 $5,000
51 39,000 25,000
52 30,000 20,000

Your answer is correct.

Calculate the predetermined overhead rate for 2012, assuming Bynum Manufacturing estimates total manufacturing overhead costs of $1,050,000, direct labor costs of $700,000, and direct labor hours of 20,000 for the year.

Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50.
Prepare the journal entries to record the purchase of (a) raw materials, the (b) factory labor costs incurred, and the (c) manufacturing overhead costs incurred during the month of January. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the journal entries to record the assignment of (a) direct materials, (b) direct labor, and (c) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in part (a). (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the journal entry (or entries) to record the completion of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the journal entry (or entries) to record the sale of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

What is the balance in the Finished Goods Inventory account at the end of the month?

What is the amount of over- or underapplied overhead?

P21-6A) Martine Processing company uses a weighted-average process costing system and manufactures a single product – a premium rug shampoo and cleaner. the manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the mixing and cooking department is shown below.

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