Uestion 5

Tamarisk should report an inventory amount of $252,000 as of December 31. To arrive at this figure, consider the following calculation: Inventory = Stock on hand + goods acquired from Sheffield Corp + goods sold to Wildhorse Co. This gives us the calculation: $190,000 + $29,000 + $33,000 = $252,000. All relevant amounts were taken into account, including considerations for FOB destination and FOB shipping point, which contribute to the physical inventory count.

The suitable reply consists of well-structured selections. Such choices may vary between organized and chaotic. Notably, organized options follow a clear method for problem-solving and possess the necessary information to make decisions.

Answer:

Explanation:

Initial WIP inventory                    74000  

Add: Units initiated in May           390000  

Subtract: Final inventory                  34000  

Completed and moved units       430000  

1                        Equivalent Units

                                                            Whole units Materials    Conversion

Initial WIP inventory                    74000           74000        74000

Units started and finished            356000     356000        356000

Final inventory                                34000           23800         10200

Total units accounted for           464000         453800        440200

                                                                Materials Conversion  

Production equivalent units         453800    440200  

2    

Cost Information:                       Total Material Conversion

Initial WIP inventory                  142800     98800       44000

Costs incurred during May                      755960    513830      242130

Total costs needing accounting          898760    612630      286130

Divided by Equivalent units                                    453800 440200

Cost per Equivalent unit                           2.00      1.35 0.65

Materials Conversion  

Cost per Equivalent unit                           1.35 0.65  

3    

Cost Allocation:    

Ending Work in process:    

Material                                                 32130  

Conversion                                            6630  

Total Ending Work in process             38760  

4    

Cost of completed and transferred units    

Material                                                 580500  

Conversion                                            279500  

Total costs                                                       860000  

5    

Costs to be accounted for:    

Initial WIP inventory                       142800  

Current expenses                                          755960  

Overall costs to be accounted for            898760  

Costs accounted for include:    

Cost of completed and moved units 860000  

Cost of ending work in process            38760  

Overall accounted costs                      898760  

Contributor to quality and satisfaction. Service experiences stem from the interaction dynamics between customers and the organization. Customer satisfaction is fundamental for any service provider. In certain situations, customers significantly impact the satisfaction obtained and the perceived value of the service. Additionally, they contribute to achieving quality and productivity during service delivery.

Answer:

Based solely on the provided information, the answers are:

a. The accounts receivable balance reported on the December 31, Year 1, balance sheet will be $4,000.

b. A net income of $18,000 will be recorded on the Year 1 income statement.

c. A net cash flow of $14,000 from operational activities will be shown on the Year 1 cash flow statement.

d. Retained earnings amounting to $18,000 will appear on the Year 1 balance sheet.

Explanation:

a.

Service revenue recorded on account for Year 1 totaled $18,000

Cash collected from accounts receivable during Year 1 amounted to $14,000

Thus, on December 31, Year 1, the accounts receivable balance stands at $18,000-$14,000 = $4,000

b. Only the $18,000 service revenue earned within Year 1 will be reported on the income statement.

c. The cash transaction recorded for the year sums to $14,000 received from customers, which is reflected in the Year 1 cash flow statement.

d. The retained earnings indicated on the Year 1 balance sheet amount to $18,000