E3-39B Record manufacturing overhead (Learning Objectives 5 & 6) Refer to the data in Exercise E3-38B. Patel Foundry’s accountant found an error in the

expense records from the year reported. Depreciation on manufacturing plant and equipment was actually $405,000, not the $495,000 it had originally reported. The unadjusted

Cost of Goods Sold balance at year-end was $620,000.

Requirements

1. Prepare the journal entry (entries) to record manufacturing overhead costs incurred.

2. Prepare the journal entry to record the manufacturing overhead allocated to jobs in

production.

3. Use a T-account to determine whether manufacturing overhead is underallocated or

overallocated, and by how much.

4. Record the entry to close out the underallocated or overallocated manufacturing

overhead.

5. What is the adjusted ending balance of Cost of Goods Sold?​

Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."

Suppose that a firm is considering moving from a batch process to an assembly-line process to better meet evolving market needs. what concerns might the following functions have about this proposed process change: marketing, finance, human resources, accounting, and information systems?

Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?