Record the Following Transactions on the Books of Franklin College,a

question 50

Essay

Record the following transactions on the books of Franklin College,a private college.All of the transactions are for the year 2014.
(a)The College received $312,000 in funds that were pledged in 2013,to be used for unrestricted purposes in 2014.
(b)The College was awarded $750,000 in grants that are to be used for restricted research purposes.$510,000 in cash was received,and $620,000 was expended on these projects.
(c)On Dec.1,the College received a pledge of $5,000,000 to build a new basketball arena.The funds were not expended or received in 2014,but are expected to be received early in 2015.
(d)The College had received cash of $200,000 in 2013 to be used to purchase computer equipment for the student labs.The equipment was purchased and put into service in early January 2014.The equipment has a five-year life and the College follows the practice of maintaining the balance of fixed assets (net of depreciation)in the temporarily restricted net asset category.
(e)On Dec.31,the College received an unrestricted pledge to receive $20,000 per year each year for six years,beginning on December 31,2014.The first installment of $ 20,000 was received on that date.The discount rate is 6%.The present value of six payments of $20,000 is $104,248.

Recognize the benefits and applicability of multiple production department factory overhead rates.

Calculate factory overhead rates and understand their implications on product costing.

Identify the consequences of using a plantwide factory overhead rate when there are significant differences in activities causing overhead costs across departments.

Distinguish between plantwide and multiple production department factory overhead rates in terms of accuracy and application.

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Definitions:

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for connecting the central nervous system to limbs and organs.

Central Nervous System

The part of the nervous system that consists of the brain and spinal cord, responsible for processing and sending out information to the rest of the body.

Output

The final product or result that comes from a system, process, or activity.

Peripheral Nervous System

The part of the nervous system that lies outside the central nervous system, consisting of nerves and ganglia, and connects the CNS to limbs and organs.