Order ID:89JHGSJE83839 | Style:APA/MLA/Harvard/Chicago | Pages:5-10 |
Instructions:
Arollaltd Manufacturing Company Accounting System
Question Description
ArollaLtd. is a manufacturing company. In 2020, Arolla implemented a new accounting system to account for its raw materials. Unfortunately, the new system hasn’t worked very well in some areas and, in particular, the accounting for Material XY has been a mess. The controller has asked you to have a look at the information available for Material XY and come up with the ending inventory for the fourth quarter of the year. After several days of hard work,you have obtained the following information:
a)Arollauses average cost to account for its raw material inventory. Each material category is accounted for separately. The company accounts for inventory costs using a periodic accounting system and the inventory is counted near the end of each quarter. Inventory is accounted for FOB destination point;
d)A shipment that was due to be delivered from a supplier on December 28 was delayed at the border and wasn’t received until January 5, 2021. That shipment had 2,000 kilograms of Material XY at a cost of $15,240;
f)Arolla pays for all shipping costs of Material XY it purchases from suppliers. The shipping costs for the Material XY received in the fourth quarter were$12,400.
g)Arolla has a raw materials manager who is responsible for managing the company’s materials. The raw materials manager and her team cost $100,000 in total for the fourth quarter in wages and benefits. About 10% of the raw materials manager and her team’s time and effort pertain to taking care of Material XY.
h)Arolla maintains an allowance for damaged and unusable inventory that it updates at the end of each quarter. At the beginning of the fourth quarter of 2020, the balance in the allowance account was $1,350. The raw materials manager estimates that in the first quarter of 2021,210 kilograms of material XY will be found to be unusable.
i)During the fourth quarter, 30,000 kilograms of Material XY were removed from the warehouse and taken to the manufacturing facility. The cost of moving Material XY was $3,000;
Prepare journal entries for each of the items listed above and prepare any adjusting entries that are necessary. Explain your treatment of each item. Calculate the amount Arollashould report for Material XY at the end of the fourth quarter. State any assumptions you make, including any accounting policies that aren’t stated.
RUBRIC |
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Excellent Quality 95-100%
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Introduction
45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Literature Support 91-84 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met. |
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Average Score 50-85% |
40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided. |
83-76 points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration. |
52-49 points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met. |
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Poor Quality 0-45% |
37-1 points The background and/or significance are missing. No search history information is provided. |
75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration. |
48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met |
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Arollaltd Manufacturing Company Accounting System |
Arollaltd Manufacturing Company Accounting System