Answer: Amortization Expense; Patents
Explanation:
The entry to record the amortization of a patent would include a debit to the amortization expense and a credit to the patents.
The journal entry will be:
Debit Amortization expenses XX
Credit Patents XX
Therefore, the correct option is A.
Coomb's Fashions forecasts sales of $125,000 for the quarter ended December 31. Its gross profit rate is 20% of sales, and its September 30 inventory is $32,500. If the December 31 inventory is targeted at $41,500, budgeted purchases for this quarter should be:
Answer:
Total purchase= $109,000
Explanation:
To calculate the budgeted purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Budgeted purchase:
Production= 125,000*0.8= 100,000
Desired ending inventory= 41,500
Beginning inventory= (32,500)
Total purchase= $109,000
1. A beverage company is having trouble with the production of the dye in their drinks. The color of their drink mix is supposed to be a pale green color, but they often get different results. For each unwanted result, choose the most plausible explanation to help the company improve the formula. (1pts) The color of the drink is too pale after adding the dye to the drink because
Answer: • not enough dye was added to the drink.
Explanation:
The color of the drink is too pale after adding the dye to the drink because (not enough dye was added to the drink)
It should be noted that the reason why the color of the drink is too pale is due to the fact that not enough due was added to the drink.
It should be noted that as more dye is added to the drink, the color intensifies and the reason for the paleness of the colour is because less dye was added.
Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below:
Per Unit
Selling price $1.50
Direct materials $26
Direct labor $3
Variable manufacturing overhead $1
Fixed manufacturing overhead $17
Variable selling expense $2
Fixed selling and administrative expense $18
The above per unit data are based on annual production of 3,000 units of the component. Assume that direct labor is a variable cost. The company has received a special, one-time-only order for 200 units of component S06. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. If XYZ has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit below which the company should not accept the special order?
a. $67 per unit
b. $150 per unit
c. $30 per unit
d. $47 per unit
Answer:
c. $30 per unit
Explanation:
The computation of the minimum price per unit below which the company should not accept the special order is given below:
Direct materials $26
Direct labor $3
Variable manufacturing overhead $1
minimum price per unit $30
Therefore the option c is correct
. A Real estate broker has a fiduciary responsibility to her client and her responsibilities include financial references, orders and examine reports, and must follow ADA title lll. This broker is most likely working for the client as:
A) An affiliate
B) An escrow officer
C) A property manager
D) A designated broker
Answer:
D) A designated broker
Explanation:
In the case when the responsibilities involved the financial references, orders and viewing the reports also at the same time we need to follow ADA title III so this means that the broker should be working for the client as the designated broker
So according to the given scenario, the option d is right
And, the same is to be considered
A customer sells short 1,000 shares of DT at $60 a share on Monday, October 14 and deposits the Regulation T margin requirement. If on October 23 the stock is trading at $75 a share. What would be TRUE about the customer selling?
Solution :
Adjusted Oct 23rd
Maintenance call will be issued, i.e. ,
$ 75k x 0.3 = 22.5 k
Equity only = 15k
Therefore, the account will be adjusted on October 23rd and the margin maintenance call will be issued.
Cash Acme Company Balance Sheet As of January 5, 2021 (amounts in thousands) 13,700 Accounts Payable 3,200 Debt 5,100 Other Liabilities 15,400 Total Liabilities 2,000 Accounts Receivable 3,600 Inventory 900 6,500 Property Plant & Equipment Other Assets 800 Paid-In Capital Retained Earnings Total Equity 7,200 24,500 31,700 38,200 Total Assets 38,200 Total Liabilities & Equity
Update the balance sheet above to reflect the transactions below, which occur on January 6, 2021
1. Receive payment of $12,000 owed by a customer
2. Purchase equipment for $45,000 in cash
3. Issue $85,000 in stock
4. Borrow $67,000 from a bank
What is the final amount in Accounts Payable?
Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars.
Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet).
Answer:
Acme Company
1. Acme Company
Balance Sheet
As of January 6, 2021 (amounts in thousands)
Cash 13,819
Accounts Receivable 3,188
Inventory 5,100
Property Plant & Equipment 15,445
Other Assets 800
Total Assets 38,352
Liabilities and Equity:
Accounts Payable 2,000
Bank Payable 67
Debt 3,600
Other Liabilities 900
Total Liabilities 6,567
Equity:
Paid-In Capital 7,285
Retained Earnings 24,500
Total Equity 31,785
Total Liabilities & Equity 38,352
2. The final amount in Accounts Payable remains $2,000,000, but the Bank Payable increased from zero to $67,000.
Explanation:
a) Data and Calculations:
Acme Company
Balance Sheet
As of January 5, 2021 (amounts in thousands)
Cash 13,700
Accounts Receivable 3,200
Inventory 5,100
Property Plant & Equipment 15,400
Other Assets 800
Total Assets 38,200
Liabilities and Equity:
Accounts Payable 2,000
Debt 3,600
Other Liabilities 900
Total Liabilities 6,500
Equity:
Paid-In Capital 7,200
Retained Earnings 24,500
Total Equity 31,700
Total Liabilities & Equity 38,200
Transaction Analysis:
1. Cash $12 Accounts receivable $12
2. Equipment $45 Cash $45
3. Cash $85 Paid-in Capital $85
4. Cash $67 Bank payable $67
Cash
Beginning balance 13,700
Accounts receivable 12
2. Equipment (45)
3. Paid-in Capital 85
4. Bank payable 67
Ending balance 13,819
Which of the following is an essential element of a valid real estate contract?
Duress
Legal purpose
Misrepresentation
Mutual mistake
Answer:
Legal purpose
Explanation:
The contract is approved when there is an agreement and agreement should be enforced i.e.
Agreement + enforceability = contract
Now the element of the contract that become the contract to be valid is the legal purpose that means the contract that should be made should be legal in the court point of view i.e. feasible
Therefore the second option is correct
A 4-year project has an annual operating cash flow of $42,000. At the beginning of the project, $6,000 in net working capital was required, which will be recovered at the end of the project. The firm also spent $21,900 on equipment to start the project. This equipment will have a book value of $5,460 at the end of the project, but can be sold for $6,920. The tax rate is 21 percent. What is the Year 4 cash flow?
Answer:
Total cash flow $54,613
Explanation:
The computation of the year 4 cash flow is given below:
Selling price of equipment $6,920
Book value at year 4 end $5,460
Capital gain $1,460
Tax on capital gain at 21% $306.6
So, net cash flow from the sale of equipment
= $6,920 - $307
= $6,613
Now year 4 cash flow is
Annual operating cash flow $42,000
Release of working capital $6,000
Net cash flow form sale of equipment $6,613
Total cash flow $54,613
Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor cost for a motor tune-up is given below: Standard Hours Standard Rate Standard Cost Motor tune-up 2.50 $38.00 $95.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 58 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance $ 450 F Labor spending variance $ 500 U Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly pay rate for tune-ups last week.
Answer and Explanation:
The computation is shown below:
1
Labor efficiency variance = Labor spending variance+Labor rate variance
= $450 + $500
= $950U
Now as we know that
Labor efficiency variance = SR × (AH-SH)
950 = $38 × (AH - 58 × 2.50)
950 = $38 × (AH - 145)
25 = AH - 145
AH = 145 + 25
= 170
Actual labor hours = 170 hours
2
Labor rate variance = AH × (SR-AR)
450 = 170 × ($38 - AR)
2.65 = 38 - AR
AR = 38 - 2.65
= $35.35
Henry has a $10,000 car insurance policy with a $400 per claim deductible. Henry is involved in an accident, and his car sustains $7,000 worth of damage. How
much will Henry's insurance company pay?
Answer:
The answer is $6,600
Explanation:
I know this because i got it right when i answered it
Ruston Company Income Statement January 1 to December 31, 2017 (amounts in thousands) 7,800 1,560 6,240 780 700 500 4,260 70 4,190 1,676 2,514 Revenue Cost of Goods Sold (COGS) nl Gross Income Sales, General, & Administrative Expenses (SG&A) Depreciation Expense Other Expenses Earnings Before Interest & Taxes (EBIT) Interest Pre-Tax Income Income Taxes Net Income Between January 1 and December 31, 2017:
1. Accounts Receivable increase by $600,000
2. Accounts Payable increase by $300,000
3. Gross Property, Plant, & Equipment increase by $8,300,000
4. Long Term Debt increases by $700,000 Assume no other changes What is the Net Cash Flow?
Answer:
The Net Cash Flow is -$4,686,000.
Explanation:
Note: The data in this question are merged. The complete question with the sorted data are therefore provided before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answers is now provided as follows:
Net Cash Flow can be determined by preparing the cash flow statement as follows:
Ruston company
Cash Flow Statement
For the Year Ended December 31, 2017
Details $’000 $’000
Cash Flows from Operating Activity
Net Income 2,514
Adjustment to net income
Depreciation expense 700
Increase in accounts receivable (600)
Increase in accounts payable 300
Net Cash Flows from Operating Activity 2,914
Cash Flows from Investing Activity
Increase in Gross Property, Plant, & Eq. (8,300)
Net Cash Flows from Investing Activity (8,300)
Cash Flows from Financing Activity
Increase in Long Term Debt 700
Net Cash Flows from Financing Activity 700
Net Cash Flow (4,686)
Therefore, the Net Cash Flow is -$4,686,000.
Utica Company has offered to supply Kingston's entire annual requirements of the part for $53 each. If Kingston buys the part from Utica instead of making it, Kingston would have no other use for the facilities and 60 percent of the fixed manufacturing overhead would continue. In deciding whether to make or buy the part, the total relevant costs to make the part internally are
Answer:
$480,000
Explanation:
Calculation to determine what total relevant costs to make the part internally are
First step is to calculate Relevant cost per unit:
Relevant cost per unit:
Direct materials $6
Direct labor $24
Variable manufacturing overhead $12
Fixed manufacturing overhead ($15 × 0.40) $6
Relevant manufacturing cost $48
Now let determine the Total relevant costs to make the part internally
Total relevant costs to take the part internally=($48 × 10,000)
Total relevant costs to make the part internally = $480,000
Therefore total relevant costs to make the part internally are $480,000
Consider the following information about production in quarter 1 of 2019. Firm T produces 600 tires at a cost of $28 each, and sells 580 tires to Firm B at a cost of $39 each.Firm B produces 290 bicycles at a total cost of $330 each, and sells 280 bicycles to consumers for $400 each. In this simple economy, what is the value of inventory investment
Answer:
$3,860
Explanation:
Value of stock at the end of Firm T:
Firm T has stock of 20 tires at the end of the year
The cost price is $28 per tire
Value = Closing stock * Cost price of each tIres
Value = 20 * $28
Value = $560
Value of stock at the end of Firm B:
Firm B has stock of 10 bicycles at the end of the year
The cost price is $330 each
Value = Closing stock * Cost price of each bicycle
Value = 10 * $330
Value = $3,300
Value of the inventory investment = Value of stock at the end of Firm T + Value of stock at the end of Firm B
Value of the inventory investment = $560 + $3,300
Value of the inventory investment = $3,860
Job order versus Process Costing Which of the following industries would typically use job order costing, and which would typically use process costing? Steel manufacturing Business consulting Web designer Computer chip manufacturing Candy making Designer clothes manufacturing
Answer:
Job order versus Process Costing
Industries using job order costing:
Business consulting
Web designer
Designer clothes manufacturing
Industries using process costing:
Steel manufacturing
Computer chip manufacturing
Candy making
Explanation:
In job order costing, the manufacturer tracks its prime costs to individual products or jobs. This means that the costs of each job can be computed separately because costs are traced to each job. Under process costing, the prime costs are tracked to the department or process or batch, and not to individual products or jobs.
For the month of September, Florida, Inc., incurs a direct materials cost of $12,000 for 7,500 gallons of strawberry lemonade produced in its Mixing Department. It also incurs conversion costs of $6,000 with 80% completed. If the conversion cost per equivalent unit was $1.15 per gallon in August, what is the difference in the conversion cost per equivalent unit between the two months
Answer:
Florida, Inc.
The difference in the conversion cost per equivalent unit between the two months is:
= $0.15.
Explanation:
a) Data and Calculations:
Direct materials cost = $12,000
Production units (gallons of strawberry lemonade) = 7,500
Conversion costs = $6,000
Degree of completion of conversion = 80%
Equivalent units of conversion = 6,000 (7,500 * 80%)
Therefore, the conversion cost per equivalent unit = $1.00 ($6,000/6,000)
The difference in the conversion cost per equivalent unit between the two months is $0.15 ($1.15 - $1.00)
Al owned a family high-deductible health policy as part of his MSA for the entire year. What is his maximum permitted contribution to the MSA in 2020 if his deductible is $5,000?
Other things the same , as the price level rises, the real value of money a. falls and the exchange rate rises. b. and the exchange rate fall. c. rises and the exchange rate falls. d. and the exchange rate rise.
Answer:
falls and the exchange rate fall.
Explanation:
Increase in general price level is referred to an inflation.
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
When price level rises, the real value of money decreases
For example, imagine that price of an apple is $5. If you have $100, you can by 20 apples. If price level increases by 100%, $100 would only buy 10 apples. thus, the real value of money decreases
Also exchange rate falls. exchange rate is the rate at which one currency is exchanged for another currency
If price level increases, domestic currency would become cheaper. As a result, exchange rate falls
Financial information is presented below: Operating Expenses $ 89300 Sales Returns and Allowances 17000 Sales Discounts 11700 Sales Revenue 320900 Cost of Goods Sold 173900 The amount of net sales on the income statement would be
Answer:
Net sales = 292200
Explanation:
Below is the given values:
Operating expenses = $89300
Sales return = 17000
Sales discounts = 11700
Sales revenue = 320900
Cost of goods sold = 173900
Net sales = Sales revenue - Sales discount - Sales return
Net sales = 320900 - 11700 - 17000
Net sales = 292200
The journal entry to record direct labor used in process costing is a(n): Multiple choice question. increase in assets and an increase in equity. decrease in assets and a decrease in liabilities. decrease in assets and a decrease in equity. increase in assets and an increase in liabilities.
Answer:
Increase In Assets and an increase in liabilities
Explanation:
DIRECT LABOUR can be seen or defined as the labour a person or an individual put in the production of goods and services in which they are been paid for as wages.
Therefore The journal entry to record DIRECT LABOR USED IN PROCESS COSTING is a(n):
INCREASE IN ASSETS and AN INCREASE IN LIABILITIES reason been that in direct labour used in process costing an increase in Asset will as well lead to Increase in Liabilities.
On January 1, 2021, Red Inc. issued stock options for 250,000 shares to a division manager. The options have an estimated fair value of $7 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 6% in three years. Red initially estimates that it is probable the goal will be achieved. Ignoring taxes, what is compensation expense for 2021
Answer: $583,333
Explanation:
Compensation expense for 2021 = Total compensation / Vesting period
Total compensation:
Assuming the goal given is probable, the total compensation is:
= Number of shares * fair value
= 250,000 * 7
= $1,750,000
Vesting period = number of years goal is to be in effect = 3 years
Compensation expense 2021 = 1,750,000 / 3
= $583,333
Select all the statements that are true about Secondary Markets only.
Answer:
The secondary market is the market in which securities are traded. This market no longer accumulates new financial resources for the issuer, but only reallocates resources among subsequent investors.
As a resale mechanism, it allows investors to freely buy and sell securities. In the absence of a secondary market or its weak organization, the subsequent resale of securities would be impossible or difficult, which would discourage investors from buying all or part of the securities. As a result, society would be left on the losing side, since many, especially the newest, undertakings would not receive the necessary financial support.
Bear Claw Industries uses a job-order costing system. The Molding Department applies overhead based on machine hours, while the Assembly Department applies overhead based on direct labor hours. The company made the following estimates at the beginning of the current year:
Molding Assembly
Manufacturing overhead cost $700,000 $400,000
Machine hours 10,000 4,000
Direct labor hours 12,000 16,000
The following information was available for Job No. 7-29, which was started and completed during August:______.
Job No. 7-29
Molding Assembly
Direct materials $3,500 $ 7,500
Direct labor $9,000 $12,500
Direct labor hours 900 1,250
Machine hours 500 400
The predetermined overhead rate for the molding department is:_____.
a. $50.
b. $70.
c. $100.
d. $83.
Answer:
Molding= $70 per machine hour
Explanation:
Giving the following information:
Molding
Manufacturing overhead cost $700,000
Machine hours 10,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Molding= 700,000 / 10,000
Molding= $70 per machine hour
Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor
Answer:
a. Paying higher wages can reduce a firm's training costs. b. Higher wages attract a more competent pool of workers. d. Paying higher wages helps workers to be healthier in some developing countries.Explanation:
Paying higher than average wages will help a company retain staff who would appreciate being paid so much. There will therefore be less workers leaving the company which means that there would be no need to train new staff.
Higher wages also attracts more competent workers because competitive wages attract better talent who would want to work for a company that adequately compensates them for their higher skillset.
Developing countries tend to have low minimum or rather low equilibrium wage rates in order to get companies to employ more people. This usually does not reflect the economic situation in he country so paying above this rate will ensure that the employees are better taken care of which would leave them healthier.
The following is TRUE about Inventory: A. Firms increase inventory because there is an opportunity cost to holding inventory B. Firms increase inventory because more inventory sitting for longer periods of time present more opportunities for damage, errors, rework, theft, and obsolescence C. Firms increase inventory because more inventory means more movement of materials D. Firms increase inventory because there is a risk of significant and unpredictable fluctuations in downstream demand E. Firms increase inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures
Answer:
I don't know how it is possible
xyz's corporation has an investment in 20,000 shares of wallace company common stock with a cost of $872,000. these shares are used in a property dividend to stockholders of xyz's. the property dividend is declared on may 25 and scheduled to be distributed on july 31 to stockholders of record on june 15. the fair value per share of wallace stock is $63 on may 25, $66 on june 15, and $68 on july 31. the net effect of this property dividend on retained earnings is a reduction of
Answer:
XYZ's Corporation
The net effect of this property dividend on retained earnings is a reduction of:
= $388,000.
Explanation:
a) Data and Calculations:
Cost of investment in Wallace Company = $872,000
Property dividend declaration date = May 25
Property dividend distribution date = July 31
Property dividend date of record = June 15
Fair value per share of Wallace shares:
May 25 = $63
June 15 = $66
July 31 = $68
Amount of property dividend declared = $1,260,000 ($63 * 20,000)
Analysis of entries:
May 25:
Property dividend $872,000 Loss on Distribution $388,000 Property Dividend Payable $1,260,000
July 31:
Property Dividend Payable $1,260,000 Cash $1,260,000
Management of Carla Vista Home Furnishings is considering acquiring a new machine that can create customized window treatments. The equipment will cost $199,550 and will generate cash flows of $104,750 over each of the next six years. If the cost of capital is 13 percent, what is the MIRR on this project
Answer:
MIRR = 27.85%
Explanation:
Below is the calculations:
The cost of equipment, Present value = $199550
Generate cash flow each year = $104750
Time = 6 years
Now find the future value of annual cash flow = 104750 (F/A , 13%, 6)
The future value of annual cash flow =104750 x 8.3227
The future value of annual cash flow = $871802.825
Now find the MIRR = (871802.825 / 199550)^(1/6)-1
MIRR = (4.3688)^(1/6)-1
MIRR = 27.85%
What can organizations do to keep rewards individualized enough to meet various employee needs (needs theory) while trying to ensure that everyone feels that all the different rewards are fair (equity theory)
Answer:
The best way to go about this is to design and operate and rewards system that recognizes individual needs as summarized and proposed by David McClelland.
The theory of equity on the other hand speaks to the perception of how input is compensated for in relation to those of others. Human beings (workers) will come with varying degrees of skills and input.
So to customize rewards in such a way that it recognizes unique contributions in an equitable way, one must first decide what key skills will be required for each job and which jobs are required to achieve organizational goals and objectives.
Explanation:
The Needs Theory by David Mclelland summarizes individual needs into three. They are:
Achievement AffiliationPowerA balanced reward system will have financial and non-financial benefits. some of the non-financial benefits will be tailored to have the above components.
- Achievement: An example of this is - Opportunity for higher assignments
- Affiliation: The need to belong to a strong Employer brand
- Power: This answers the question about whether or not one will become more influential as they progress with the company
The equity theory will guide the business owner in ensuring that all selected metrics of input are classed and priced accordingly.
The usual form of input include but are not limited to:
Ability Adaptability Commitment Determination Education Effort Enthusiasm Experience Flexibility Hard Work Loyalty Personal sacrifice Skill Support from co-workers and colleagues Time Tolerance Trust in supervisorsEquity sometimes is difficult to achieve due to issues with capacity on the part of the company. Best practice, however, is to recognize equity first from the perspective of standard industry practice, then match or exceed such offering by a combination of Financial and Non-Financial rewards that are based on the strength of the organization.
Another strategy is for organizations to adapt it's reward systems to Achievement Based Compensation. This type of compensation instead of focusing on the inputs listed above focuses on results.
In this case, expected results and capacity to deliver and subsequent rewards on same are discussed and agreed upon.
Minimum requirements are also defined ahead of time. Under this kind of structure, equity is achieved, and individual needs are recognized.
Cheers
It is essential that organizations meet the needs of employees on an individual basis and ensure that everyone feels that the different rewards are fair. This can be achieved by implementing a culture focused on integration, collaboration and open and clear communication.
What is Equity theory?It is a theory that explains how motivation in the workplace is related to the perception of employees through their sense of justice, that is, employees compare their work inputs and outputs in relation to others.
Therefore, by creating open communication and an effective reward system, employees can have their needs met and create a strong sense of appreciation for their work.
Find out more about Equity theory here:
https://brainly.com/question/26507171
Rodriguez Company pays $363,285 for real estate with land, land improvements, and a building. Land is appraised at $198,000; land improvements are appraised at $66,000; and a building is appraised at $176,000. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Answer:
1.Land $163,478
Land Improvement $54,493
Building $145,314
2.Dr Land $163,478
Dr r Land Improvement $54,493
Dr Building $145,314
Cr Cash $363,285
Explanation:
1. Calculation to Allocate the total cost among the three assets
First step is to Add up all expenditure costs Total Expenditure costs =$198,000+$66,000+$176,000
Total Expenditure costs =$440,000
Second step is to divide each expenditure up by the total amount
Land=($198,000/$440,000= 0.45)
Land improvement=($66,000/$440,000= 0.15)
Building=($176,000/$440,000= 0.40)
Now let Allocate the total cost among the three assets
Land=0.45* $363,285
Land = $163,478
Land improvement=0.15*$363,285
Land Improvement=$54,493
Building=0.40*$363,285
Building=$145,314
Total $363,285
($163,478+$54,493+$145,314)
Therefore the total allocation cost among the three assets is:
Land $163,478
Land Improvement $54,493
Building $145,314
2. Preparation of the journal entry to record the purchase
Dr Land $163,478
Dr r Land Improvement $54,493
Dr Building $145,314
Cr Cash $363,285
(To record purchase)
The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: Raw Materials Work in Process Credit Credit Debit Beginning Balance Debit Beginning Balance 9,000 22,200 5,000 5,200 4,100 6,200 8,500 8,300 Finished Goods Manufacturing Overhead Credit Debit Credit Debit Beginning Balance 20,400 8,300 2,200 22,200 2,800 3,500 3,200 Cost of Goods Sold Debit Wages & Salaries Payable Credit 20,400 Beginning Balance Debit Credit 20,400 2,500 12,000
The direct labor cost was:
a. $20,400
b. $13.100
Answer:
$8,500
Explanation:
The computation of the direct labor cost is given below
The raw material issued should be
= 6,200 + 2,800
= 9,000
The manufacturing overhead applied is 8,300
So, here the amount should be from both work in process and manufacturing overhead
Therefore the remaining amount i.e. $8,500 should be the direct labor cost
The Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid for months of advertising. How much advertising expense should Law Firm record for the two months ending February 28 under the
a. cash basis
b. accrual basis?
Answer and Explanation:
The computation of the advertising expense that should be record for the two month under following basis is
a. For cash basis
It should be recorded at $2,000
b. For accrual basis
= $2,000 ×2 ÷5
= $800
In this way, it should be determined
And, the same should be relevant
