Answer:
To treat this in the bank reconciliation, the difference of $45 is deducted from the balance per bank.
Explanation:
Based on the information given;
The amount recorded (as a deduction) in the books was in excess of $45 being the difference between the actual amount $749 and the erroneous amount recorded $794.
As such, to reconcile the bank statement balance to the balance in the books, the difference $45 is deducted from the balance per bank.
However, in the computation of the book balance the excess amount $45 is added to the book balance to correct the error.
Answer:
amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage.
Explanation:
Standard quantity per unit is defined as materials that the manufacturer needs to complete a unit of a product. It also allows for inefficiencies such as spoilage and scrap.
It is used by managers to reduce wastage that exists during production by allocation of only the required amount of direct materials in the production process.
Answer:
b. $10,000 and $25,000
Explanation:
For computing the the book value of an asset
, first we have to determine the depreciation expense which is shown below"
So, under the straight-line method, the depreciation expense would be
= (Original cost - residual value) ÷ (useful life)
= ($45,000 - $5,000) ÷ (4 years)
= ($40,000) ÷ (4 years)
= $10,000
For two years, the depreciation would be
= $10,000 × 2 years
= $20,000
In this method, the depreciation is same for all the remaining useful life
Now the book value would be
= Acquired value of an asset - accumulated depreciation
= $45,000 - $20,000
= $25,000
Answer:
$261.42
Explanation:
economic order quantity (EOQ) = √(2SD/H)
S = cost per order = $31
D = annual demand = 776 x 12 = 9,312
H = holding cost = $9 x 36% = $3.24
EOQ = √[(2 x $31 x 9,312) / $3.24] = √178,192.59 = 422.13 ≈ 422
total ordering and holding costs considering EOQ:
ordering costs = (9,312 / 422) x $31 = $684.06
holding costs = $3.24 x (422/2) = $683.64
total = $1,367.70
current costs:
ordering costs = $31 x 12 = $372
holding costs = $3.24 x (776/2) = $1,257.12
total = $1,629.12
annual savings = $1,629.12 - $1,367.70 = $261.42
