Sophia is considering an ultimate career as a construction manager in Los Angeles, California. The

Mega Corporation repurchased 1,000 shares of its $1 par value common stock for $8,000. The effect of this transaction on the acc

Anastasy [175]

Answer:

Decrease in assets

Decrease in stockholder’s equity

6 0

3 years ago

In your progress report, you want the Work Completed section to follow your Summary of Costs. To

iren [92.7K]

Answer:

The best way would be over email is the best way to get your report to ...

Explanation:

<h2>MARK ME BRAINLIEST PLZZZZZZZZZZZZZZZZZZZZZZZZZzzzzzzzzzzzzzzzz</h2>

4 0

3 years ago

Knowledge Check 01 Melas Company changed from the LIFO to the FIFO inventory costing method on January 1, Year 3. Inventory valu

NemiM [27]

Answer:

An adjustment to retained earnings is necessary when when there is a change from LIFO to FIFO.

Calculating the effect on retained earnings:

- In the year 1 company followed LIFO and recorded ending inventory at $177500. Had it followed FIFO it would have recorded at $195000. So there would be increase in income of $17500 (195000 - 177500).

- In year 2 it followed LIFO and recorded opening inventory at $177500 and closing inventory at $355000 and thereby recording Net closing stock of $177500 (355000 - 177500). Had it followed FIFO it would have recorded a net stock of $195000.(390000-195000). So there would be increase in income by of $17500 (195000 - 177500).

So in total of 2 years there would be an increase of $35000 Net income i.e., Retained earnings and increase in stock value of $35000.

The journal entry is:

Inventory A/c Dr $35,000

To Retained earnings A/c $35,000

Explanation:

4 0

3 years ago

Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided th

g100num [7]

Answer:

$289,000

Explanation:

Predetermined overhead rate (Fixed) = Budgeted Fixed overhead cost / Budgeted hours

Predetermined overhead rate (Fixed) = 300,000/60,000

Predetermined overhead rate (Fixed) = $5 per hours

Applied Fixed overhead = Standard hours allowed × Predetermined overhead rate(fixed)

Applied Fixed overhead = 57,800 * $5 per hours

Applied Fixed overhead = $289,000

So, the fixed overhead applied to production during the period is $289,000

8 0

3 years ago

Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly fina

NISA [10]

1)The estimated ending inventory is $48,236

2)The estimated ending inventory is $72,000

Explanation:

1)For the given values the beginning inventory,net purchases, freight-in, cost of goods available for sale , cost of goods sold, net sales, less estimated gross profit, estimated inventory before theft, stolen inventory and estimated ending inventory are calculated in the given system.

The estimated ending inventory is $48,236

2)

For the given values the beginning inventory,net purchases, freight-in, cost of goods available for sale , cost of goods sold, net sales, less estimated gross profit, estimated inventory before theft, stolen inventory and estimated ending inventory are calculated in the given system.

The estimated ending inventory is $72,000

4 0

3 years ago