Answer: $68,200
Explanation:
Estimated inventory = Difference between Goods available for Sale at Retail Price and Actual Sales made * Cost Retail Ratio
Retail value of Goods Available for Sale
= Retail Price of Beginning Inventory + Retail price of Purchases
= 120,000 + 480,000
= $600,000
Difference between Goods available for Sale at Retail Price and Actual Sales made
= 600,000 - 490,000
= $110,000
Cost to retail price ratio
= (Cost of Beginning Inventory + Cost of Purchases) / (Retail Price of Beginning Inventory + Retail Price of Purchases)
= (60,000 + 312,000) / (120,000 + 480,000)
= 62%
Ending inventory
= 110,000 × 62%
= $68,200
Answer:
We use the accounting equation to identify what a company owns and owes. <u>Assets </u>are resources a company owns or controls, <u>Liabilities </u> are claims creditors have against a company’s assets, and <u>Equity </u>is the owner’s claim on a company’s assets.
Explanation:
The accounting equation reads as Assets = Liabilities plus Equity.
The accounting equation forms the basis for preparing the balance sheet and the double-entry accounting system. When well prepared, the assets side should balance with liabilities and equity.
Answer:
<em>Organizing Management Function</em>
Explanation:
Organizing is <em>the management function which includes the creation of an organizational structure as well as the allocation of human resources to ensure that the objectives are achieved.</em>
Gilmore managers are re-allocating the companies resources.
Organization structure is the framework through which activities are organized.
Answer:
a. $21 per machine hours
b. $4,855
Explanation:
a. The computation of the plantwide predetermined overhead rate is shown below:
Plantwide predetermined overhead rate is
= Variable overhead cost rate per machine hour + Fixed overhead cost rate per machine hour
= $2 + (fixed manufacturing overhead cost ÷ Estimated machine hours)
= $2 + ($4,275,000 ÷ 225,000 machine hours)
= $2 + $19
= $21 per machine hour
b. Now the total manufacturing cost assigned is
Particulars Amount
Direct material $1,702
Direct labor $1,221
Variable manufacturing overhead $168
(84 × $2)
Total variable cost $3,091
Add:
Fixed manufacturing overhead
(84 × $21) $1,764
Total manufacturing cost assigned
to Job P90 $4,855
