marks corporation has two operating departments, drilling and grinding, and an office. the three categories of office expenses a
1 answer:
The correct answer is $35750
The amount of depreciation that should be allocated to drilling for the current period is $35750
<h3>How does depreciation work?</h3>Depreciation is the process of subtracting the entire cost of an expensive item you purchased for your company. However, you write off portions of it over time rather than completing it altogether in one tax year. Depreciating assets gives you more control over your budget because you may schedule how much money is written off annually.
<h3>How much depreciation should be devoted to drilling throughout the current time frame?</h3>Office costs: Salaries are $30,000, depreciation is $20,000, and advertising is $40,000. The total number of employees for drilling and grinding is 2500.
The overall net sales for drilling are 375 000, for grinding they are 450 000.
Drilling costs are 75,000, grinding costs are 125,000, and overall costs are 200000.
then,
Salaries: $30,000×=$12,000
Depreciation: $20,000×=$7,500
Advertising: $40,000× =$16,250
Total $35,750
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question options are wrong the correct question is:
marks corporation has two operating departments, drilling and grinding, and an office. the three categories of office expenses are allocated to the two operating departments using different allocation bases. the following information is available for the current period: office expenses total allocation base salaries $ 30,000 number of employees depreciation 20,000 cost of goods sold advertising 40,000 percentage of total sales department number of employees sales cost of goods sold drilling 1,000 $ 325,000 $ 75,000 grinding 1,500 475,000 125,000 total 2,500 $ 800,000 $ 200,000 the amount of depreciation that should be allocated to drilling for the current period is: multiple choice $25,000. $12,500. $7,500. $20,000. $35750. this is a correct option.
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Answer:
Explanation:
The closing entries for the following accounts are shown below:
1. Service Revenue A/c Dr $44,000
To Income Summary $ 44,000
(Being revenue account closed)
2. Income Statement Dr $33,100
To Depreciation Expense of Equipment $3000
To Salaries Expense $22,000
To Insurance Expense $2,500
To Rent Expense $3,400
To Supplies Expense $2,200
(Being expenses accounts are closed)
3. Income summary A/c Dr $10900
To T. Cruz Capital A/c $10900
(Being the difference is credited to capital account)
4. T. Cruz, Capital A/c Dr $7,000
To T. Cruz, Withdrawals A/c $7,000
(Being withdrawal account is being closed)
The preparation of the trial balance is presented in the spreadsheet. Kindly find the attachment below:
