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-Dominant- [34]
3 years ago
6

Direct labor and indirect labor are recorded, respectively, to:A. Factory Overhead and Goods in Process.B. Goods in Process and

Finished Goods.C. Finished Goods and Goods in Process.D. Goods in Process and Factory Overhead.E. Cost of Goods Sold and Finished Goods.
Business
1 answer:
alexgriva [62]3 years ago
4 0

Answer: The correct answer is "D. Goods in Process and Factory Overhead."

Explanation: Direct labor: it is the labor consumed in the areas that are directly related to production. It is generated by the workers or operators of the company. It is part of the cost that is incorporated directly into the product. Therefore it is registered as goods in process.

Indirect labor: it is the labor consumed in the administrative areas of the company or that production staff that does not participate directly in the production of the good. As it is part of the cost that is indirectly incorporated into the product, it is considered factory overheads.

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All of the following are examples of indirect labor except a.machine operators b.plant managers c.maintenance personnel d.janito
trapecia [35]

Answer:

The correct answer is (a)

Explanation:

Indirect cost is a cost that is related to transforming the product from raw to finished good.  Plant manager, maintenance manager and janitorial personnel all help in the process of transforming a good that is why they are the example of indirect labour cost. Machine operators are not an example of indirect cost as it is a specific duty and not a job which requires doing different duties it is a direct cost

3 0
4 years ago
Macon Vitamins sells a variety of vitamins and herbal supplements to small health food stores. Macon purchases the vitamins and
ira [324]

Answer:

The variable cost is the cost which increases or decreases with the level of output of a company. There is direct relationship between variable cost and output of a firm.

The fixed costs are the costs which remains the same with any level production.

A step cost refers to a cost which remains constant at a particular level and vary after that level.

A mixed cost is a combination of both variable and fixed cost. Such as electricity companies which charges a fixed amount as well as variable cost according to the units consumed.

Therefore, the list are as follows:

(a) Variable cost

(b) Fixed cost

(c) Variable cost

(d) Fixed cost

(e) Step cost

(f) Fixed cost

(g) Mixed cost

3 0
3 years ago
Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had ap
podryga [215]

Answer:

Cost of Goods Sold will decrease by $2,679 after proration.

Explanation:

Under-applied or over applied overhead:

= Overhead incurred - Overhead applied

= $76,000 - $79,700

= (-$3,700)

Therefore, the Cost of Goods Sold after the proration:

= (over applied overhead × Overhead applied to COGS) ÷ Total overhead applied to cost of goods sold and finished goods

= ($3,700 × $57,700) ÷ ($57,700 + $22,000)

= $213,490,000 ÷ $79,700

= $2,679

Hence, the Cost of Goods Sold will decrease by $2,679 after proration.

3 0
3 years ago
The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,460,000, $152,000 in the common stock account,
elixir [45]

Answer:

Follows are the solution to this question:

Explanation:

Formula:

\text{Asset cash flow = creditors cash flow + equity cash flow}\\\\ \text{creditors cash flow = payment of interest-net new loans}\\\\ \text{Cash flow to lenders = interest charged}-( LTD_{end}-LTD_{beg}) \\

\text{Cash flow} =100000 -(1700000- 1460000) = - \$ 140,000 \\

\text{Shareholder cash flow = paid dividends-net new shares} \\\\\text{Cash flow = interest paid - (Common} + APIS_{end})- \text{(Common +} APIS_{beg}))\\\\

\text{Cash flow to the inventory holders}=  157000 -(162000 +3070000))-(152000+2770000) = - \$ 5997000

\text{Asset cash flow = - \$ 6,137,000}

6 0
4 years ago
Hughes Aircraft sold a four-passenger airplane for $380,000, accepting a 12% note for the purchase price. This transaction would
Semmy [17]

Answer:

a. Debit to Notes Receivable

Explanation:

Journal entry for selling an asset in return for notes receivable is;

Notes Receivable A/c                                                Dr.

    To Asset A/C

In the given case, an aircraft is sold in exchange for a note receivable. The journal entry would be:

12% Notes Receivable A/C                                Dr. $380,000

     To Aircraft                                                                             $380,000

(Being notes receivable received in exchange for aircraft sold being recorded)

Notes Receivable is an asset for the receiver as it represents amount which is due to be received. Whenever an asset account is debited, it increases their balance.

Aircraft is an asset. When an asset is sold, it is credited. Here the asset being a movable asset.

5 0
4 years ago
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