Answer:
Using the cost method means that the stock is recorded at the price it cost to buy it back.
Journal entry is therefore:
Date Account Title Debit Credit
Aug 1, 2014 Treasury Stock $72,000
Cash $72,000
<u>Working:</u>
= 4,000 shares * 18
= $72,000
Answer:
b. Manufacturing Overhead Control.
Explanation:
As we know that, indirect labor cost is a manufacturing overhead which deals with all types of indirect cost like - indirect material, indirect labor, Factory machinery depreciation, rent, and salaries expense to the manufacturing personnel, etc
These are the costs that are not directly connected to the product's production.
So, in the given case, the indirect labor cost is normally recorded to the debit side of the manufacturing overhead control account
Answer:
total variable cost increases
Explanation:
Variable cost refers to the expenses that change with production volume. There is a direct relationship between variable costs and the level of production. An increase in the output level will result in a rise in variable costs. For sales volume to increase, the output level must have been high.
A high production level is necessary to support a high sales volume. Examples of variable costs are packaging and raw materials. A high output level will require the use of a large volume of raw materials, hence higher costs. Fixed cost contrast variable costs, as they do not change with varying output.
Answer:
The journal entries are as follows:
(i) Insurance expense A/c Dr. $160
To prepaid insurance $160
(To record the insurance expense)
Workings:
Insurance expense = cost of insurance policy ÷ 36 months
= $5,760 ÷ 36 months
= $160
(ii) Advertising expense A/c Dr. $1,160
To prepaid advertising $1,160
(To record the advertising expense)
Workings:
Advertising expense = cost of advertisement ÷ 24 months
= $27,840 ÷ 24 months
= $1,160
Answer:
wut is this
Explanation:
financial acc practice ex 1