Answer:
E. Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.
Explanation:
The journal entry is as follows
Cost of goods sold Dr $839,300
To Finished goods inventory $839,300
(Being the cost of goods sold is recorded)
The computation is shown below:
= Beginning balance of finished goods inventory + transferred of goods completed - ending balance of finished goods inventory
= $160,500 + $837,000 - $158,200
= $839,300
Answer:
credit to Work in Process of $59,000.
Explanation:
Based on the information given the appropriate l journal entries to record these transactions would include a: CREDIT TO WORK IN PROCESS OF $59,000
Dr Finished goods $59,000
Cr Work in process $59,000
Dr Cost of goods sold $65,000
Cr Finished goods $65,000
Answer:
Cost of goods sold will be overstated by $10,000
Net income will be understated by $10,000
Explanation:
The movements in inventory account can be shown as
Opening balance + purchases - cost of goods sold = ending balance
As such, understating the ending balance would result in an overstatement of cost of goods sold. This will in turn result in an understatement of gross and net income.
The amount of the operating cash flow using the top-down approach is<u> $2,200</u>.
<u>Explanation</u>:
<em><u>Given</u></em>:
Sales of production= $6,000
Increase in cash expenses= $2,500
Increase in tax= $1,300
Additional depreciation expense= $1,000
Initial cash outlay= $2,000
Operating cash flow= Sales of production- Increase in cash expenses- Increase in tax
OCF = 6,000-2,500-1,300
= $2,200
So the amount of the operating cash flow using the top-down approach is $2,200.
Answer:please refer to the explanation section
Explanation:
direct labor hours = 39000 hours
Finished Goods = 13000 units
direct labour hours per unit = 3 hours
Direct Labor cost per hour = $12
Direct Labor Cost = 13000 units x 3 hours x $12 = $ 468000.
William corporation will pay $480000 (40000 x $12) as per the contract agreement with labour union but Direct Labor cost to be capitalized on Cost of Finished Goods is $ 468000. The cost of $ 12000 should be treated as an expense
