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MAVERICK [17]
3 years ago
10

A favorable cost variance occurs when actual costs are more than standard costs standard costs are more than actual costs standa

rd costs are less than actual costs actual costs are the same as standard costs
Business
1 answer:
Orlov [11]3 years ago
6 0
A favorable cost variance occurs when: <span>Standard costs are more than actual costs
Standard cost refers to the cost that projected to happen when acquiring an asset. Meanwhile, actual cost refers to the total cost that actually happens when acquiring that asset.

</span>
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Waddell Company had the following balances in its accounting records as of December 31, 2018
Molodets [167]

1. The  two additional adjusting entries   are:

•Rent Expenses $5,225

•Revenue $3,700

2.  Balance sheet reported  is $42,000

3.  Netnet cash flow from operating activities  is $37,500

4. Rent expenset is $5,225$5,225

5.  Totaltotal liabilities is $23,770

6.  Supplies expense   $800

7.    Unearnedunearned revenue  is $3,700

8.    Netnet cash flow  is ($10,000)

9.   Totaltotal expenses is $24,125

10.   Total  service revenue is $71,700

 11.   Cash cash  Cash flows from financing activities  is $45,600

12.   Netnet income  is $26,216

13.   Retainedretained earnings  is $43,216

1. Additional adjusting entries that must be made are:

•Part of the Prepaid rent of the amount of $5,225 will be  allocated to the rent expense

Rent Expenses $5,225

($5,700 x 11/12 = $5,225)

•Part  of the revenue received in advance of the amount of  wi$3,700ll  be recognized as revenue

Revenue

($7,400 x 6/12 = $3,700)



2. Beginning balance $32,000

Add Cost of Land purchased $32,000

Less Cost of Land sold ($22,000)

Ending balance $42,000

3.Cash received from customers

Received cash in advance as a retainer for services to be performed monthly over the coming year $7,400

Received cash collections from accounts receivable $54,000

Cash Paid to Suppliers:

Paid cash in advance for a one-year lease for office space $(5,700)

Made a cash payment on accounts payable $(20,000)

Cash flow from operating activities $35,700

4.Rent for 12 months $5,700

Less Rent per months $475

($5,700/12)

Rent expense $5,225

5. Accounts Payable:

Beginning balance $23,000

Cash payment on accounts payable $(20,000)

Purchased supplies on account $970

Incurred other operating expenses on account $13,000

Balance of Accounts Payable $16,970

Unearned Income $3,700

Accrued salaries expense $5,100

Total Liabilities $23,770

($16,970+$3,700+$5,100)

6.Supplies purchased $970

Less Supplies on hand ($170)

Supplies expense $800

7.Revenue received ion July 1 for 12 months contract $7,400

50% earned in the year $(3,700)

Unearned revenue of the balance sheet $3,700

8. Cash used to purchase land $(32,000)

Proceeds from the sale of land $22,000

Cash used by investing activities $(10,000)

9. Lease for office space $5,225

Supplies $800

Other operating expenses $13,000

Salaries expense $5,100

Total expenses $24,125

10. Revenue earned from retainer received in advance $3,700

Service revenue on account $68,000

Total Service Revenue $71,700

11. Issue of common stock $48,000

Cash dividend to the stockholders $(2,400)

Cash provided by financing activities $45,600

12.Total Service Revenue $71,700

($3,700+$68,000)

Interest Revenue $116

Total expenses $(45,600)

Net income $26,216

13. Retained Earnings on the balance sheet is:

Beginning balance $17,000

Net income for the year $26,216

Ending balance $43,216



Learn more here:

brainly.com/question/24128263







5 0
2 years ago
Larry is looking for ways to increase the number of different tasks that an employee performs without increasing task complexity
enot [183]

Answer:

Job rotation

Explanation:

Job rotation means moving employees from one job to another so that they are trained to do multiple roles. This way, the tasks of each job stay the same and employees learn these basic tasks for each job they try. An example is a grocery store where the greeter is cross-trained to be a cashier, to collect carts from the parking lot, and to unload boxes onto the shelves.

6 0
3 years ago
Read 2 more answers
Wood County Hospital consumes 1,000 boxes of bandages per week. The price of bandages is $35 per box, and the hospital operates
jarptica [38.1K]

Answer:

= $367.34

Explanation:

<em>Economic order quantity (EOQ)</em><em> is the order quantity that minimizes the balance of holding cost and ordering cost. At the EOQ, the holding costs are equal to the ordering costs.</em>

<em />

EOQ = (2× Co× D)/Ch

Total relevant cost of inventory = ordering cost + Holding cost

Step 1

<em>Total cost of inventory under EOQ </em>

EOQ for Wood County

EOQ = 2√(2× 15 × 1000× 52)/(15%× 35)

 = 545.10 units

<em>ordering cost =( (1000× 52)/ 545.10 ) × 15 = 1,430.90</em>

<em>Holding cost = ( 545.10/ 2)  × 15% × 35 =1,430.90</em>

Total cost =1430.90 + 1430.90= $2,861.81

Step 2

<em>Total cost of inventory using order size of 900 boxes</em>

<em>ordering cost =( (1000× 52)/900 ) × 15 = 866.66</em>

<em>Holding cost = (900/ 2)  × 15% × 35 =  2,362.5</em>

Total cost = <em>866.66 + 2,362.5 =</em> $3,229.16

Step 3

<em>Calculate in savings in total costs</em>

<em>Savings = Difference in total inventory cost of EOQ order size and 900 boxes order size :</em>

=$3,229.16-$2,861.81

= $367.34

Savings = $367.34

3 0
3 years ago
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production
yuradex [85]

Answer:

The following scenarios from the listed are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States. They include;

1) The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government.

2) The variety of goods available to consumers

3) The costs of overfishing and other overly intensive uses of resources.

8 0
3 years ago
False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account. Sales and cash coll
gayaneshka [121]

Answer:

$607,000

Explanation:

False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account.

Sales and cash collections from customers during the year were $650,000 and $610,000, respectively.

False Value estimates that 6% of all sales will be returned.

During 2016, customers returned merchandise for credit of $28,000 to their accounts.

False Value's 2016 income statement would report net sales of:  

The closing balance in the allowance for sales returns account will be: 32,000 opening balance + 6% 0f 650,000 - sales returns within the year of 28,000 = $43,000

Hence Net Sales will be 650,000 - 43,000 = $607,000

5 0
3 years ago
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