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3 years ago

Unlike in joint ventures, in contract manufacturing, _____.

2 answers:

5 0

A joint venture is a business entity created by two or more parties by agreeing to pool their resources together for the purpose of accomplishing a specific objective which may be either a project or any other business activity.
Contract manufacturing involves production of goods by one firm under the label or brand of another firm or company. A contract manufacturer contracts with another company to make certain components or products over a mutually agreed period of time.

galben [10]3 years ago

5 0

In Contract manufacturing, a foreign company, first produces the good within own private label goods.Then these goods are transported to the domestic companies. These domestic companies then attach their own brand name to these products and then sell these products in domestic markets with their own label.

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Â Under Eagle Co.'s job order costing system, manufacturing overhead is applied to Work-in-Process using a predetermined annual

Elina [12.6K]

Answer:

Cost of jobs completed in February=

Direct materials issued to production+

Direct labor costs+

Manufacturing overhead applied

=(96000+113000+119000)

=$328000(B).

5 0

3 years ago

A company reported beginning inventory of 100 units at a per unit cost of $25. It had the following purchase and sales transacti

patriot [66]

Answer:

14-Jan

Dr Trade Receivable $1,125

Cr Sales

14-jan

Dr Cost of sales 625

Cr Inventory 625

9-Apr

Dr Inventory 375

Cr Trade Payable 375

2-Sep

Dr Trade Receivable $2,500

Cr Sales $2,500

2 sep

Dr Cost of sales $1,375

Cr Inventory $1,375

Dec 31 No journal entry

Explanation:

Preparation to Records the month-end journal entries noted below, assuming the company uses a periodic inventory system

14-Jan

Dr Trade Receivable $1,125

Cr Sales (45*25)

14-jan

Dr Cost of sales[25*25] 625

Cr Inventory 625

9-Apr

Dr Inventory (25*$15) 375

Cr Trade Payable 375

2-Sep

Dr Trade Receivable $2,500

Cr Sales (50*50) $2,500

2 Sep

Dr Cost of sales $1,375

Cr Inventory $1,375

($2,500-$1,125)

Dec 31 No journal entry

8 0

2 years ago

Unit cost of materials for a department using the FIFO method of process costing is found by taking the total cost of materials

Brrunno [24]

Answer:

b. equivalent units of output.

Explanation:

In the production process there are various kind of inventory, that is raw material inventory, work in process and then the finished inventory.

Thus, there is this equivalent units concepts which calculates the completed units that would have been produced in case of no work in process.

Thus, when we use FIFO method and we want to calculate the unit cost of materials assuming inventory of raw material is also added in stages rather than completely adding it as a first step itself, the correct equation = Total cost of materials/equivalent units of output.

6 0

3 years ago

Consider the following information for Maynor Company, which uses a periodic inventory system:

katrin [286]

Answer:

A. FIFO - 78 units and $7,770 and Cost of Goods Sold $12,738

B. LIFO - Inventory Valuation $7,312 and Cost of Goods Sold $13,196

C. Weighted Average - inventory Valuation $7,304 and Cost of Goods Sold $13,204

Explanation:

Detailed calculation as under:

A. FIFO

First 73 Units are sold from the inventory on May 1. Therefore, we first take the beginning inventory units and then we take the next in line purchases made during the period. In this case the first 34 units are completely taken and then out of the 44 units only 39 units are taken.

Next 68 units are sold from the inventory on October 28. Now we will take the remainder 5 units bought on March 28 (which are not yet sold). Then we take 63 units out of the 68 units purchased on August 22.

The company's ending inventory on FIFO Basis is remaining 5 units bought on 22 August and 73 units bought on 14 October. There total value is (5 x 94) + (73 x 100) = $7,770

Cost of Goods Sold = Total Goods Cost available for sale - Inventory ending valuation

$12,738 = $20,508 - $7,770

B. LIFO

First 73 Units are sold from the inventory on May 1. Therefore, we first take the units purchased on 28 March and then we take the beginning inventory. In this case the first 44 units are completely taken and then out of the 34 units only 29 units are taken.

Next 68 units are sold from the inventory on October 28. Now we will take the units bought on 14 October i.e. 68 units out of the 73 units bought.

The company's ending inventory on LIFO Basis is remaining 5 units in the beginning inventory, remaining 5 units bought on 14 October and 68 units bought on 22 August. There total value is (5 x 84) + (5 x 100) + (68 x 94) = &7,312

Cost of Goods Sold = Total Goods Cost available for sale - Inventory ending valuation

$13,196 = $20,508 - $7,312

C. Weighted Average

In order to calculate Weighted average cost method we divide the total cost of inventory (Beginning and Purchased) with the total units, this yields average cost per unit. Then we multiple the average cost per unit with the units remaining after sales. As shown below:

$20,508 / 219 = $93.64 per unit

$93.64 x 78 units = $7,304

8 0

3 years ago

Control involves _____________, by definition.

anygoal [31]

D I think is correct answer.

6 0

3 years ago