Answer:
b. debit to Work in Process of $68,000
Explanation:
The journal entry is as follows:
Work in process A/c Dr $68,000
Factory overhead A/c Dr $6,000
To Raw material A/c $74,000
(Being the requisition from the storeroom is recorded)
Since it is already given that raw material i.e $74,000 requisitioned from the storeroom and the indirect material totaled is $6,000 so the remaining balance transferred to the work in process account i.e $68,000
Answer:
Option (C) is correct.
Explanation:
Exchange rate refers to the rate at which various countries exchange goods and services in the world market.
For example, the exchange rate between India and United States is as follows:
India's currency is in Rupees and United states' currency is in dollars,
So, the exchange is; $1 = Rs. 69
If the cost of goods for an Indian resident is 20 US dollars then he have to pay:
= 20 × Rs. 69
= Rs. 1,380 in rupees for purchasing the product.
Answer:
Mark−up percentage = 18.75%
Explanation:
Total manufacturing cost= Direct material + Direct labor + Variable overhead + Fixed overhead
= $36 + $24 + $18 + $40
= $118
Hence, the total manufacturing cost is $118.
Total selling cost = Fixed selling cost + Variable selling cost
Total selling cost = $28 + $14
Total selling cost = $42
Hence, the total selling cost is $42
Total cost = Total Manufacturing cost + Total selling cost
Total cost = $118 + $42
Total cost = $160
Mark−up percentage = ROI / Total cost * 100
Mark−up percentage = $30 / $160 * 100
Mark−up percentage = 0.1875 * 100
Mark−up percentage = 18.75%
Answer:
The product 2005WSC should be reported at $26 per unit.
Explanation:
The lower-of-cost-or-market (LCM) method is a method of recording the inventory of a company which requires that the inventory cost of the company must recorded at whichever is lower between the inventory's original cost or current market price.
Applying lower-of-cost-or-market, the amount per unit at whcih product 2005WSC should be reported can be determined as follows:
Net realizable value (NRV) = Selling price per unit - Cost of disposal per unit = $30 - $3 = $27
Replacement cost (RC) = $26
NRV - Profit Margin = $27 - ($30 * 40%) = $15
Cost per unit = $27
Note that the market is the middle value of Net realizable value (NRV), $27; Replacement cost (RC), $26; and "NRV - Profit Margin", $15. Since the Replacement cost (RC) of $26 is the middle value, that the market value.
Since the market value of $26 per unit is lower than Cost per unit of $27, by applying lower-of-cost-or-market, the product 2005WSC should be reported at $26 per unit.
