Answer:
The value of materials transferred out is $224,000
Explanation:
The condition for the units for transferred is that they must have been completed 100% with respect to equivalent unit cost,hence the materials transferred out should be valued at full $8.00 per direct material.
The value of materials transferred out=28,000*$8.00
=$224,000
The value of WIP=$8.00*85%*14,400
=$97,920
The closing WIP of $97920 would be the beginning inventory in production next period an would ultimately form part of materials completed and transferred next period.
Answer:
The answer is: B) Neither Jeff nor Robert has any recognized gain or loss.
Explanation:
Both Jeff and Robert are contributing different assets to form KS Ventures Corporation. Jeff will transfer property at its fair market value ($90,000) and Robert will also transfer property at fair market value ($70,000) plus $20,000 in cash to equal Jeff's contribution. They haven't gained or lost anything, each still has 50% of stock ($90,000) of KS Ventures Corporation.
'Actual Tigers Company'
Total Assets
$100,000
Stockholder Equity: $30,000
$100,000 - $30,000 = $70,000
$70,000 + $30,000 = $100,000
Total Assets - Equity = $70,000 (total liabilities)
$70,000 + Equity = $100,000 (total assets)
In accounting if we minus the total assets ($100,000) with equity ($30,000) it will always give the "total liabilities" which is (70,000)
Then, adding the "total liabilities" ($70,000) with the equity ($30,000) equals $100,000 equal like as the "total assets"of $100,000
The total assets MUST match the total liabilities. If they don't match then either the calculation of the total assets are inaccurate or the numbers are estimated wrong to recalculate.
The answer would be D: debit to an asset. Hoped this helped:)
