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jek_recluse [69]
3 years ago
15

Which of the following statements is true of labor cost flows associated with a job-order costing? a.They reflect only indirect

labor cost. b.They reflect both indirect labor and administrative overhead costs. c.They reflect both direct and indirect labor costs. d.They reflect only direct labor cost.
Business
1 answer:
alexira [117]3 years ago
7 0

Answer:

d.They reflect only direct labor cost.

Explanation:

Job order costing is an accounting method that assigns cost and revenue to each job that is performed in the production process.

Reporting shows profit that is realised per job. Job numbers are assigned to individual items of expense and revenue.

Examples of companies that use job order costing include food factories, clothing factories, accounting firms, law firms, hospitals, and aircraft manufacturers.

Job order costing therefore reflects only the direct labour that is inputted into the job.

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The selection of the factory overhead allocation method is important because the method selected determines the accuracy of the
rusak2 [61]
If this is a true or false question, then yes, it is <u>true</u> that the selection of the factory overhead allocation method is important because the method selected determines the accuracy of the product cost.It is important to determine the appropriate method to allocate overhead in a certain factory so as to ensure that the cost of a product is suitable and accurate.
6 0
3 years ago
During 2021, Blossom Company purchased the net assets of Ayayai Corporation for $2178000. On the date of the transaction, Ayayai
Evgesh-ka [11]

Answer:

When the purchase price is lower than the fair market value, accountants generally refer to this as negative goodwill. All negative goodwill must be reported as a gain.

the net fair market value of assets = $1,069,200 + $2,494,800 - $594,000 = $2,970,000

gain = fair market value - purchase price = $2,970,000 - $2,178,000 = $792,000

Another way to refer to this type of situation is a bargain purchase.

6 0
3 years ago
IBM creates and sells additional stock to the investment banker Morgan Stanley. Morgan Stanley then resells the issue to the U.S
ivanzaharov [21]

Answer: Asset Transformer

Explanation: The above is an example of asset transformation by Morgan Stanley. The transaction itself is an example of a primary market transaction.

An asset transformers (Morgan Stanley in this case) are involved in the conversion of risky assets (IBM stocks, in this case) into safer assets by creating and selling assets with risk characteristics that investors are more comfortable with (E.g. Mutual funds). The funds acquired by selling these assets are used to purchase other assets that may have for more risk and possibility for higher returns.

5 0
3 years ago
At a lump-sum cost of $72000, Sunland Company recently purchased the following items for resale: Item No. of Items Purchased Res
Gnom [1K]

Answer:

M = $3.20

N = $9.95

O = $5.21

I believe it is the second option.

Explanation:

Item              No. of Items Purchased              Resale Price Per Unit

M                             4,600                                         $4.05

N                             2,300                                        $12.60

O                             6,600                                         $6.60

total resale price:

  • M = 4,600 x $4.05 = $18,630
  • N = 2,300 x $12.60 = $28,980
  • O = 6,600 x $6.60 = $43,560
  • total = $91,170

markup % = ($91,170 - $72,000) / $72,000 = 26.625%

purchase cost per unit:

  • M = $4.05 / ( 1 + 26.625%) = $3.20
  • N = $12.60 / ( 1 + 26.625%) = $9.95
  • O = $6.60 / ( 1 + 26.625%) = $5.21

7 0
3 years ago
Unearned revenue is reported on the balance sheet as a liability and represents amounts paid to an entity in exchange for future
BartSMP [9]

Answer:

True

Explanation:

Unearned revenue is cash received from a customer before goods are delivered or services offered. It is an amount received for work that is not yet done. Unearned revenue is a liability to the business. It may also be called deferred revenue.

As per the accruals principle, revenue is recognized when the time when an economic activity that generates income has happened. A sale of either a service or good has to happen, or the business has to incur an expense. A payment whose work is yet to be done is not recognized as revenue. The journal entry is to debit to the cash account and credit the unearned revenue account.

6 0
3 years ago
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