Materials that become independent components of the finished product and whose cost can be easily and conveniently traced to the finished products are <u>direct materials.</u>
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<h3>What are direct materials?</h3>
Those components pass into a manufactured product are called as Direct materials. Direct materials cost refers to the cost of direct materials which may be without problems recognized with the unit of production.
For example, the value of glass is an immediate substance cost in light bulb manufacturing.
Hence, Materials that become independent components of the finished product and whose cost can be easily and conveniently traced to the finished products are <u>direct materials.</u>
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Answer:
The correct answer is option B.
Explanation:
Profit maximization refers to the situation when a firm is able to maximize the total profit that it could earn through the production of goods and services.
The total profit is maximized when the marginal profit is zero or when the marginal revenue is equal to marginal cost. The marginal profit is the difference between marginal revenue and marginal cost.
If the marginal revenue is greater than the marginal cost the firm should increase production till both are equal.
In case, marginal revenue is less than the marginal cost the firm should stop producing more and reduce production till both are equal.
Answer:
WIP inventory 904.91 debit
Finished goods 67.868,16 debit
COGS 35.239,43 debit
Factory overhead 104,012.5 credit
Explanation:
overhead rate_
642,500 / 514,000 = 1.25
labor cost
190,124 x 1.25 = 237.655 weight 33.88%
360,580 x 1.25 = 450.725 weight 65.25%
10,486 x 1.25 =<u> 13.107,5 </u> weights 0.87%
total overhead 701.487,5
actual overhead 805,500
over-allocated: 104.012,5
we debit all this concepts as they were understated and credit the applied overheas as it was under allocated.
Answer:
False
Explanation:
Illiquidity in the context of a business refers to a company that does not have the cash flows necessary to make its required debt payments, although it does not mean the company is without assets.