Answer:
the actual total direct labor cost for the current period is $425,285
Explanation:
<u>Reconciling Standard Cost to Actual Cost</u>
Standard Cost $419,000
<em>Add</em> Unfavorable direct labor rate variance $10,475
<em>Less</em> Favorable direct labor efficiency variance ($4,190)
Actual Cost $425,285
Dividends that were paid last year = $200
Retained earnings = $522
Net Income = Retained earnings + Dividends paid = 200+522 =722
Tax rate was 38%.
Earnings before tax (EBT) = Net income/ (1-tax rate) =722/(1-0.38) = 1,164.52
Interest expense= 624
Earnings before interest and tax (EBIT) = EBT + interest expense = 1,164.52 + 624 = 1,788.52
Earnings before interest and tax (EBIT) = 1,788.52
Answer:
No adjusting entry required
Explanation:
When the contract was formed and advance was received the company must had recorded the following entry:
Dr Cash Account $5000
Cr Unearned Revenue $5000
Now it is the year end and till now the goods are not delivered which means advance that was received is still our unearned revenue So no further entry is required until the delivery of the goods ordered to the customer.
Correct entry is "No adjusting entry required"
