A closed economy is one in which:

Guns R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income

lara [203]

Answer:

B. Cost of goods sold will be too low by $5,000.

Explanation:

Given that

Ending inventory overstated in the current year by $5,000

And, the net income is incorrectly reported $100,000

So, due to this error

The cost of goods sold is understated by $5,000

And, the net income is overstated by $5,000

Since the cost of goods sold is understated by $5,000 so it would be too low due to which the net income overstated by $5,000

4 0

3 years ago

Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale c

vova2212 [387]

Answer:

Gross profit earned by the company for each of the four costing methods = Subtraction of Total cost of goods sold from Total Sales

$48,322 - $30,651 = $17,671

Explanation:

Total sales = (330 x 87.4) + (200 x 97.4) = $48,322

Total cost of goods sold overweighted average method = $30,651

Subtract $48,322 from $30,651 to give $17,671 as the gross profit.

In the attached picture, Your will see average costs calculated and the inventory values for March 5, 9, 25, and 29.

4 0

3 years ago

Resource Room prints custom training material for corporations. The business was started January 1, 2017. The company uses a nor

nadya68 [22]

Answer:

Budgeted Overhead Cost 266,000

Budgeted Labor Cost 190,000

Recovery rate =266000/190000

Recovery rate per labor cost 1.40

Actual Material 158,000

Actual labor 175,000

WIP closing Material Labor

Job 11 4,720 5,700

Job 12 5,090 6,900

Total 9,810 12,600

Transfer to Finished= Total-WIP

Actual Material 148,190

Actual labor 162,400

Category Finished WIP Total

Material 148,190 9,810 158,000

Labor 162,400 12,600 175,000

Overhead-Recovered 227,360 17,640 245,000

@ 140% of labor

Balance before 537,950 40,050 578,000

adjustment to overhead

under-allocation

Option 1-Underallocated 2,200 2,200

overhead (247200-245000)

Balance after adjusting 540,150 40,050 580,200

overhead under-allocation

Option 2-Underallocated 2,042 158 2,200

overhead in overhead allocated rate

2200*227360/245000

2200*17640/245000

Balance before adjustment 537,950 40,050 578,000

to overhead under-allocation

Balance after adjusting 539,992 40,208 580,200

overhead under-allocation

g. the option 2 will be chosen because a careful look at the underallocated overhead is similar to 2017 so the charge should be levied on all activity

Explanation:

Budgeted Overhead Cost 266,000

Budgeted Labor Cost 190,000

Recovery rate =266000/190000

Recovery rate per labor cost 1.40

Actual Material 158,000

Actual labor 175,000

WIP closing Material Labor

Job 11 4,720 5,700

Job 12 5,090 6,900

Total 9,810 12,600

Transfer to Finished= Total-WIP

Actual Material 148,190

Actual labor 162,400

Category Finished WIP Total

Material 148,190 9,810 158,000

Labor 162,400 12,600 175,000

Overhead-Recovered 227,360 17,640 245,000

@ 140% of labor

Balance before 537,950 40,050 578,000

adjustment to overhead

under-allocation

Option 1-Underallocated 2,200 2,200

overhead (247200-245000)

Balance after adjusting 540,150 40,050 580,200

overhead under-allocation

Option 2-Underallocated 2,042 158 2,200

overhead in overhead allocated rate

2200*227360/245000

2200*17640/245000

Balance before adjustment 537,950 40,050 578,000

to overhead under-allocation

Balance after adjusting 539,992 40,208 580,200

overhead under-allocation

g. the option 2 will be chosen because a careful look at the underallocated overhead is similar to 2017 so the charge should be levied on all activity

3 0

4 years ago

What are tariffs? What are some of the harmful effects of tariffs?

vodka [1.7K]

A tariff is a tax on exported goods, if a tariff is too high then it will increase the cost of the item so the people who are buying have to pay more.

5 0

4 years ago

Read 2 more answers

Why do you think pmi created a separate knowledge area for stakeholder management?

DaniilM [7]

PMI stands for the project management institute and organization which in non-profit for the project management in the United States.
And i think Project management institute created separate knowledge area for stakeholder management to keep the information of stakeholder control within the task or project.

3 0

3 years ago