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Mila [183]
3 years ago
5

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The

company based its predetermined overhead rate for the current year on the following data:
Total machine-hours 31,400
Total fixed manufacturing overhead cost $ 219,800
Variable manufacturing overhead per machine-hour $ 4
Recently, Job T687 was completed with the following characteristics:

Number of units in the job 10
Total machine-hours 20
Direct materials $ 580
Direct labor cost $ 1,160

The unit product cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)


a.$196.00

b.$98.00

c.$80.00

d.$174.00
Business
2 answers:
Pani-rosa [81]3 years ago
6 0

Answer:

Unit Cost = $196

Explanation:

As per the data given in the question,

Total variable overhead estimated = 4×31,400 = $125,600

Total overhead estimated = $125,600+$219,800 = $345,400

Predetermined overhead rate = $345,400÷31,400 = $11 per hour

Total overhead applied = $11×20 = $220

Hence, Total job cost = Direct material + Direct Labor + Total overhead

= $580 + $1,160 + $220

= $1,960

So, Unit cost = $1,960 ÷ 10 = $196

castortr0y [4]3 years ago
5 0

Answer:

Option (a) is the correct answer to this question.

Explanation:

Complete overhead vector estimated=(4 * 31400)=$125600

Total overhead estimated= Total overhead variable estimated Total overhead fixed estimated

=$125600+219800=$345400

Normal overhead rate=$345400/31400=$11 per system hour.

Complete overhead applied=(11 * 20)=$220

Hence total job cost=Direct material+Direct labor+Total overhead

=(580+1160+220)

=$1960.

The final answer is $196.00

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The best answer is D.

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Answer:

The cost of goods sold using the LIFO menthod is;

d. $3,580

Explanation:

Last in First Out (LIFO) method is an inventory method where the recently purchased good is sold first. This means that when accounting for the cost of goods sold, we use the unit cost of the goods that were purchased recently. In our case;

1 Beginning Inventory 150 units @ $10.00

5 Purchase 220 units @ $12.00

10 Sales 140 units @ $20.00

15 Purchase 100 units @ $13.00

24 Sales 150 units @ $21.00

<em>Step 1: Determine total number of units sold;</em>

Total number of units sold=number of sales on May 24+number of sales on May 10

where;

number of sales on May 24=150 units

number of sales on May 10=140 units

replacing;

Total number of units sold=(150+140)=290 units

Total number of units sold=290 units

<em>Step 2: Determine total cost of goods sold</em>

The first 100 units sold were each sold at $13

The remaining 190 units were each sold at $12

Total cost of goods sold=(100×13)+(190×12)=(1,300+2,280)

Total cost of goods sold=$3,580

5 0
3 years ago
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be
In-s [12.5K]

Answer: Machine B because it has the lower Present Value

Explanation:

<h2>Machine A</h2>

= Present Value of income - Present Value of Costs

Present value of Income;

Sold for $5,000 after 10 years.

= 5,000/ (1 + 8%)^10

= $2,315.97

Present Value of Costs;

Purchased for $48,000.

Maintenance of $1,000 per year for  years.

Present value of maintenance= 1,000 * Present value factor of annuity,  10 years, 8%

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= $6,710.10

Machine A Present Value

= 2,315.97 - 6,710.10 - 48,000

= ‭-$52,394

<h2>Machine B</h2>

No salvage value.

Present Value of costs

Purchased for $40,000.

Present value of maintenance = (4,000 / (1 + 8%)^3)  + (5,000 / ( 1 + 8)^6) + (6,000 / ( 1 + 8%)^8)

= -$9,567.79

Present Value = -40,000 - 9,567.79

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5 0
3 years ago
How is a savings account most useful?
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The fourth answer is correct (D).

The savings account is an investment that generates little income. To make long-term investments, there are other options that give a better return.

However, this type of account serves so that the money that will be used in the short term has at least some income. In other words, if the investor is sure that he does not need the liquidity of the money, he can apply in bonds, debentures, shares, etc. If the investor has money that needs to be kept liquid to be used soon, the best option is the savings account.

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<em>Use of return on equity:</em>

  • Isolates common equity returns
  • Can be used to evaluate dividends
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It is calculated by income available for stockholders divided by the total number of common stock and is expressed or represented in percentage. Income available for common stockholders can be arrived by reducing preference dividends from Net income.

That is, \text { Net income }-\text { Preference dividends }=\text { Equity available for common stockholder }

Hence, net income minus preferred dividends is the right answer.

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