Answer:
Sales return
Explanation:
Sales return when a customer is not satisfied with a product, refuses to accept the order and expects to receive back the whole amount of money he paid for it.
Tom's Textiles are at wrong here as they shipped the wrong material to a customer. The customer is allowed not to accept the order and all the money he paid must be reimbursed to him. The company should apologize for the mistake in a pleasant manner, as mistakes happen everyday and can be corrected quickly and efficiently.
Answer: $41,520
Explanation;
Equivalent units of production are used when some goods have not been fully processed but costs need to be attached to them. The incomplete ones will be converted to complete goods depending on how far along the production process they are.
Equivalent units for conversion costs = Transfers out during October + Ending WIP * Percentage completion
= 37,800 + (5,700 * 60%)
= $41,520
Answer:
$60 per unit
Explanation:
Total overheads:
= Overheads of fabrication department + Overheads of assembly department
= $90,500 + $109,700
= $200,200
Total labor hours:
= Blinks + Dinks
= (1,013 × 4) + (1,859 × 5)
= 4,052 + 9,295
= 13,347
Overhead rate per hour = Total overheads ÷ Total labor hours
= $200,200 ÷ 13,347
= $15 per hour
Total overhead cost for blinks:
= Total hours for blinks × rate per hour
= 4,052 × $15 per hour
= $60,780
Overhead cost per unit for Blinks:
= Total overhead cost for blinks ÷ Total units
= $60,780 ÷ 1,013
= $60 per unit
Creation and execution of goals by the management team, defined by available resources and existing conditions in and out of the company.
