<span>The plantwide overhead rate method means </span>using overhead rate to allocate costs to products and includes <span>indirect costs (overhead cost) to cost allocation base (single plantwide overhead rate) to cost objects (products 1-3).
</span><span>The statement that the unit of product is the cost object when the plantwide overhead rate method is used is true. </span>
Answer:
C. $13,700
Explanation:
Given that;
Beginning retained earnings = $4,000
Net income during the period = $10,000
Dividends = $300
Computation of Ending balance in the retained earnings account
= Beginning retained earnings + Net income during the period - Dividends
= $4,000 + $10,000 - $300
= $13,700
Therefore, the ending balance in the retained earnings account is $13,700
Answer:
The Journal entries are as follows:
(i) On January 1, 2017
Plant Assets A/c Dr. $600,000
To cash $600,000
[To record the depot]
(ii) On January 1, 2017
Plant Assets A/c Dr. $41,879
To To Asset retirement obligation $41,879
[To record the Asset retirement obligation]
Missing information: Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2017, is $41,879.