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dangina [55]
3 years ago
5

Direct materials $ 74,000 Direct labor $ 37,500 Variable manufacturing overhead $ 17,000 Fixed manufacturing overhead 29,500 Tot

al manufacturing overhead $ 46,500 Variable selling expense $ 13,000 Fixed selling expense 20,000 Total selling expense $ 33,000 Variable administrative expense $ 4,500 Fixed administrative expense 26,000 Total administrative expense $ 30,500 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost? b. What is the total period cost?
Business
1 answer:
Vedmedyk [2.9K]3 years ago
4 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Direct materials $ 74,000

Direct labor $ 37,500

Variable manufacturing overhead $ 17,000

Fixed manufacturing overhead 29,500

Total manufacturing overhead $ 46,500

Variable selling expense $ 13,000

Fixed selling expense 20,000

Total selling expense $ 33,000

Variable administrative expense $ 4,500

Fixed administrative expense 26,000

Total administrative expense $ 30,500

- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

- Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have production costs that include: Direct labor, Raw materials, Manufacturing supplies, Overhead that's directly tied to the production facility such as electricity.

Period costs= total selling expense + total administrative expense

Period costs= 33000 + 30500= $63,500

Product costs= direct materials + direct labor + MOH

Product costs= 74,000 + 37,500 + 46,500= $158,000

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The following information is taken from Reagan Company's December 31 balance sheet:
zimovet [89]

Answer:

Firm’s sales uncollected for year is 42 days.

Explanation:

Account receivable turnover ratio = $621,000 / $70,422

Account receivable turnover ratio = 8.69

Thus, accounts receivable turnover ratio is 8.69

Average collection period = 365 / Account receivable turnover ratio

Average collection period = 365 days / 8.69

Average collection period = 42.00

Thus, firm’s sales uncollected for year is 42 days.

8 0
3 years ago
Fredrick purchased a property worth $150,000 on mortgage. He paid $30,000 as a down payment on this property. However, a recent
Eva8 [605]

Answer:

Real estate short sale

Explanation:

Real estate is defined as a piece of land and any attached property that is constructed on it.

In real estate business a real estate short sale occurs when the person that owns a property decides to sell the property at a price that is less than the amount on the mortgage.

This usually occurs as a result of financial distress of the owner.

In the given scenario the property has a mortgage value of $150,000 and down payment of $30,000 has been made.

The mortgage amount is now $150,000 - $30,000 = $120,000

However they now sell the property for $115,000 which is less than the remaining mortgage value of $120,000.

This is and example of real estate short sale.

5 0
3 years ago
When preparing a consolidated balance sheet, the noncontrolling interest amount is:
Margarita [4]

Answer:C - Generally presented as a part of stockholders' equity

Explanation: The non controlling interest amount is generally presented in the consolidated financial statement as part of stakeholders equity. The non controlling interest is also known as the minority interest. The non controlling interest arises where the parent company has less than 100% ownership in the business.

5 0
3 years ago
Presented below are the basic assumptions and principles underlying financial statements. a. Historical cost principle d. Going
dimulka [17.4K]

Answer:

1. Periodicity assumption.

2. Going concern assumption.

3. Historical cost principle.

4. Economic entity assumption.

5. Full disclosure principle.

6. Monetary unit assumption.

Explanation:

1. <u><em>Periodicity assumption</em></u>: The economic life of a business can be divided into artificial time periods. It is also known as the Time period assumption.

2. <em><u>Going concern assumption</u></em>: The business will continue in operation long enough to carry out its existing objectives.

3. <em><u>Historical cost principle</u></em>: Assets should be recorded at their acquisition cost.

4. <em><u>Economic entity assumption</u></em>: Economic events can be identified with a particular unit of accountability.

5. <em><u>Full disclosure principle</u></em>: Circumstances and events that could make a difference to financial statement users should be disclosed.

6. <em><u>Monetary unit assumption</u></em>: Only transaction data that can be expressed in terms of money should be included in the accounting records.

5 0
3 years ago
A variety of different savings products are offered by financial institutions. Two of the most frequently sold savings investmen
nadya68 [22]

Answer:

Statement Savings Account is said to be a deposit account held by a bank where a customer can earn interest .

In Statement Savings Account, the interest will be relatively low and there may be a possibility of restricted number of withdrawals.

In Statement Savings Account, the interest rate gained can either increase or decline overtime while putting into consideration the interests rate set by the federal reserve.

In Statement Savings Account,  a good number of this said savings investment offers debit cards which allows a customer to withdraw money via an ATM Machine or through electronic transfer.

In Statement Savings Account, there may be restrictions as regards the minimum account balance.

while

  • In Certificates of Deposit, there is a strict requirement of meeting a minimum account and not being able to execute withdrawals from the said account for a given duration.
  • In Certificates of Deposit, there is a significantly higher interest rate that that of a savings account.
  • In Certificates of Deposit, a penalty is put in place for initiating withdrawals prior maturity.
  • In Certificates of Deposit, one is allowed to carry out withdrawals or roll the funds into a another certificate of deposit once the certificate of deposit term is completed.
3 0
3 years ago
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