Answer:
The use of a trial balance:
a) This error will not cause the two sides of the trial balance to disagree. A compensating error has occurred, because the Cash Account should have been credited and the Salaries and Wages Expense debited with $600.
b) This error will cause the two sides of the trial balance to disagree. The amount debited is not the same amount credited. The Accounts Receivable should have been credited with $900, not the Service Revenue.
Explanation:
a) The trial balance ensures that the total values of the debit and credit sides agree. It shows that accounts have been correctly debited and credited in the general ledger, with equal amounts.
b) Compensating errors arise when two accounting errors offset themselves, because the same mistake made on the debit side is made on the credit side
Answer:
<em>1</em><em>.</em> <em>Reduce</em><em> </em><em>buyer </em><em>order </em><em>processing</em><em> </em><em>cost</em>
<em>2</em><em>.</em><em> </em><em>Reduced </em><em>marketing</em><em> </em><em>cost</em><em>s</em>
<em>3</em><em>.</em><em> </em><em>Timely</em><em> </em><em>supplier</em><em> </em><em>information</em>
Country B because of the recent boom in inflation.
Answer: 26.37%
Explanation:
Given that,
Standard cost of CD players = $161 per unit
Labor = $34
Materials = $74
Overhead = $53
Sales price = $300 per unit
Current multi-factor productivity =
=
= 1.86
Revised multi-factor productivity after productivity increase by 14 % = 2.1204
Thus given sales price remaining constant at $ 300 and multi-factor productivity of 2.1204
Revised standard cost of CD players =
= $141.48
Let the corresponding material cost be $m,
Therefore,
Labor cost + m + overhead cost = $141.48
$34 + m + $53 = $141.48
m = $54.48
percentage reduction in material cost =
=
= 26.37%
MATERIAL COST MUST REDUCE BY 26.37%.
Answer:
125,200
Explanation:
Adjust inventory to base year prices:
= Cost of ending inventory ÷ cost index for the year
= $136400 ÷ 1.1
= $124,000
Current year LIFO layer:
= Adjust inventory to base year prices - Cost of beginning inventory
= $124,000 - $112,000
= $12,000
Inventory to be shown:
= Add the new LIFO layer at end of period prices to prior year LIFO inventory
= (112,000 × 1) + (12,000 × 1.1)
= 112,000 + 13,200
= 125,200