Answer:
Periodicity assumption
Explanation:
Periodicity assumption is the one which is also called as the time period assumption, it is described as the accounting guideline which follows the accountants to divide or separate the complex, the ongoing activities of the business into the periods of the week, quarter, month and year.
Therefore, the assumption of the periodicity, assumes the life of the company to be divided or separated into the artificial time periods in order to provide the timely information to the external users.
Answer:
Dept. Y = $18,200
Dept. Z = $21,800
Explanation:
Wages expense for this question consist of direct wages and indirect wages. The direct wages are allocated to their respective departments while the indirect wages are apportioned between the two departments.
Therefore, first do the allocation then the remainder $24,000 is apportioned equally between the two departments, Dept. Y and Dept. Z.
Dept. Y Dept. Z
<u>Departmental wage expenses :</u>
Direct wages $6,200 $9,800
Indirect wages $12,000 $12,000
Total $18,200 $21,800
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Based on the predicted production of 24,000 units, a company anticipates $300,000 of fixed costs and $246,000 of variable costs. The company produces 20,000 units.
There is no reason or information to determine any change in fixed costs.
Fixed costs= 300,000
Variable costs= (246,000/24,000)*20,000= $205,000
Answer:
Depreciation Expense for 2018; $10,528.57
Explanation:
On January 2, 2016
machine cost = $100,000
Useful life = 10 years
Annual depreciation = ($100,000 - $6000)/10
= $9,400
By early 2018,
Carrying amount of the machine
= $100,000 - 2($9,400)
= $100,000 - $18,800
= $81,200
Useful life is reassessed to 7 years (rather than 8) with a salvage value of $7,500
Annual Depreciation = ($81,200 - $7,500)/7
= $73,700/7
= $10,528.57
Depreciation Expense for 2018; $10,528.57