On September 1, 2020, Flounder Corporation acquired Shamrock Enterprises for a cash payment of $690,000. At the time of purchase
1 answer:
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Answer:
B
Materials Control $ 250
Manufacturing Overhead Control $1,000
Work-in-Process Control $1,250
Explanation:
spoilage rate: 10/1000 = 0.01=1%
the job requires 2,500 goods parts
total part required (considering spoilage)
2,500 /(1-0.01) = 2500/ 0.99 = 2525.2525 = 2525
2525-2500 = 25 spoilage part
<u>Note:</u>
in this case you may think you can simple do 2,500 x 0.01
But if the spoilage rate is high or the amount of high is, then you will have an answer different than the correct method. Stick to the formula given.
25 part x 50 = 1,250
From the work in process, we will subtract this value, we will increase the spoilage materials inventory and charge the diference as actual overhead.
b.
Materials Control $ 250
Manufacturing Overhead Control $1,000
Work-in-Process Control $1,250
Answer:
$0.25
Explanation:
The marginal cost of the sixth pencil is given by the difference in total cost of purchasing 6 pencils from the cost of purchasing 5 pencils. That is, the change in cost caused by the addition of the sixth unit of output:
The marginal cost of the sixth pencil is $0.25