Answer:
3,000 units and 1,950 units
Explanation:
For computing the equivalent units of ending work in process for materials and conversion cost, first we have to determine the ending work in process units which is shown below:
Ending work in process units = Beginning inventory + units started - units completed and transferred
= 2,500 units + 18,000 units - 17,500 units
= 3,000 units
Now the equivalent units of ending work in process for materials would be
= 3,000 units × 100%
= 3,000 units
And, for conversion cost it would be
= 3,000 units × 65%
= 1,950 units
C. Some sources say the flu vaccine could lessen negative affects on the economy.
- Apex
Answer:
1. Overhead incurred during the year;
= Depreciation on manufacturing plant and equipment + Property taxes on plant + Plant Janitors wages
= 485,000 + 19,000 + 9,500
= $513,500
2. The under or over allocation depends on how much manufacturing overhead was allocated to jobs for the year.
= Actual machine hours * Overhead rate
Overhead rate = Manufacturing overhead cost / Allocated Machine hours
= 570,000 / 71,250
= $8
Allocated Manufacturing Overhead = 57,000 * 8
= $456,000
The allocated manufacturing overhead is more than the actual overhead. This means that it is Underallocated and the company did not budget enough for the overheads.
Underallocation = 513,500 - 456,000
= $57,500
Answer:
The correct answer is letter "D": net income for the year will be overstated.
Explanation:
Net Income is an important measure of how profitable the company is over a period of time. Net income is calculated by taking the total revenue and subtracting the business expenses which results in the earnings before tax. After taxes are deducted, the amount obtained will be the firm's net income.
Prepaid insurances are considered expenses of a company. Thus, <em>if the payment of the prepaid insurance was not recorded, the net income of the firm will be overstated.</em>
The freeing up of trade barriers in the Caribbean is being accompanied by foreign exchange liberalisation giving local exporters access to funds they need to bring in foreign goods.
