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ella [17]
3 years ago
12

Corruption, Inc., uses process costing, they have overstated the percentage of work completed with respect to conversion cost on

the ending work-in-process inventory. What is the effect of this overstatement on (1) Conversion-cost equivalent units, (2) Conversion-cost cost per equivalent unit and (3) Actual physical units manufactured, respectively?
Business
1 answer:
forsale [732]3 years ago
5 0

Answer:

(1) understated

(2) understaded

(3) unchanged

Explanation:

The amount of equivalent units will be higher as the ending inventory of work in process will be above of what it should be.

As we have more equivalent untis the cost per equivalent unit will be lower:

\frac{cost}{equivalent \:units}

So both, conversion cost and total cost per equivalent untis will e lower than it should be as are getting divided over a larger amount.

the physical amount of units worked during the month and those which are complete will not be affected as the percentage of completion is an accounting tool to calculate the cost not to count the amount of units in possession

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The community of Desertville traditionally produces a large number of tires and a small amount of kiwi fruit. Kiwis are become i
viktelen [127]

Answer:

The answer is TRUE.

According to the law of increasing costs, the cost of producing kiwis will increase.

Explanation:

The law of increasing costs states that as more factors of production are shifted from making one product or service to a second product or service, the cost of producing the second item increases.

As we can see in the scenario given above, the community of Desertville initially produced a small amount of Kiwi fruit. But as kiwis became more popular, its cultivation had to be expanded, therefore, increased costs would be incurred in the process of this expansion.

8 0
3 years ago
Financial statement forecasts rely on additivity within financial statements and articulation across financial statements. Given
JulsSmile [24]

Answer: account receivable

Explanation:

The forecast in sales growth will most likely affect growth of the account receivable. Accounts receivable refers to the amount that's due to a business for the goods or services that were delivered to.a customer but.habent been paid for. It's s current asset.

The sale growth forecast will have an effect on the account receivable. An increase in sales growth will ultimately lead to an increase in the accounts receivable which implies that there will be more customers buying on credit.

6 0
3 years ago
Are scholarships included in gross income
GarryVolchara [31]

Answer:

Generally, you report any portion of a scholarship, a fellowship grant, or other grant that you must include in gross income as follows: If filing Form 1040 (PDF), include the taxable portion in the total amount reported on the "Wages, salaries, tips" line of your tax return

7 0
4 years ago
Marti received 11 NQOs (each option gives Marti the right to purchase 14 shares of stock for $10 per share) at the time Marti st
ch4aika [34]

Answer:

$924

Explanation:

Bargain element per share = Market price at exercise - Exercise price

Bargain element per share = $16 per share - $10 per share

Bargain element per share = $6 per share

Amount of bargain element = Bargain element per share * (Number of options * Number of shares per option)

Amount of bargain element = $6 per share * (11 options * 14 shares per option)

Amount of bargain element = $6 per share * 154 shares

Amount of bargain element = $924

So therefore, the amount of Marti's bargain element is $924

6 0
3 years ago
Solaris Autos Inc., a large automobile company, made an initial small investment in a start-up company that was developing a sol
Georgia [21]
...............................
8 0
3 years ago
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