Answer:
a. 0.05
b. $68,750
a. $1,150,000
b. 0.1
c. $115,000
Explanation:
Depreciation expense using the double declining method = Depreciation rate x cost of the asset
Depreciation rate = 2 x (1/useful life) = 2 / 40 = 0.05
The double-declining-balance depreciation for the first year = 0.05 x $1,375,000 = $68,750
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
The depreciable cost = Cost of asset - Salvage value = $1,450,000 - $300,000 = $1,150,000
The straight line rate = 1 / useful life = 1 / 10 = 0.1
The annual straight-line depreciation = $1,150,000 x 0.1 = $115,000
The correct question should be:
Producers often work to maximize their profit and make them as large as possible. True or False
Answer: True
Explanation:
The aim of every business is to make profit. A producer is into the business of taking raw materials and processing them into finished or semi-finished goods and selling them to make profit.
Answer:
d. 6,700 units
Explanation:
The computation of the equivalent units for conversion cost by using the FIFO method is shown below:
= Beginning inventory units × remaining percentage + units started and completed + ending inventory units × completion percentage
= 5,000 × 10% + (10,000 - 5,000) + 2,000 × 60%
= 500 + 5,000 + 1,200
= 6,700 units
We simply applied the above formula
Answer:
a) Manufacturing overhead applied to Work in Process for the month was $70,000
Explanation:
Data provided in the question
The total of the Manufacturing Overhead account = $58,000 i.e incurred
And, the total of credit to the account = $70,000 i.e applied amount
So according to the given data, the manufacturing overhead should be applied to the work in process with the total credit amount i.e $70,000
Hence, the first option is correct