To adjust for rent used up during the year that was recorded to the prepaid rent account when paid for;
- Rent expense is debited, prepaid rent is credited
<h3>Prepaid rent account</h3>
A prepaid rent account simply a current asset account that's responsible for reporting the amount of future rent expense that was paid in advance of the rental period.
On this note, the amount reported on the balance sheet is the amount that has not yet been used or expired as of the balance sheet date.
Read more on prepaid rent account;
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Answer:
Instructions are below.
Explanation:
Giving the following information:
Job 765:
Direct material= $5,670
Direct labor= $3,500
Machine Hours= 27
Job 766:
Direct material= $8,900
Direct labor= $4,775
Machine Hours= 44
Job 765 produced 152 units, and Job 766 consisted of 250 units.
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour.
Costs sheet:
<u>Job 765:</u>
Direct material= 5,670
Direct labor= 3,500
Allocated overhead= 200*27= 5,400
Total cost= 14,570
Unitary cost= 14,570/152= $95.85
<u>Job 766:</u>
Direct material= 8,900
Direct labor= 4,775
Allocated overhead= 200*44= 8,800
Total cost= 22,475
Unitary cost= 22,475/250= $89.9
Answer:
Units sold exceeds units produced
Explanation:
The net operating income under variable costing system is always higher than absorption costing system when units sold exceeds units produced. As variable cost doesn't include fixed manufacturing overhead unlike absorption costing, when the net operating income under it now exceed that of absorption, it's definitely am increase in sales that's responsible for that.
What are the sequence of traditional law of production
Answer:
e) $93,097
Explanation:
Interest for 1st year = $100,000*8%
Interest for 1st year =$8,000
Principal repayment for 1st year = $14,903 - $8,000
Principal repayment for 1st year = $6,903
Principal balance on January 1,Year 2 = $100,000 - $6,903
Principal balance on January 1,Year 2 = $93,097
