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Vitek1552 [10]
3 years ago
6

A partial listing of costs incurred during March at Febbo Corporation appears below: Factory supplies $ 9,000 Administrative wag

es and salaries $ 85,000 Direct materials $ 126,000 Sales staff salaries $ 30,000 Factory depreciation $ 33,000 Corporate headquarters building rent $ 43,000 Indirect labor $ 26,000 Marketing $ 65,000 Direct labor $ 99,000 "The total of the product costs listed above for March is": Multiple Choice $516,000 $68,000 $293,000 $223,000
Business
1 answer:
lana [24]3 years ago
6 0

Answer:

$293,000

Explanation:

The computation of the product cost is shown below:

= Direct material + direct labor + factory supplies + factory depreciation + indirect labor

= $126,000 + $99,000 + $9,000 + $33,000 + $26,000

= $293,000

The factory supplies + factory depreciation + indirect labor = manufacturing overhead

All other cost are not relevant for the computation part. Hence, ignored it

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5 0
3 years ago
Smiley Corporation sold equipment costing with of accumulated depreciation for cash. Which of the following journal entries shou
Pani-rosa [81]

The question is incomplete as the figures are missing. The complete question is,

Smiley Corporation sold equipment costing $72, 000 with $66, 000 of accumulated depreciation for $10, 000 cash. Which of the following journal entries should be prepared?

A. debit Cash for $10, 000, credit Equipment for $6000 and credit Gain on Sale of Equipment for $4000

B. debit Cash for $10, 000, debit Accumulated Depreciation - Equipment for $66, 000, credit Equipment for $72000 and credit Gain on Sale of Equipment for $4000

C. debit Cash for $10, 000 and credit Gain on Sale of Equipment for $10, 000

D. debit Accumulated Depreciation - Equipment for $66, 000 and credit Equipment for $66, 000

Answer:

Option B is the correct answer.

Explanation:

To calculate the gain or loss on disposal of the equipment, we first need to determine the book value of the equipment on the date of sale.

Net Book Value = Cost - Accumulated depreciation

Net Book value = 72000 - 66000   = $6000

The gain/(loss) on disposal = Sales Proceeds - Net Book value

The gain/(loss) on disposal = 10000 - 6000 = $4000 Gain

The entry to record this transaction will be,

Cash                                                              $10000 Dr

Accumulated depreciation - Equipment     $66000 Dr

          Equipment                                                   $72000 Cr

          Gain on sale-Equipment                             $4000 Cr

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D. 16,110

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