Answer:
The answer is $10,800
Explanation:
Straight line method of depreciation is:
Cost - residual value/number of useful life
Cost - $62,000
Residual value - $8,000
Number of years - 5years
=62,000 - 8,000/5
=57,000/5
$10,800.
Therefore, $10,800 will be charged every year.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Activity cost pools:
Direct labor $ 10 per direct labor-hour
Machine processing $ 3 per machine-hour
Machine setups $ 45 per setup
Production orders $ 150 per order
Shipments $ 115 per shipment
Product sustaining $ 750 per product Activity
Total Expected Activity K425:
Number of units produced per year 200
Direct labor-hours 1,075
Machine-hours 2,400
Machine setups 13
Production orders 13
Shipments 26
Product sustaining 1
Total Expected Activity M67:
Number of units produced per year 2,000
Direct labor-hours 50
Machine-hours 40
Machine setups 1
Production orders 1
Shipments 1
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH K425= 1,075*10 + 3*2,400 + 45*13 + 150*13 + 115*26 + 750= $24,225
Allocate MOH M67= 10*50 + 3*40 + 45*1 + 150*1 + 115*1= $930
Answer:
C) Items in transit sold f.o.b. destination.
Explanation:
Ending inventory = all items in hand plus all purchases bought FOB shipping point plus all sales sold FOB destination.
FOB shipping point means that the title of the goods is transferred once the goods leave the seller's warehouse.
FOB destination point means that the title of the goods is transferred only after the goods arrive to the buyer's warehouse.
Answer:
<u>inocme statment:</u>
wages expense: understate
<u>net income</u> overstate
<u>blanace sheet</u>
wages payable: understate
Retained Earnings: overstate
Explanation:
If the adjusting entry is not made, then the expenses will be lower than it should.
Thereofre the net income will be overstate as there are more expenses but weren't recorded.
the balance sheet will not represent accurate the liabilities as there is wages payable which are not recorded.
also, in the blaance sheet the Retained Earnings account will be overstate as it include the net income which is overstate.
Answer:
Option (d) is correct.
Explanation:
Given that,
Inventory sold to Alberta, Inc. on account = $5,800
Cost of goods sold = $4,000
The journal entries are as follows:
(i) On October 1,
Accounts receivable A/c Dr. $5,800
To sales A/c $5,800
(To record the credit sale of inventory)
(ii) On October 1,
Cost of goods sold A/c Dr. $4,000
To Merchandise inventory A/c $4,000
(To record the cost of goods sold)
