Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Explanation:
You are able to deduct expenses that are directly related to the business travel.
He can deduct the entire 175 for driving, since he would need to do that no matter if he stayed longer or not. Staying longer doesn't add any extra cost.
He can deduct lodging that covers the amount of time dedicated to business so of the 600 he can deduct 1/4 or $150 since only 1 of the 4 days was business related.
And the $50 for food for the day he spent on business
Answer:
Make since the relevant cost to make it is $62.20.
Explanation:
There is an option below the question ask for details
The computation of the total product cost is shown below:
= Direct material per unit + Direct labor per unit + Overhead cost per unit
where,
Overhead cost per unit would be
= Overhead cost per unit × remaining percentage
= $44 × 65%
= $28.6
All the other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= $8.80 + $24.80 + $28.6
= $62.20
Since the given total product cost is more than the computed one so the company will choose make option and for decision making we take only 65% which is relevant
Answer: The adjusting entry would be: Debit Bad debt expense $24,380; Credit Allowance for doubtful accounts $24,380.
Explanation: Since aging of the accounts receivable shows that 7% approximately of the outstanding receivable of $374,000 will be uncollectible. It then means $26,180 (7%*$374,000) will be uncollectible. Meanwhile, Tanning Company already has a credit balance of $1,800 in the allowance for doubtful accounts, therefore, an adjustment of $24,380 ($$2,180 - $1,800) has to be made.
