Answer:
A Journal was prepared for the receivable bad debt of a customer that owned stone bridge Electronics which us shown below
Explanation:
Solution
The first step to take in this case is to Nationalize the transaction to be recorded for the month of July 15, 2016.
A JOURNAL ENTRY FOR RECEIVABLE BAD DEBT OF $325
Particulars Debit Credit
July 15, 2016 Cash Account $325
To Bad Debt Expense $325
Note: The cash and bad debt expense are both recorded on credit and debit side of the Journal
Answer:
Xia Co.
1-a. The relevant costs for Xia Co. to make or buy the part:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
1-b. Xia should make the part. It will cost Xia $4.00 to make the component while it costs it $5.00 to buy. It should therefore, make the component.
Explanation:
a) Data and Calculations:
Price of buying component = $5
Cost of making component:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
b) The relevant cost for making the component is $4.00. The overhead cost based on 200% direct labor is not a relevant cost. It is an allocated fixed cost and must be incurred whatever decision is taken. By making the component, Xia Co. will be netting in a unit contribution of $1 ($5.00 - $4.00) with the alternative of buying.
Answer:
$2,000
Explanation:
Depreciation: The depreciation is a non-cash expense that shows a decrements in the value of the fixed assets due to tear and wear, obsolesce, usage, time period, etc. It is shown on the debit side of the income statement.
The computation of the depreciation expense under the straight line method is shown below:
= (Original cost of milling machine - salvage value) ÷ (expected useful life)
= ($15,000 - $2,000) ÷ (7 years)
= ($14,000) ÷ (7 years)
= $2,000
In this method, the depreciation is same for all the remaining useful life
Answer:
the total period cost for the month under variable costing is $46,700
Explanation:
Product Cost Under Variable Costing = Direct Materials + Direct Labor + Variable Overheads
Period Cost Under Variable Costing = Fixed Manufacturing Overheads + All Non-Manufacturing Overheads (Variable and Fixed)
<u>Calculation for the total period cost - Varible Costing</u>
Variable selling and administrative expense ( $ 7× 1,070 Units) $ 7,490
Fixed manufacturing overhead $ 13,530
Fixed selling and administrative expense $ 25,680
Total period cost for the month $46,700
When we say centrally planned economy, this means that the economy is being controlled and managed by the government rather than the individual businesses between the owners and the consumers. There was a time that the Russian economy found it difficult to adjust and the way how they adjusted is by modifying the economy. The modification included free market practices which enabled individual owners to gradually balanced their businesses.
