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KengaRu [80]
3 years ago
7

1. Classify the following manufacturing costs of Business Solutions as (a) variable or fixed and (b) direct or indirect. 2. Prep

are a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2020. Assume the following manufacturing costs: Direct materials: $2,200 Factory overhead: $490 Direct labor: $900 Beginning work in process: none (December 31, 2019) Ending work in process: $540 (January 31, 2020) Beginning finished goods inventory: none (December 31, 2019) Ending finished goods inventory: $350 (January 31, 2020) 3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2020.
Business
1 answer:
Scilla [17]3 years ago
7 0

Answer:

Csot of goods sold= $2700

Explanation:

A)

Variable:

Direct materials: $2,200

Factory overhead: $490

Direct labor: $900

Fixed:

Nono

Direct:

Direct materials: $2,200

Direct labor: $900

Indirect:

Factory overhead: $490

B)

The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.

COGS=Beginning Inventory+Production during period−Ending Inventory

We need to calculate the production during the period.

Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress

Cost of manufactured period=0+2200+900+490-540= $3050

COGS=Beginning Inventory+Production during period−Ending Inventory= 0 + 3050 - 350 = $2700

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Answer: Fixed Indirect costs.

Explanation:

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an indirect cost is one that is not directly associated with an activity.

The determination of depreciation as a direct or indirect cost depends upon what it is associated with. For example carpet cleaning is an Indirect costs because it's precise benefits to a specific project is difficult or impossible to trace Also,since depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset then cost of the depreciation on the carpet cleaning is a Fixed Indirect Cost.

8 0
3 years ago
Jordan is a manager at a technology firm. When the top management makes decisions, Jordan explains it to his subordinates and gi
ioda

Answer:

In the context of the different leader styles, Jordan uses the participating style

Explanation:

Participative leadership also known as Democratic Leadership Style is a method of leadership that involves all team members in terms of identifying important goals as well as developing strategies and procedures to achieve the goals.

7 0
3 years ago
III
klio [65]

Answer:

<h2>W Smith, a sole trader</h2>

Identification and Explanation of Highlighted Accounting Concepts and Treatment in the Final Accounts:

1. Economic Entity: The business (economic entity) is separate from the individual (W. Smith).  Accounts are kept to ensure this separation of ownership from the business.  This withdrawal is treated as Drawings, a reduction of capital (owner's equity) in the balance Sheet.

2. Consistency concept:  This concept requires that an accounting estimate or principle is consistently applied.  However, if there is a change in an accounting estimate, the effect of the change needs to be disclosed in the final accounts.

3. Going concern concept:  A business is assumed to continue indefinitely in life.  Therefore, assets and liabilities are stated at their cost or fair values.  Where there is a contrary view, this must be disclosed and accounts be kept to reflect the revised view.  Then, assets and liabilities will reflect market or disposal values.

4. Materiality concept:  This concept requires that values in accounts be material.  Though, materiality is a matter of judgement, a threshold can be established based on the value of the individual item to the value of the business.  Will its disclosure or not affect decisions of a knowledgeable investor or analyst, is a consideration under the materiality concept.  The office stationery can be expensed in the income statement if the amount involved is not material, even though, they will continue to be used in the business for more than a year.  This somehow contradicts the concept of the matching principle.

5. Accrual Concept:  The concept states that "Revenue is recognized when earned, and expenses are recognized when assets are consumed," and not when cash is received or paid.  This unpaid electricity bill for £900 must be accrued in the income statement as an expense and treated as a liability in the balance sheet in line with the accrual concept.

Explanation:

These are the basic accounting concepts:

1. Accruals concept

2. Conservatism concept

3. Consistency concept

4. Economic entity concept

5. Going concern concept

6. Matching concept

7. Materiality concept

7 0
3 years ago
What are four causes of loss in job satisfaction
Andru [333]
Not listening to people
not paying attention
being late
no doing as instructed
8 0
3 years ago
Read 2 more answers
Cindy's Car Wash has average variable costs of $2 and average total costs of $3 when it produces 100 units of output (car washes
suter [353]

Answer:

$200

Explanation:

Total variable cost = average variable cost × quantity

$2 × 100 = $200

Variable cost is cost that varies with production.

If production increases, variable cost increases and if production reduces, variable cost falls. E.g. cost of Labour

Fixed cost is cost thay does not vary with production e.g. rent

I hope my answer helps you

3 0
3 years ago
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