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skelet666 [1.2K]
3 years ago
13

Q 4.26: on december 31, 2017, before any year-end adjustments, canterbury shoe repair's prepaid insurance account had a balance

of $3,500. It was determined that $2,200 of the prepaid insurance had expired. The adjusted balance for prepaid insurance at december 31, 2017, will be
Business
1 answer:
melamori03 [73]3 years ago
3 0

<u>Calculation of adjusted balance for prepaid insurance at December 31, 2017:</u>


It is given that on December 31, 2017, before any year-end adjustments, Canterbury shoe repair's prepaid insurance account had a balance of $3,500. It was determined that $2,200 of the prepaid insurance had expired.

So the adjusted balance for prepaid insurance at December 31, 2017, shall be (3500-2200) = <u>$1,300</u>




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Cost allocation is a technique of allocating the organization's costs among the various cost centers of the organization. Thus, the office costs allocated to the Bottling department are equal to $128,000.

<h3>What are allocation costs?</h3>

Cost allocation is a technique of supplying relief to shared carrier organization's cost facilities that offer a product or provider. In turn, the related cost is assigned to internal clients' price centers that devour the goods and services.

As per the given information,

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\rm\,Allocation \,Base\, For\, Mixing: \frac{600}{1,000} = 0.6 \\\\So allocated amount for mixing is 0.6 \times \$320,000 = \$192,000\\\\Allocation \,Base\, for\, Bottling\, = \dfrac{400}{1,000} = 0.4\\\\So allocated amount for bottling = 0.4 \times \$320,000= \$128,000

Thus, the office costs allocated to the Bottling department is equal to $128,000.

Learn more about allocation costs here:

brainly.com/question/26656438

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