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2 years ago

Which inventory method generally results in costs allocated to ending inventory that will approximate their current costs?

1 answer:

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Which inventory method generally results in costs allocated to ending inventory that will approximate their current costs? FIFO. The FIFO inventory method stands for first-in, first-out. This method allows businesses to keep track of their inventory on an old inventory out before the new inventory basis. The first out inventory is recorded as the first items sold even if they aren't exactly the oldest item.

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Kidzo Inc., a toy car company, has several groups in its manufacturing unit dedicated to do different tasks. For example, it has

MissTica

Process departmentalization

Explanation:

Departmentalization

An organization has separate departments based upon the different task each performs for the organization.
Functional departmentalization - a manufacturing company may have a production department, sales and marketing department, an accounting department, and a human resources department.

Product departmentalization - a company may have a wide range of products
Customer departmentalization - a company may have different customer bases
Geographical departmentalization - a company can hire employees to serve different customers from different geographical locations
Process departmentalization - a company may have employees grouped into teams for a specific process

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2 years ago

Global Corporation had 58,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors

wolverine [178]

Answer:

Jul-01

Dr Retained Earnings $324,800

Cr Common stock dividend distributable $232,000

Cr Paid-in capital in excess of par value - Common stock 92,800

Explanation:

Preparation of the journal entry to record the dividend declaration is:

Jul-01

Dr Retained Earnings $324,800

(58,000 shares x 20% x $28)

Cr Common stock dividend distributable $232,000

(58,000 shares x 20% x $20)

Cr Paid-in capital in excess of par value - Common stock 92,800

(58,000 shares x 20% x $8)

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2 years ago

Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured

Tamiku [17]

Answer:

Explanation:

Machining Department Finishing Department Estimated Manufacturing Overhead by Department $800,000 $200,000

Trail Running Shoes 360,000 machine hours 6,000 direct labor hours Running Apparel 40,000 machine hours 34,000 direct labor hours

Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department.

At the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel:

Machining Department Finishing Department Trail Running Shoes 362,000 hours 5,500 hours

Running Apparel 37,000 hours 35,000 hours

How much manufacturing overhead will be allocated to running apparel?

For The Overhead Absorption Rate for Machining Department

Trail Running Shoes = (360,000/360,000+40,000)* $800,000 = $720,000

Running Apparel = (40,000/360,000+40,000)* $800,000 = $80,000

For The Overhead Absorption Rate for Finishing Department

Trail Running Shoes = (6,000/6,000+34,000)* $200,000 = $30,000

Running Apparel = (34,000/6,000+34,000)* $200,000 = $170,000

Therefore the running department would have been allocated ($80,000+$170,000) which is $250,000 during the period.

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2 years ago

Maple Farms, Inc. v. City School District of Elmira. Read the summary of the court opinion. Could something like this bankrupt a

tester [92]

The correct answers to these open questions are the following.

Maple Farms, Inc. v. City School District of Elmira.

Could something like this bankrupt a company?

Yes, it can, if the proper forecast were not done taking into consideration all of the possible variables at medium and long-range.

Do you agree with the decision?

It was a tough decision because the court declared in its decision that the performance was not impracticable, as Maple Farm Inc indicated when decided to break the contract.

In strict theory, I agree with the court's decision because the explanation was that an "impractical" occurred when an event happened totally unexpected. And in this case, Mapple Farm Inc could have taken extra provisions knowing that milk had a 10% increase the last year and had the chance of more increases in the present year.

That is how a company can avoid this type of situation. Taking better provisions, contemplating all kinds of variables, knowing that in the future, something unexpected can happen and could be prevented with the proper forecast.

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2 years ago

The Tax Cuts and Jobs Act passed in December, 2017, eliminated any personal exemptions ($4,050 per preson) but increased the sta

Sergio039 [100]

Answer:

Answer for the question = the threshold went down by = $9000.

The Tax Cuts and Jobs Act passed in December, 2017, eliminated any personal exemptions ($4,050 per preson) but increased the standard deduction to $12,000 for single filers and $24,000 for joint filers beginning in 2018 compared to $6,350 and $12,700 respectively in 2017. Ignoring any other changes made by the new tax law (and there are other important changes such as expansion of a child tax credit), what would the threshold for having any taxable income for a family of two adults and three dependent children be in 2018 compared to 2017? (Hint: the threshold in 2017 was the standard deduction for a married couple with five personal exemptions. "

explanation is attached .

Explanation:

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2 years ago