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3 years ago

At the end of the period, the balance left in the factory overhead account is equal to the

Business

1 answer:

katrin2010 [14]3 years ago

6 0

Answer:

d.total factory overhead cost variance.

Explanation:

In manufacturing accounting, at the beginning of the period, manufacturing overheads (i.e. costs other than Direct Material and Direct Labor) has been applied to Work-in-process using a predetermined overhead rate. At the end of the period, if the manufacturing overhead account shows a debit balance, that signifies that overhead has been under-applied (i.e. the manufacturing overhead cost applied to work in process is less than the actual manufacturing overhead cost for the period), and contrariwise if the manufacturing overhead account shows a credit balance, it means the overhead is over-applied (i.e. the manufacturing overhead cost applied to work in process is more than the actual manufacturing overhead cost for the period). In any case this balance warrants an adjustment to close out the books, by transferring it to the cost of goods sold account.

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Houston Houston Office Equipment manufactures and sells metal shelving. It began operations on January 1,2014.

Vanyuwa [196]

Solution:

1) If 2 pounds of direct materials are used to make one unit of finished product, then 115,000 units × 2 lbs, or 230,000 lbs were used at $0.65 per lb of direct materials i.e. ($149,500 ÷ 230,000 lbs.).

The Formula for calculating Ending Direct Material Cost = [Ending Direct Material Inventory * Cost per lb]

Therefore, Ending Direct Materials cost is 1,900 lbs. * $0.65 = $1,235.

2) Manufacturing Costs for 115,000 units

Variable Fixed Total

Direct materials costs – $149,500 + Direct manufacturing labor costs – 31,500 + Plant energy costs – 3,000 + Indirect manufacturing labor costs

(Variable + Fixed) i.e. 15,000+12,000 - 27,000 + Other indirect manufacturing costs

(Variable + Fixed) i.e. 10,000+32,000 - 42,000

So, Cost of goods manufactured - $253,000

Average unit manufacturing cost = $253,000 ÷ 115,000 units

= $2.20 per unit

Finished Goods Inventory at Dec. 31, 2014 = $15,400

Therefore Finished goods inventory total units = $15400 / $2.20

= 7,000 units

3) Units sold in 2014 = Beginning inventory + Production – Ending inventory

= 0 + 115,000 –7,000

= 108,000 units

Therefore, Selling price in 2014 = Total Revenues / Units Sold

= $583,200 ÷ 108,000

= $5.40 per unit

4) Operating Income for 2014

Revenues(108,000 units sold × $5.40) = $583,200

Cost of units sold:

Beginning finished goods, Jan. 1, 2014 = $0

Cost of goods manufactured = $253,000

Cost of goods available for sale = $253,000

Ending finished goods, Dec. 31, 2014 = $15,400

So, Cost of Units sold ($253000 - $15400) = $237,600

Therefore, Gross margin = Total Revenue - Cost of Units Sold

= $583,200 - $237,600

= $345,600

Operating costs: Marketing, distribution, and customer-service costs

Variable + Fixed i.e. ($126,000 + $48,000) = $174,000

Administrative costs = $57000

Total Operating Costs = $231,000

Therefore Operating income for 2014 = $345600 - $231,000

= $114600

3 0

3 years ago

___________is a partnership Is also called the articles of incorporation.

nadya68 [22]

Answer:

Explanation:

here is the correct question :

A partnership agreement:

A. Is not binding unless it is in writing.

B. Is the same as a limited liability partnership.

C. Is binding even if it is not in writing.

D. Does not generally address the issue of the rights and duties of the partners.

E. Is also called the articles of incorporation.

A partnership agreement is a contract between partners in a partnership. it contains guidelines on the relationship between the partners and responsibilities of partners. the partnership agreement creates legally binding relationships among the partners

6 0

3 years ago

Butler Corporation is considering the purchase of new equipment costing $30,000. The projected annual after-tax net income from

kobusy [5.1K]

Answer:

($3,100)

Explanation:

Net cash flows each year = Projected annual after-tax net income + Depreciation

Net cash flows each year = $1,200 + $10,000

Net cash flows each year = $11,200 each year

Total value of inflows in 3 years = Net cash flows each year * Annuity factor of (10%,3 years)

Total value of inflows in 3 years = $11,200 * 2.4018

Total value of inflows in 3 years = $26,900

Net Present value = Present value of inflows - Cash outflow

Net Present value = $26,900 - $30,000

Net Present value = ($3,100)

So, tnet present value of the machine is ($3,100).

7 0

3 years ago

The most socially responsible companies establish _____ for their vendors, setting clear policies for human rights, wages, safet

AfilCa [17]

In order to help the student expand his/her knowledge I will help answer the question. This in hope that the student will get a piece of knowledge that will help him/her through his/her homework or future tests.

The most socially responsible companies establish codes of conduct for their vendors, setting clear policies for human rights wages, safety, and environmental impact. In fact many of this companies have this establish today.

I hope it helps, Regards.

3 0

3 years ago

A foreign subsidiary of a U.S.-based company has been notified of a loss contingency with an estimated cost ranging between $220

Marizza181 [45]

Answer:

The amount recognized as a provision for loss contingency is $220,000

Explanation:

According to the United States Generally Accepted Accounting Principles (US GAAP), the provision for loss contingency should be recognized based on the estimated amount. If the range is given then we should report the lower amount or minimum amount

In the given question, two amounts are given i.e $220,000 and $250,000

So $220,000 should be reported

3 0

4 years ago