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3 years ago

Which of the following statements is CORRECT?

Business

1 answer:

Lera25 [3.4K]3 years ago

3 0

Answer:

c. The "apparent," but not necessarily the "true," financial position of a company whose sales are seasonal can change dramatically during a given year, depending on the time of year when the financial statements are constructed.

Explanation:

Financial statements are used to show the financial activity of a business within a given period.

One of the principles of a accounting is periodicity. This requires businesses to report their financial position at regular intervals consistently, and not in an inconsistent manner. So if a business reports their finances twice a year. At year end and at mid year, it is possible that at mid year due to seasonal sales performance will be high and business is perceived to be highly profitable.

But financial report at end of year in the off-season will show low performance.

So for seasonal businesses there can be apparent view of a business during the year that can change dramatically because of time at which reports are made.

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Hilton Company manufactures two products: Product A100 and Product X500. The company currently uses a plantwide overhead rate ba

Serggg [28]

Answer:

Results are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 765,000 / (7,000 + 6,200)

Predetermined manufacturing overhead rate= $57.95 per direct labor hour

Now, we can allocate overhead to each product:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product Y:

Allocated MOH= 57.95*7,000= $405,650

Product Z:

Allocated MOH= 57.95*6,200= $359,390

Finally, the allocation rates based on ABC:

Machining= 231,000 /11,000= $21 per machine hour

Machine setups= 180,000/300= $600 per setup

Production design= 94,000 / 2= $47,000 per product

7 0

3 years ago

MC Qu. 114 Lowden Company has an overhead application... Lowden Company has an overhead application rate of 155% and allocates o

bogdanovich [222]

Answer:

the overhead amount recorded is $139,500

Explanation:

The computation of the overhead amount recorded is shown below:

= Overhead application rate × direct material cost

= 155% × $90,000

= $139,500

Hence, the overhead amount recorded is $139,500

We simply applied the above formula so that the correct value could come

7 0

3 years ago

If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

HACTEHA [7]

Answer:Option C Paid-In Capital in Excess of Par will be credited for $66,000

Explanation:

Given

No of shares 1,500

Par value $6

Common stock $75,000

Par value of stock = No of shares x Par value

=1500 x 6

=9,000

Excess paid in capital = Common stock - Par value

=75000-9000

=$66,000

So the Paid in capital which is excess of par value will be credited. It can also be termed as the market value of the shares. Par value will be mentioned in the share document. When there is additional paid in capital it is a credit balance in company accounts.

5 0

3 years ago

When marx argued that capitalism “reproduces the class structure,” he meant that?

Lisa [10]

If you are rich, you own the means to make more money. Your son will then take over from you, and the class structure will remain intact. Likewise, if you are poor, you can only afford to work in a factory, you cannot pay for a good education for your child, they'll end up working in a factory to survive. The class structure remains the same, each generation of rich people will exploit every generation of poor people. That was also why Marx thought the workers must unite and take control of the means of production, so that they would not be exploited.

6 0

4 years ago

In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,000 and endin

Ipatiy [6.2K]

Answer:

b. $307,000

Explanation:

Costs to be accounted in cost reconciliation report = Opening balance of work in process + Cost of production added during the month

= $24,000 + $283,000

= $307,000

Cost reconciliation report shows what costs need to be accounted for in a month and the manner in which they are actually accounted for.

It is a step in preparation of production report which shows how beginning work in process inventory and the costs which are added to production during the period are recorded.

Hence in cost reconciliation report pertaining to the month of Aug, opening work in process and costs added to production during the month are recorded.

3 0

4 years ago