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pishuonlain [190]
3 years ago
13

A company manufactures a single product. During the manufacturing process, a small number of units do not pass final inspection

and are destroyed. What is the appropriate accounting treatment for the cost of these units
Business
1 answer:
faust18 [17]3 years ago
5 0

Answer:

Added to the cost of good units produced

Explanation:

If the goods that do not pass the final tests are destroyed, it means they do not have any residue value. The items are, therefore a production loss to the company.

For accounting purposes, the cost of the defective will be the same as the cost of quality products. They use the same raw materials, labor and production process.  To the account, the difference is that the good product is sold, but the other is destroyed. The total costs of damaged items should be added to the cost of production and spread to all quality produced units.

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Zielflug [23.3K]

For a Profit Organization:

1. Select the best business structure which favors you in taxes and protect. Such as corporation, limited liability company, sole proprietorship, general partnership, limited partnerships or a professional incorporation.

2. Decide the name you want to use to advertise your business.

3. Register company name with the state, county and the federal if applicable.

4. Check licensing requirements with the city county, city, state and federal.

5. Open a bank account

6. Advertising and Marketing

For a Non Profit Organization:

1. There are two types of non profit organizations religious and good cause.

2. It has to be registered wither with the state or county, depending upon the structure and the state you want to incorporate.

3. Apply with the federal to obtain a tax exempt status, so that your donors can claim donations on their tax returns.

4. Open a bank account

5. Delegate duties what you have mentioned in the article you submitted to the Internal Revenue Service.

8 0
3 years ago
The net income reported on the income statement for the current year was $275,000. Depreciation recorded on fixed assets and amo
hichkok12 [17]

Answer:

$324,000

Explanation:

The preparation of the Cash Flows from Operating Activities - Indirect Method is presented below:

Cash flow from Operating activities

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Add : Depreciation expense $30,000

Add: Amortization expense $4,000

Add: Decrease in accounts receivable $6,000     ($102,000 - $108,000)

Add: Decrease in inventory $5,000 ($88,000 - $93,000)

Less: Increase in prepaid expenses -$2,000 ($8,500 - $6,500)

Add: Increase in account payable $6,000 ($95,000 - $89,000)

Net Cash flow from Operating activities         $324,000

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3 years ago
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3 years ago
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ira [324]

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In the given case, Drew is  writing the report to spread the information that they are following all the guidelines related to safety and quality.

Thus, from the above we can conclude that the correct option is C.

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