Answer
Retained earnings at the beginning of Year 2 was: $1,450
Explanation
Revenue = $2,100
Retained Earnings Closing Balance = $1,850
Expenses = $1,150
Dividends = $550
Retained Earnings Closing Balance = Revenue - Expenses - Dividends + Retained Earning Beginning Balance
$1,850 = $2,100 - $1,150 - $550 + Retained Earning Beginning Balance
Retained Earning Beginning Balance = $1,450
It is called A COST DRIVER. A cost driver refers to any factor that causes a change in the cost of an activity. Cost driver is used to assign overhead costs to the quantity of a particular goods that is manufactured. Example of a cost driver is direct labour hours input into a production operation.
Answer:
TRUE
Explanation:
As the direct materials are introduced at the beginning of the process the only factors which are not completed are the conversion cost which are: labor cost and manufacturing overhead.
The equivalent units will be calculated using a 100% of completion in raw materials.
Answer:
(a) update depreciation for 2018
Debit ; Depreciation $10,800
Credit Accumulated Depreciation $10,800
(b) record the sale
Debit : Cash $12,960
Debit : Accumulated Depreciation $62,100
Credit : Profit and Loss $10,260
Credit : Equipment at Cost $64,800
Explanation:
(a) update depreciation for 2018
Recognize deprecation
(b) record the sale
Recognize proceeds from sale and profit or loss from sale