Answer:
Debited by $400
Explanation:
Calculation for the Cost of Goods Sold
Using this formula
Cost of Goods Sold= Inventory on hand*(Cost-Current replacement cost)
Let plug in the formula
Cost of Goods Sold=200 units * ($12 - $10)
Cost of Goods Sold= 200 units*2
Cost of Goods Sold = $400 Debited
Therefore the Cost of Goods Sold will be:$400 Debited
Answer:
The maximum deduction is $207,000.
Explanation:
As per MACRS depreciation table 5 years half year conversion depreciation rate for first year is 20% - 100%/5 = 20%
The maximum deduction is $1,035,000 * 20% = $207,000
Answer:
The outflow of cash in respect of rent is $270,000
Explanation:
The task is compute cash outflows on rent in the year 2018.
The prepaid rent at the end of 2017 relates to rent expense but was paid last year hence should be deducted from rent expense in the year,
On the other hand , the prepaid expense for 2018 was paid during the year hence should be added to rent expense in order to cash cash outflow relating to rent expense
Rent expense $259,000
Prepaid rent 2017 ($94,000)
prepaid rent 2018 $105,000
Cash paid in 2018 $270,000
Ultimately the outflow of cash in respect of rent in the year is $270,000
Answer:
price variance $14,040 U
quantity variance $ 5,650 F
rate variance $ 10,700 U
efficiency variance $ 26,800 U
Explanation:
Missing information attached:
Purchase of Aluminium:
66 ending + 3,530 used - 46 beginning = 3,510
DIRECT MATERIALS VARIANCES
std cost $25.00
actual cost $29.00
quantity 3,510 (purchase)
difference $(4.00)
price variance $(14,040.00)
std quantity 3756.00 (939 units x 4 pounds per unit)
actual quantity 3530.00
std cost $25.00
difference 226.00
quantity variance $5,650.00
DIRECT LABOR VARIANCES
std rate $40.00
actual rate $42.00
actual hours 5,350
difference $(2.00)
rate variance $(10,700.00)
std hours 4680.00
actual hours 5350.00
std rate $40.00
difference -670.00
efficiency variance $(26,800.00)
