Answer:
$90,139.00
Explanation:
ending Work in process inventory = Beginning WIP + Direct Materials + Direct labor + Material Overhead - Cost of goods manufactured
Beginning Work In Progress = 0
Direct Materials = 0.80*$96,300
= $77,040
Direct labor = $57,300
Material Overhead = indirect labor + other manufacturing head
= $14,900 + $108,300
= $123,200
ending Work-in-Process Inventory
= beginning inventories + direct material + direct labor + material overhead
= (0 + $77,040 + $57,300 + $123,200)*0.35
= 257,540*0.35
= $90,139
Therefore, The value of the ending Work-in-Process Inventory is $90,139.
Answer: C. A new compound formed when nitrogen and hydrogen chemically reacted.
Explanation:
Due to the temperature increase, the atoms of both Nitrogen and Hydrogen reacted chemically with one another and formed a new compound which was still colorless but now had a strong odor as well.
This new compound is known as Ammonia with the chemical composition NH₃. It is formed when Hydrogen and Nitrogen react chemically. Ammonia is a colorless gas with a sharp strong odor.
Answer:
Equipment, credit, $229,100
Explanation:
we record the entry when we purchase the equipment is
we debit the equipment, and credit the cash/accounts payable depending on whether we paid the cash or purchased the equipment on account.
We debit the equipment because equipment is our asset, and when asset goes up we debit them. We credit the cash because again cash is our asset and when asset goes down we credit them.
Now at the time of disposal, we want to remove the asset from our balance sheet. Equipment is disposed now. In other words, equipment is our asset, and disposing the equipment means asset goes down, and we show this effect by credit the equipment.
Answer:
a. Overstates Year 1 cost of goods sold.
b. Understates Year 1 net income
c. Understates Year 2 cost of goods sold
Explanation:
a. The formula for Calculating the Cost of Goods sold is;
<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>
If the closing inventory is understated, it will reduced the amount being subtracted from Purchases and Opening inventory which would means that Cost of Goods sold will be overstated.
b. The Cost of goods sold is deducted from sales to give Gross profit. If Cost of goods is overstated, it will reduce Gross Profit higher than it should. A lower Gross Profit equates to a lower Net Income.
c. Going by the formula in <em>a;</em>
<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>
In Year 2, the understated Year 1 closing stock will become the understated Year 2 Opening stock. With the opening stock understated, the Cost of goods will be understated as well because Opening stock is meant to increase Cost of goods sold as the formula shows. If it is understated, the amount that it will add will be understated as well.
