Answer:
The correct answer is letter "B": Identification of cost pools, identification of cost drivers, calculation of pool rates, assignment of cost to products.
Explanation:
Activity-Based Costing or ABC is a managerial accounting method that assigns certain indirect costs to the products incurring the bulk of those costs. ABC is primarily used in the manufacturing sector to make a better calculation of the true cost of production per unit. For that purpose, ABC follows this sequence:
1) Identification of the activities for the creation of the product
2) Divide the activities into cost pools
3) Assign each cost pool to a cost driver
4) Calculation of the cost driver rates
5) Assignment of cost to products
Answer:
The computation is shown below:
Explanation:
The journal entries are shown below:
a. Account payable $70,000
To Notes payable $70,000
(Being the issuance of the note is recorded)
b. Note payable $70,000
Interest expense $1,575
To Cash $71,575
(Being the payment of the note at maturity date including interest is recorded)
The computation is shown below:
= $70,000 × 9% × 90 days ÷ 360 days
= $1,575
We assume 360 days in a year
Now the effects on the accounts and the financing statement for issuance of the note is shown below:
Balance sheet
Assets = Liabilities + Stockholder equity Income statement cash flow statement
No effect = Account payable - $52,000 + No effect No effect + no effect
Note payable + $52,000
It really depends on how old they are depending on how old they are I would add them to the 504 plan. Which would be for older people for retirement.
Answer:
Total sales tax payable:170, sales :2000
Explanation:
Sale price x sales tax rate = sales tax payable
2000 x .085 (6%+2.5%) = 170
it doesn’t say so I’m assuming that the 2,000 credit sale does NOT include the sales tax due.
