Answer:
$0.65
Explanation:
The unit cost per can of soup transferred to finished goods warehouse during March is the total manufacturing costs incurred by both Mixing and Cooking department and Canning Department divided by the total number of cans of soup transferred.
Both departments incurred $122,900 in manufacturing costs i.e($113,400+$9,500) while the total number of gallons of soup transferred to finished goods warehouse was 190,000 cans
Unit cost per can of soup=$122,900/190,000=$0.65
Because it pays a higher rate of interest.
A savings account is better than a checking account for saving money because they normally pay a higher interest rate than a checking account. Quite often, a checking account will not pay any interest at all.
Answer:Please refer to the explanation section
Explanation:
The question is incomplete, amounts of production costs like Direct Material, direct labour and Variable/Fixed manufacturing overheard were not given, we will explain the absorption cost and variable cost in detail so that the student would be able to calculate absorption cost and variable cost balances easier.
Absorption costing Method
Total Manufacturing costs are allocated to Finished goods Product. Absorption Costing method assigns or allocates the total cost of Manufacturing or total production costs to units of Finished Goods produced. each unit of finished goods thus represents total costs of production per unit or Total Manufacturing/Production cost is the Balance of Finished Goods.
Total Manufacturing/Production cost = direct labor cost + direct material cost + variable and fixed Manufacturing overheads cost.
Finished Goods Balance = Total Manufacturing/Production cost
A unit of Finished Goods = Total Manufacturing costs/units produced
Variable costing method
Variable costing method fixed manufacturing costs are treated as an expense, Variable Manufacturing costs are the only allocated to inventory. The value or Balance of inventory consist of Variable Manufacturing cost like Direct labor, Direct Material and Variable Manufacturing costs. Finished Goods Balance equals total Variable Manufacturing cost
Answer:
Cost of inventory = $2,410
Explanation:
<em>The payment terms 2/10, n/30 implies that if the Company pays within te next 10 days of purchase, it will receive a discount of 2% of the net invoice amount and that the latest date for the settlement of bill is within the next 30 days of purchase.
</em>
The cost of the inventory would be the sum of the next purchase cost , shipping charges, storage fees and insurance fee
Net purchase cost net of discount = 2,000 - 40= 1,960
Cost of inventory= 1,960 + 300 + 50 +100 =$2410
Cost of inventory = $2,410
