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marshall27 [118]
3 years ago
10

Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the b

eginning of the month was $79,000 and at the end of the month was $72,000. The cost of goods manufactured for the month was $361,600. The actual manufacturing overhead cost incurred was $118,400 and the manufacturing overhead cost applied to jobs was $112,000. The adjusted cost of goods sold that would appear on the income statement for July is:
Business
1 answer:
mr Goodwill [35]3 years ago
4 0

Answer:

$375,000

Explanation:

Unadjusted cost of goods sold = Opening stock of finished goods  + Cost of goods sold - Closing stock of finished goods

Unadjusted cost of goods sold = $79,000 + $361,600 - $72,000

Unadjusted cost of goods sold = $368,600

The overhead applied is $112,000 and the actual manufacturing overhead is $118,400. As the actual manufacturing overhead is more than the overhead applied, the overhead is under applied as shown below

Under-applied Overhead = Actual manufacturing overhead - Overhead applied

= $118,400 - $112,000

= $6,400

Now, calculation of the adjusted cost of goods sold is as follow

Adjusted cost of goods sold = Unadjusted cost of goods sold + Under-applied Overhead

= $368,600 + $6,400

= $375,000

Thus, the adjusted cost of goods sold is $375,000

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American Bakeries had a fleet of over 3,000 delivery trucks. Because of the increasing cost of gasoline, the company was interes
Lisa [10]

Answer:

American bakeries will win

Explanation:

In the given case the American bakeries will win.

It is given in the question that the contract between the American Bakeries and the Empire is a requirement contract.

The requirement contract not necessarily means that the two parties will have the trade.

Therefore,

The American Bakeries does not require any purchase from the Empire

3 0
3 years ago
From a firm's point of view, when the demand for a good has a price elasticity of 0.5, then, all things remaining the same, a(n)
jeyben [28]

Answer:

The correct answer is: increase in the price of the good will increase the firm's revenue.

Explanation:

When the demand for goods has a price elasticity of 0.5, it implies that the demand is relatively inelastic. This implies that a proportionate change in price will cause less than proportionate change in price.

So when the firm increases the price of a good, this will lead to a smaller decline in the quantity demanded of the commodity. As a result, the total revenue will increase.

6 0
3 years ago
Exercise 19-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet comput
Juliette [100K]

Answer:

Variable costing principle uses variable cost alone while absorption costing uses all cost both fixed and variable that are related to the production

1)Variable costing

Income = $28,000,000

Cost of production - $9,600,000

Gross profit = 18,400,000

Admin & selling expenses =509,091

PBIT = 17,890,909

2)Absorption costing

Income - $28,000,000

Cost of production  18,400,000

Gross profit        9,600,000

Admin $ selling expenses 5,259,091

PBIT = 4,340,909

3)Reported income is identical under both variable and absorption costing when production is the same with sales and there is no opening finished good inventory . All costs including the fixed costs are absorbed into the cost of production

Explanation:

Direct material - $40/unit

Direct labor $60/unit

Variable overhead cost - $2,200,000

Fixed overhead cost - $8,800,000

Variable admin cost - $700,000

Fixed admin cost - $4,750,000

Unit produced - 110,000

Unit sold - 80,000

Selling price - $350

sales revenue - 80000*$350 - $28,000,000

Cost

Direct material = 80000* 40= $3,200,000

Direct labor      = 80000*60 = $4,800,000

Variable overhead = 2200000/110000 * 80000 = $1,600,000

Fixed overhead = $8,800,000 =

Variable admin= 700000/110000 * 80000 = $509,091

Fixed admin = $ 4,750,000

Total cost = $23,659,091

7 0
3 years ago
Mr. Coffey bought a house for $195,000. He made a 20% down payment. The interest rate is 5.25% for 30 years.How much was Mr Coff
s344n2d4d5 [400]

Answer:

$39,000

Explanation:

Down payment refers to the amount that Mr. Coffey paid upfront at the time of purchasing the house. It is usually a percentage of the total cost and is paid in a lump sum.

In this case, Mr. Coffey 20 % of the cost of the house

i.e., 20% of $195,000

=20/100 x $195,000

=0.2x$195,000

=$39,000

4 0
3 years ago
Scenario:Hector runs a small graphic-design company.He has two assistants. Sasha is very good at producing computer-generated gr
Tems11 [23]
We are given the skills of each worker:

Sasha is very good at producing computer-generated graphics
Maurice is skilled at designing logos with pen and paper

To address the immediate problem, Hector's action should be to assign Maurice to do the design in a paper then pass it to Sasha for generating it on the computer. It could also be that if a client requests a paper design, Maurice does it and for computer-generated designs, Sasha will do it. 

The corrective action that he should do is let Sasha and Maurice attend trainings for their weaknesses. <span />
8 0
3 years ago
Read 2 more answers
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