Answer:
Amount of underapplied or overapplied overhead cost for the year
$97000 - Underapplied
Schedule of cost of goods manufactured for the year
Direct Material 3885000
Direct Labor 60000
Overheads 376000
Total Manufacturing Costs 4321000
Add Opening Inventory WIP 400000
Less Closing Inventory WIP (700000)
Cost of Goods Manufactured 4021000
Explanation:
Amount of underapplied or overapplied overhead cost for the year
Underapplied or Overapplied overhead cost =Actual Overhead - Applied Overhead
$473000-$376000= $ 97000
Schedule of cost of goods manufactured for the year
<em>Direct Materials Calculation </em>
Opening 200000
Add Purchases 4000000
Available 4200000
Less Closing Material 300000
Materials Consumed 3900000
Less Indirect Materials 15000
Direct Materials Consumed 3885000
If your a busy small business owner, taking time away from your store makes you less efficient. The trade offs for using this premium service are 1. your spending more money 2. control over quality. Vise versa if your paying more for the “best groceries” then that may not be an issue. Also be aware that another issue is stocking, going to the store yourself does not guarantee that the store will have all items in stock when you go. 3. Time, taking time to grocery shop takes away from your business or the cost of an employee to watch the business or do the shopping for you having you rely on a third party’s judgment. 4. Gas, the cost of gasoline to go to and from the store. If all these are added up then you are essentially paying more for your “in person” groceries as it is. Choosing to grocery shop yourself saves you money (although how much? Once everything is taken into account?) but again the time it takes away is significant. For a busy small business owner time is extremely important and this is why the trade off of cost or added expenses for groceries may be worth it. (I hope this helps guide you in answering this question).
Answer:
The personnel, procedures, devices, and records used by an entity to develop accounting information and communicate this information to decision makers.
Explanation:
Accounting system is a system used to organise financial information. Accounting system can be manual or electronic
Answer:
account receivables 600 debit
allowance for doubful account 600 credit
--to revert the write-off--
cash 600 debit
account receivables 600 credit
--to record the payment from Acme Inc--
Explanation:
The company will revert the write-off of Acme. Inc account and then record a collection as usual
We use the allowance account as previously the company did as follows:
allowance for doubful account 1,200 debit
account receivables 1,200 credit
to write-off the account.
We reverse this by the amount paid by Acme which is 600
Then, we record receiving the cash (debit) and decreasing the account receivable (credit)
Answer:
C. $5,150
Explanation:
Calculation for what will be the value of interest payment at the end of fifth year in real dollars
First step is to calculate the Interest amount per year
Interest amount per year = 100,000*6%
Interest amount per year = $6,000
Now let calculate the value of interest payment at the end of fifth year in real dollars
Value of interest payment in 5th year in real dollars = 6,000/(1+3.1%)^5
Value of interest payment in 5th year in real dollars= 6,000/1.164913
Value of interest payment in 5th year in real dollars= $5,150
Therefore the Value of interest payment in 5th year in real dollars will be $5,150
