Answer:
$740
Explanation:
The computation of phantom profit is shown below:-
According to FIFO,
Closing Stock = (390 × $12) + ( 40 × $11)
= $4,680 + $440
= $5120
According to LIFO
Closing Stock = (350 × $10) + (80 × $11)
= $3,500 + $880
= $4,380
Amount of Phantom Profit
= $5120 - $4,380
= $740
Therefore for computing the phantom profit we simply deduct LIFO from FIFO.
Answer:
a. $142,500
b. $86,250
Explanation:
a. The computation of the total direct manufacturing cost is shown below:
= (Direct material per unit + direct labor per unit) × number of units manufactured
= ($7.20 + $4.20) × 12,500 units
= $142,500
b. The computation of the total indirect manufacturing cost is shown below:
= (Variable manufacturing overhead per unit + Fixed manufacturing overhead per unit) × number of units manufactured
= ($1.70 + $5.20) × 12,500 units
= $86,250
Answer:
$12,400
Explanation:
The computation of the total Manufacturing Overhead is shown below:
= Glue for frames + Plant depreciation + plant foreman's salary + plant janitors wages + Oil for manufacturing equipment
= $350 + $6,000 + $4,500 + $1,400 + $150
= $12,400
This cost is always reported only indirect cost with respect to the factory or production overhead cost
Answer:
Chapter 13
Explanation:
Federal bankruptcy law is a set of rules that allows the cancellation of certain debts and also specify time for the repayment of non dis chargeable debts. It contains different section that addresses different bankruptcy cases.
Chapter 13 of the law deals with debt adjustment plans. It allows that some loans be re structured and the principal value of the collateral reduced to the market value. Repayment rate can also be lowered and the period extended over a longer period to allow ease of payment.
