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3 years ago

LO 4.7In a job order cost system, indirect labor incurred is debited to which account?

Business

1 answer:

anyanavicka [17]3 years ago

5 0

Answer:

manufacturing overhead

Explanation:

Since the manufacturing overhead comprises of all the indirect cost related to the factory like - depreciation on factory equipment, property taxes, indirect labor, indirect material, manager salary who worked for factory, etc

Since indirect labor has come under the manufacturing overhead so, the same is debited to manufacturing overhead as indirect labor is incurred

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In economics, if a good is inelastic,

Mariulka [41]

In economics, if a good is inelastic, then <u>its supply or demand is not sensitive to price changes. </u>

Changes or fluctuations in market prices does not affect the supply and the Demand of inelastic goods.

<h2>Further Explanation; </h2>

Inelastic goods, are types of goods whose demand and supply is not affected by changes in market prices. That is an increase or decrease in market price does not affect their supply or demand.
When the price of an inelastic good changes, its supply and demand is unaffected.
Examples of such goods include, water and food. Therefore, for inelastic goods, the consumer buying strength and habits remain the same.

<h3>Demand and supply in determination of market price </h3>

Demand refers to the quantity of goods or services that consumers are willing and able to buy at a particular price while supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.

One of the factor that determine market prices are the forces of demand and supply, this is based on the ability and willingness of buyers and sellers to undertake selling and buying.
Buying and selling occurs at an equilibrium price that is agreed upon by sellers and buyers.
This means the sellers and buyers are willing to exchange a certain quantity of a commodity at this price. Thus, price depends on the demand and supply in the market.
However, for <u>inelastic goods</u> such as water and food, the consumer has no option than to buy them at existing prices since they are necessity goods.

Keywords; Inelastic goods, demand and supply, market price.

<h2>Learn more about: </h2>

Demand and supply; brainly.com/question/6749722
Effect of supply and demand on market price: brainly.com/question/3522474

Level; High school

Subject: Business

Topic: Demand and supply

Sub-topic: Types of goods

8 0

3 years ago

Read 2 more answers

Sales (19,500 units at $30 per unit) $585,000 Variable expenses 409,500 Contribution margin 175,500 Fixed expenses 180,000 Net o

vichka [17]

Answer:

Automated

Sales (19,500 units at $30 per unit) $585,000 $585,000

Variable expenses 409,500 351,000

Contribution margin 175,500 234,000

Fixed expenses 180,000 252,000

Net operating loss $(4,500) $( 18,000)

New Cm ratio= Contribution Margin/ Sales Revenue

= $ 234,000 $ 585,000 = 0.4

Break-even point in dollars= Fixed Costs/ 1- (variable Cost/ Sales)

= 252,000/ 1- (351,000/ 585,000)

= 252,000/ 1-0.6

= 252,000/0.4= $ 630,000

The resulting $ 630,000 is the break even point at which neither a loss nor a profit is incurred.This can be checked as follows.

Sales $ 630,000

Variable Costs ( 60 % $ 630,000) $ 378,000

Contribution Margin $ 252,000

Less Fixed Expense <u>$ 252,000</u>

Profit <u> 0 </u>

Break even point in units = Fixed Costs/ Contribution Margin in units

= $ 252,000/ (30-18)

=$ 252,000/ $ 12= 21,000 units

Two Contribution format Income Statements:

Automated

Sales (26,000 units at $30 per unit) $780,000 $780,000

Variable expenses 546,000 468,000

Contribution margin 234,000 312,000

Fixed expenses 180,000 252,000

Net operating Profit $ 54,000 $ 60,000

Working:

Variable Costs per unit = $ 409500/19500= $ 21

After reduction variable costs = $ 21- $3= $ 18

4 0

3 years ago

An easement that benefits an individual or a legal entity, rather than a dominant estate

Mazyrski [523]

Answer:

An easement in gross is an easement that benefits an individual or a legal entity, rather than a dominant estate.

Explanation:

Any easement that benefits an individual or a legal entity, rather than a dominant estate is referred to as easement in gross.

3 0

3 years ago

The transactions of Spade Company:

diamong [38]

Answer:

Trial Balance

Debit Credit

Cash $8,982

($16,500 - $479 + $1,947 - $9,125 - $530 + $1,469 - $800)

Common Stock $16,500

Office Supplies $479

Office Equipment $9,125

Accounts Payable ($9.125 - $9,125) $0

Service Fees ($1,947 + $3,498) $5,445

Accounts Receivable ($3,498 - $1,469) $4,967

Rent Expense $530

Dividends $800

Totals $21,945 $21,945

Explanation:

A trial Balance is a list of balances that are extracted from the ledger accounts from which the financial statements are prepared.

First Record the Transaction, then determine account balances.

Cash $16,500 (debit)

Common Stock $16,500 (credit)

Office Supplies $479 (debit)

Cash $479 (credit)

Office Equipment $9.125 (debit)

Accounts Payable $9.125 (credit)

Cash $1,947 (debit)

Service Fees $1,947 (credit)

Accounts Payable $9,125 (debit)

Cash $9,125 (credit)

Accounts Receivable $3,498 (debit)

Service Fees $3,498 (credit)

Rent Expense $530 (debit)

Cash $530 (credit)

Cash $1,469 (debit)

Accounts Receivable $1,469 (credit)

Dividends $800 (debit)

Cash $800 (credit)

5 0

3 years ago

A company can choose to use FIFO inventory costing methods for the financial statement and can elect to use either LIFO or FIFO

Oduvanchick [21]

Answer:

A. True.

Explanation:

Companies can and often do use different costing methods for financial reporting and tax reporting. The only exception is when LIFO is used for tax reporting; in this case the IRS requires that it also be used in financial statements.

LIFO assigns the highest amount to cost of goods sold - yielding the lowest gross profits and net income , which also yields a temporary tax advantage by postponing payment of some income tax.

8 0

3 years ago