Answer:
The answer is: $215,000
Explanation:
Railway Company should include the goods worth $35,000 that Rogers Consignment store has. Once this amount is included, the total inventory for Railway Company should be $215,000 ($180,000 + $35,000).
Merchandise purchased and shipped as FOB destination, belongs to the seller until it has been properly delivered to the buyer. It will increase the inventory once it arrives on January 3.
Answer:
No, because the second method has lower total costs of production.
Explanation:
In a bid to make profits businesses must always compare different processes and choose the cheapest one.
This will eventually reflect in the profitability of the business.
In this instance let's get the cost of each process.
Fabric costs $110 a bolt and labor costs $20 an hour.
The first dress maker can sew 400 garments with 100 bolts of fabric and 1,500 hours of labour
Total cost = (100 bolts * 110) + (1500 * 20)
Total cost = $41,000
For the second dress maker he can sew 400 garments with 150 bolts of fabric and 1,000 hours of identical labour
Total cost = (150 *110) + (1000 * 20)
Total cost = $36,500
As can be seen the second dressmaker has a lower cost of production so he is more efficient than the first dress maker
Answer: A.exceed units sold
Explanation:
In Absorption Costing, All costs be it Fixed or Variable that are directly related to production are considered when computing the Cost of Production.
Under Variable Costs however, only variable Costs are considered for the computing of Cost of Production.
This difference in consideration of costs under each method leads to difference in income determination under each method.
Under Absorption Costing, fixed manufacturing costs are apportioned on produced units and the costs are only recovered when the units are sold but under variable costing, fixed manufacturing costs are treated as period costs and are therefore charged to the Income statement.
This means that, the amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured exceed units sold.
The best thing that I can do is to work in my task while giving instructions to my co worker on what to do in regard to the thing he or she needs help on. The least thing I can do is not to help someone who is in need as I know in the future I may need one's help too.
Answer:
$160 overapplied
Explanation:
Icy Mocha company estimates it's factory overhead costs to be $35,000 and machine hours to be 5,000 for a period of one year.
The actual number of hours worked on job 333 and 334 equals a total of 4,980
The actual factory overhead costs are $34,700
The first step is to calculate the predetermined overhead rate
= Overhead costs/machine hours
= $35,000/5,000
= $7
The amount of either over or underapplied factory costs can be calculated as follows
= predetermined overhead rate×actual number of hours worked
= $7×4,980
= $34,860
The amount is then subtracted from the actual overhead costs
= $34,700-$34860
= -$160
= $160 overapplied
Hence the amount of overapplied factory overhead is $160
