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3 years ago

7

London Company hired some students to help count inventory during their semester break. Unfortunately, the students added incorr

ectly and the 2019 ending inventory was overstated by $5,000. What would be the effect of this error in ending inventory

1 answer:

Natalija [7]3 years ago

5 0

They have to recount each thing

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The process of joint decision making in which employees share a high degree of decision-making power with their superiors is cal

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Answer:

The process of joint decision making in which employees share a high degree of decision-making power with their superiors is called Participative Management

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3 years ago

Production Budget

Yakvenalex [24]

Answer:

Stillwater Designs

<u>Production Budget for S12L7 </u>

For the Year Ended December 31, 20X1

1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.

Sales 1,120 3,080 7,840 6,440

Desired ending inventory 616 1,568 1,228 252

Total needs 1,736 4,648 9,068 6,692

Less: Beginning inventory (340) (616) (1,568) (1,228)

Units produced 1,396 4,032 7,500 5,464

Stillwater Designs

<u>Production Budget for S12L5 </u>

For the Year Ended December 31, 20X1

1,680

1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.

Sales 1,820 1,960 7,420 5,460

Desired ending inventory 588 2,220 1,638 504

Total needs 2,408 4,180 9,058 5,964

Less: Beginning inventory (170) (588) (2,220) (1,638)

Units produced 2,238 3,592 6,838 4,326

Explanation:

Production Budget shows the quantities of finished goods that must be produced to meet expected sells plus any increase of inventory levels that might be required.

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3 years ago

(Consider This) In the middle ages, the French government auctioned off monopoly rights to the sale of salt. Economic theory pre

ollegr [7]

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3 years ago

Starr Company reports the following information for August. Raw materials purchased on account $ 76,200 Direct materials used in

il63 [147K]

Answer:

1. Raw materials purchased.

Raw Materials Account $ 76,200 (debit)

Account Payable $ 76,200 (credit)

2. Direct materials used in production.

Work In Progress Account $48,000 (debit)

Raw Materials Account $48,000 (credit)

3. Direct labor used in production.

Work In Progress Account $15,350 (debit)

Wages and Salaries $15,350 (credit)

4. Applied overhead.

Work In Progress Account $18,360 (debit)

Manufacturing Overhead Account $18,360 (credit)

Explanation:

1. Raw materials purchased.

Raw Materials Account $ 76,200 (debit)

Account Payable $ 76,200 (credit)

Recognise the Assets of Raw Materials and a Liability - Account Receivable

2. Direct materials used in production.

Work In Progress Account $48,000 (debit)

Raw Materials Account $48,000 (credit)

De-recognise the Raw Materials used in production and recognise the cost in Work In Progress Account

3. Direct labor used in production.

Work In Progress Account $15,350 (debit)

Wages and Salaries $15,350 (credit)

Recognise the labor cost in Work In Progress Account and de-recognise the Wages and Salaries Account with the amount applied to production

4. Applied overhead.

Work In Progress Account $18,360 (debit)

Manufacturing Overhead Account $18,360 (credit)

De-recognise the Manufacturing Overheads used in production and recognise the cost in Work In Progress Account

4 0

3 years ago

Kieso Company borrowed $740,000 for three months. The annual interest rate on the loan was 9%. Kieso's fiscal year ends on Decem

Lunna [17]

Answer:

Last Fiscal Year:

Interest Expense = $5550

Current Fiscal Year:

Interest Expense = $11100

Explanation:

According to the accrual basis of accounting, the expenses and revenues relating to a certain period should be recorded in that particular period whether of not they have been received. The fiscal year of Kieso ends on 31 December and as the loan was taken one month prior to the start of the current fiscal year, it was taken at the start of December of last fiscal year.

This means that the interest expense on loan relating to last December will be charged to the last fiscal year and the interest expense relating to January and February will be charged to the current fiscal year. The interest expense amount will be calculated as follows,

Last Fiscal Year = 740000 * 9% * 1/12 => $5550

Current Fiscal Year = 740000 * 9% * 2/12 => $11100

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2 years ago