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dimaraw [331]
3 years ago
5

G At the end of a month, how is over or under applied overhead reported on the financial statements

Business
1 answer:
andrew-mc [135]3 years ago
4 0

Answer:

Hie your question has missing information, i tried to look it up online but i could not find it.

Here below is some explanation on the g part of your question on the treatment of over or under applied overhead on the financial statements.

At the end of the reporting period, the entity compares its actual manufacturing overhead to its applied manufacturing overhead (used in determining product cost)

<u>under- applied or over- applied</u>

If actual manufacturing overhead > applied manufacturing overhead, the overheads are under- applied.

and

If actual manufacturing overhead < applied manufacturing overhead, the overheads are over- applied.

<u>reporting on the financial statements</u>

under- applied are added to the cost of sales in the trading account. this increases the costs of sales amount.

under- applied are deducted from the cost of sales in the trading account. this decrease the costs of sales amount

<em>Alternatively,</em>

under -applied overheads are allocated to inventory balances including cost of sales and added to the total of the  balances as the end of the period.

and

over -applied overheads are allocated to inventory balances including cost of sales and deducted from the total of the balances as the end of the period.

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At the beginning of the current season on April 1, the ledger of Sandhill Pro Shop showed Cash $2,950; Inventory $3,500; and Com
MA_775_DIABLO [31]

Answer:

Sandhill Pro Shop

Journal Entries:

Apr. 5: Debit Inventory $2,500

Credit Accounts Payable (Arnie Co.) $2,500

To record the purchase of goods on account, terms 2/10, n/60.

Apr. 7: Debit Freight-in $80

Credit Cash $80

To record the payment for freight on goods.

Apr. 9: Debit Accounts Payable (Arnie Co.) $700

Credit Inventory $700

To record the return of goods on account.

Apr. 10: Debit Accounts Receivable $1,340

Credit Sales Revenue $1,340

To record the sale of goods on account, terms n/30.

Debit Cost of goods sold $920

Credit Inventory $920

To record the cost of goods sold.

Apr. 12: Debit Inventory $1,050

Credit Accounts Payable (Woods Sportswear) $1,050

To record the purchase of goods on account, terms 2/10, n/30.

Apr. 14: Debit Accounts Payable (Arnie Co.) $1,800

Credit Cash $1,764

Credit Cash Discounts $36

To record the full settlement on account.

Apr. 17: Debit Accounts Payable (Woods Sportswear) $50

Credit Inventory $50

To record the return of goods on account.

Apr. 20: Debit Accounts Receivable (Members) $910

Credit Sales Revenue $910, terms n/30.

To record the sale of goods to members.

Debit Cost of goods sold $550

Credit Inventory $550

To record the cost of goods sold.

Apr. 21: Debit Accounts Payable (Woods Sportswear) $1,000

Credit Cash $980

Credit Cash Discounts $20

To record full settlement on account.

Apr. 27: Debit Sales Allowances $70

Credit Accounts Receivable (Members) $70

To record the sales allowances granted members for improperly fit clothing.

Apr. 30: Debit Cash $1,400

Credit Accounts Receivable (Members) $1,400

To record the receipt of cash from members on account.

Explanation:

a) Data and Analysis:

Apr. 5: Inventory $2,500 Accounts Payable (Arnie Co.) $2,500, terms 2/10, n/60.

Apr. 7: Freight-in $80 Cash $80

Apr. 9: Accounts Payable (Arnie Co.) $700 Inventory $700

Apr. 10: Accounts Receivable $1,340 Sales Revenue $1,340, terms n/30.

Cost of goods sold $920 Inventory $920

Apr. 12: Inventory $1,050 Accounts Payable (Woods Sportswear) $1,050, terms 2/10, n/30.

Apr. 14: Accounts Payable (Arnie Co.) $1,800 Cash $1,764  Cash Discounts $36

Apr. 17: Accounts Payable (Woods Sportswear) $50 Inventory $50

Apr. 20: Accounts Receivable $910 Sales Revenue $910, terms n/30.

Cost of goods sold $550 Inventory $550

Apr. 21: Accounts Payable (Woods Sportswear) $1,000 Cash $980 Cash Discounts $20

Apr. 27: Sales Allowances $70 Accounts Receivable $70

Apr. 30: Cash $1,400 Accounts Receivable (Members) $1,400

3 0
3 years ago
A company headquartered in Vancouver, British Columbia, is building a pipeline in Russia. The invoice amount is due in 90 days a
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Answer:

C. Sell 28,000,000 rubles

Explanation:

By doing so, the company will <u>immediately receive</u> the amount equivalent in Canadian Dollars by selling 28 million rubles in forward and after 90 days when the invoice amount (28 million rubbles) is received from building the pipeline, will be used to netting of the forward contract.

In this way, company can hedge the currency exposure, and reduce the risk which can be generated from currency volatility.

5 0
3 years ago
An upcoming convention has secured 300 rooms at $140 per room for Friday night. The rack rate for Friday night is $250 per room
m_a_m_a [10]

Answer:

$67,000

Explanation:

The total revenue will be income from the 300 rooms and that from 100 rooms

=(300 x $140) + ($100 x 250)

=$42,000 +$25,000

=$67,000

6 0
3 years ago
Armstrong industries has a contribution margin of $300,000 and a contribution margin ratio of 30%. how much are total variable c
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Tim Cook is described as delegating responsibilities to others, empowering them, and sharing the limelight with his leadership t
hram777 [196]

Answer: respect for employees

Explanation:

The options to the question are:

a. integrity

b. respect for employees

c. emotional intelligence

d. placing culture above individual

Transformational leadership is a form of leadership whereby the leaders motivate, inspire and encourage the employees in order to achieve organizational goals and make the firm successful.

From the question, we are informed that Tim Cook is described as delegating responsibilities to others, empowering them, and sharing the limelight with his leadership team. The aspect of transformational leadership that this suggest is respect for employees.

4 0
3 years ago
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