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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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Evan Company reports net income of $140,000 each year and declares an annual cash dividend of $50,000. The company holds net ass
Taya2010 [7]

Answer:

$708,000

Explanation:

The computation of Investment in Evan Company balance is shown below:-

Purchase of Evan stock = $600,000

Book Value of Evan Stock = Net assets - Given percentage

= $1,200,000 x 40%

= $480,000

Goodwill = Purchase of Evan stock - Book Value of Evan Stock

= $600,000 - $480,000

= $120,000

Life of Goodwill is Indefinite

Annual Amortization is Zero

Cost = $600,000

Income Accrued 2017 = Net income × Given percentage

= $140,000 x 40%

= $56,000

Dividend 2017 = Cash dividend × Given percentage

= $50,000 x 40%

= $20,000

Income Accrued 2018

= $140,000 x 40%

= $56,000

Dividend 2018

$50,000 x 40%

= $20,000

Income Accrued 2019

= $140,000 x 40%

= $56,000

Dividend 2019

$50,000 x 40%

= $20,000

Equals Investment in Evan, 31/12/2019 = Purchase of Evan stock + Income Accrued 2017 - Dividend 2017 + Income Accrued 2018 - Dividend 2018 + Income Accrued 2019 - Dividend 2019

= $600,000  + $56,000 - 20,000 + 56,000 - 20,000 + 56,000 - 20,000

= $708,000

7 0
2 years ago
Consider a multifactor model with two factors. A well-diversified portfolio (Portfolio P) has a beta of 0.75 on factor 1 and a b
PolarNik [594]

Answer: 16.5%

Explanation:

Expected Return on portfolio P will be calculated as:

= Rf + (Beta1 × F1) + (Beta2 × F2)

where,

Rf = Risk Free rate

F1 = risk premium on Factor1

F2 = risk premium on Factor2

Expected Return will now be:

= 7% + (0.75 × 1%) + (1.25 × 7%)

= 7% + 0.75% + 8.75%

= 16.5%

The expected return on portfolio P, according to a two-factor model will be 16.5%.

8 0
3 years ago
Read 2 more answers
The first step of the financial planning process is to:
yulyashka [42]

Answer:

Review Of Current Financial Situation

Explanation:

The first step in the financial planning process involves taking a detailed look into a person's current financial situation. This means examining a person's savings, income, debts and current living expenses.

7 0
3 years ago
Read 2 more answers
The next dividend payment by Dizzle, Inc., will be $2.85 per share. The dividends are anticipated to maintain a growth rate of 5
devlian [24]

Answer:

10.78%

Explanation:

The next dividend payment for Dizzle incorporation is $2.85

The growth rate is 5%

Current stock price is $49.30

Therefore the required return can be calculated as follows

= dividend payment/stock price + growth rate

= 2.85/49.30 + 5/100

= 0.0578 + 0.05

= 0.1078 × 100

= 10.78%

3 0
3 years ago
Read 2 more answers
Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1 of the current year, Trueman Corporation i
MatroZZZ [7]

Answer:

a) the issue price of the bonds was $554,861:

PV of face value = $600,000 / (1 + 6%)⁴⁰ = $58,333

PV of coupon payments = $33,000 x 15.046 (PV annuity factor, 6%, 40 periods) = $496,518

market price = $554,851 which is close enough to verify the issue price (the $10 difference is probably due to a rounding error).

b) the journal entries are:

January 1, year 1

Dr Cash 554,861

Dr Discount on bonds payable 45,139

    Cr Bonds payable 600,000

June 30, year 1

Dr Interest expense 33,292

    Cr Cash 33,000

    Cr Discount on bonds payable 292

amortization of discount of bonds payable = ($554,861 x 6%) - $33,000 = $291.66 ≈ $292

December 31, year 1

Dr Interest expense 33,309

    Cr Cash 33,000

    Cr Discount on bonds payable 309

amortization of discount of bonds payable = ($555,153 x 6%) - $33,000 = $309.18 ≈ $309

Assets                   =         Liabilities                                     +   Equity

Cash                         Bonds payable    Discount on BP

554,861                    600,000               (45,139)

(33,000)                                                 292                            (33,292)

(33,000)                                                 309                            (33,309)

Revenues      -          Expenses           =       Net income

0                                0                                  0

0                                33,292                         (33,292)

0                                33,309                         (33,309)

7 0
3 years ago
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