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inna [77]
2 years ago
6

Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting informa

tion remained in the office files: Cost of goods sold $ 92,750 Work in process inventory, January 1, 2016 23,600 Work in process inventory, December 31, 2016 18,750 Selling and Administrative Expenses 22,800 Net Income 38,500 Factory overhead 22,550 Direct materials inventory, January 1, 2016 29,400 Direct materials inventory, December 31, 2016 16,125 Cost of goods manufactured 112,450 Finished goods inventory, January 1, 2016 38,225 Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to report to him by the end of tomorrow. What should be the amount of direct materials used?
Business
1 answer:
defon2 years ago
3 0

Answer:

$28,675 = direct materials used

Explanation:

<u>To calculate the direct material used, we need to use the following formula:</u>

Cost of goods manufactured= beginning WIP + direct materials used + direct labor + allocated manufacturing overhead - Ending WIP

112,450= 23,600 + direct materials used + (22,550*2.5) + 22,550 - 18,750

112,450 - 23,600 - 56,375 - 22,550 + 18,750 = direct materials used

$28,675 = direct materials used

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What are the two advantages and two disadvantages in breakevean analysis​
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Answer:

Look at the explanation

Explanation:

<u>Advantages:</u>

1. Measure profit and losses at different levels of production and sales.

2. Predict the effect of cost and efficiency changes on profitability.

<u>Disadvantages:</u>

1. Assumes that sales prices are constant at all levels of output

2. Break even charts may be time consuming to prepare.

Hope this helps! :)

3 0
2 years ago
Why is the cost of goods sold account part of a trading business only? The cost of goods sold account is part of a trading busin
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COGS is sometimes referred to as cost of sales and refers to the production costs for products manufactured and sold or purchased and re-sold by the company. These costs are an expense of the business, and they reduce the revenue the company makes from selling its products.

For example, say your business assembles a completed widget from various inventory parts and sells it online for $15. The parts of the widget and the direct labor required to assemble them cost $10.

The $10 cost is deducted from the widget's sale price to determine the gross profit it generates, and the taxes on that profit. The IRS allows you to include a variety of costs in this calculation.  

Cost of goods sold is determined annually by showing changes in the company's balance of "goods" or inventory, from the beginning to the end of the company's fiscal (financial) year, and it is included in the company's income statement. The income statement information is included on the business tax return and used to calculate adjusted gross income as well as net income for tax purposes.

What's Included in Cost of Goods Sold

Cost of goods sold includes the direct cost of producing the product or the wholesale price of goods resold and the direct labor costs to produce the product. Specifically, it can include:

Cost of raw materials.

Cost of items purchased for resale.

Cost of parts used to construct a product.

COGS also includes other direct costs such as labor to produce the product, supplies used in manufacture or sale, shipping costs, costs of containers, freight in, and overhead costs directly related to the manufacture or production activity (like rent and utilities for the manufacturing facility).

Finally, COGS includes indirect costs such as distribution costs and sales force costs that are also directly related to the products the company sells.


8 0
3 years ago
Carla Heinz is a portfolio manager for Deutsche Bank. She is considering two alternative investments of EUR10,000,000. Either sh
astraxan [27]

Answer:

The euro return to investing directly in euros is 180 5% 10% 360   = ×  ÷   , so the euros available in 180 days is EUR10,000,000 × 1.05 = EUR10,500,000. Alternatively, the EUR10,000,000 can be converted into Swiss francs at the spot rate of EUR1.1960/CHF. The Swiss francs purchased would equal EUR10,000,000 / EUR1.1960/CHF = CHF8,361,204. This amount of Swiss francs can be invested to provide a 180 4% 8% 360   = ×  ÷   return over the next 180 days. Hence, interest plus principal on the Swiss francs is CHF8,361,204 × 1.04 = CHF8,695,652. If we sell this amount of Swiss francs forward for euros at the 180-day forward rate of EUR1.2024/CHF, we get a euro

Subscribe to unlock

return of CHF8,695,652 ×EUR1.2024/CHF = EUR10,455,652. This is less than the return from investing directly in euros.If these were the actual market prices, you should expect investors to do covered interest arbitrages. Investors would borrow Swiss francs, which would tend to drive the CHF interest rate up; they would sell the Swiss francs for euros in the spot foreign exchange market, which would tend to lower the spot rate of EUR/CHF; they would deposit euros.

Explanation:

6 0
3 years ago
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $430,000; Allowance for Doubtful Ac
denpristay [2]

Answer:

1. Determine the amount of the adjusting entry for uncollectible accounts. $850

Dr Bad debt expense 850

    Cr Allowance for doubtful accounts 850

2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.

  • accounts receivable $430,000
  • allowance for doubtful accounts $4,850
  • bad debt expense $4,850

3. Determine the net realizable value of accounts receivable.

  • $430,000 - $4,850 = $425,150

Explanation:

accounts receivable balance $430,000

allowance for doubtful accounts balance $4,000

total sales for the year $1,940,000

total bad debt expense = 0.25% x $1,940,000 = $4,850

adjusting entry = $4,850 - $4,000 = $850

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