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3 years ago

11

In a sales contract, the passage of risk of loss from a seller to a buyer gives the buyer the right to insure the goods and the

right to recover from third parties who damage them.
a. True
b. False

1 answer:

Hatshy [7]3 years ago

4 0

A. True because you base it

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LO 4.5Why are the overhead costs first accumulated in the manufacturing overhead account instead of in the work in process inven

vivado [14]

Answer Explanation:

For the manufacturing overhead occurs during the manufacturing process but unlike wages, the actual values are unknow thus, we cannot anticipate in a guarantee amount. Hence, the cost accounting works as follows:

It will stablish a predetermined overhead rate which will be charged against WIP based on another factor which can be measure (like working hours, machine hours, among others)

Then, during the period as the actual cost occurs they will be charged into manufacturing overhead account.

At the end of the period, we will be able to determinate the actual cost and adjust COGS, WIP and FINISHED GOOD if needed to represent the actual cost of the inventory produced.

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3 years ago

Davis Company has analyzed its overhead costs and derived a general formula for their behavior: $65,000 + $14 per direct labor h

Ratling [72]

Answer:

$15.3 per direct labor hour

Explanation:

Overhead costs are those costs which are incurred for the manufacturing of the product but not directly attributable to any product / service. It can be variable or fixed.

Formula for overhead costs = $65,000 + $14 per direct labor hour

Numbers of direct labor hours = 50,000 hours

Total Cost = $65,000 x ($14 x 50,000 ) = $765,000

Over head rate per direct labor hour = Total overhead cost / Numbers of direct labor hours = $765,000 / 50,000 = $15.3 per direct labor hour

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4 years ago

Describe how the concept of competition to the economy

MaRussiya [10]

condition where different economic firms seek to obtain a share of a limited good by varying the elements of the marketing mix: price, product, promotion and place.

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3 years ago

Are the core processes that make up the value

Genrish500 [490]

Answer:

Operational processes

Production and or Service

Upper-management processes

Purchasing

Supporting processes

Marketing and Sales

Explanation:

There are many types of processes in an organisation few of them are given in the question and the answers to them are provided.

The correct answers are given as follows

The correct answer is provided after the type of process

Operational processes

Production and or Service

Upper-management processes

Purchasing

Supporting processes

Marketing and Sales

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3 years ago

Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevan

adelina 88 [10]

For 2020, the journal entry of Arizona Desert Homes (ADH) to record revenue is as follows:

2020:

Debit Accounts Receivable $2,010,000 ($3,000,000 x 67%)

Credit Construction Revenue $2,010,000

To record the revenue for 2020 based on the percentage of completion.

<h3>What is the percentage of completion method?</h3>

The percentage of completion method is used to recognize revenue for a long-term contract by computing the percentage of completion for each period based on the costs to completion.

The method is used when ADH recognizes revenue over time instead of at the end of the contract (or contract completion).

Revenue is <u>recognized over time</u> if:

Economic benefits of the provided asset are consumed by the customer as the entity performs.
The entity's performance creates or enhances an asset controlled by the customer as the asset is created or enhanced.

<h3>Data and Calculations:</h3>

Contract amount Cost: Gross profit: Contract billings:

2020 $3,000,000 $1,200,000 $800,000 $1,500,000

2021 600,000 400,000 1,500,000

<h3>Percentage of completion:</h3>

2020 = 67% ($1,200,000/$1,800,000 x 100)

2021 = 33% ($600,000/$1,800,000 x 100)

Learn more about revenue recognition at brainly.com/question/26275324

6 0

2 years ago