Out of all colors which two go together

On January 1, Year 3, a company changed its inventory costing method from LIFO to FIFO. The company’s Year 3 financial statement

kherson [118]

Answer:

The result generated by the method change must be expressed within the income statement as an extraordinary result.

And within the statement of financial situation, a note must be included where the change of method is reported and what the valuation of the inventory would have been if the method had not been changed.

7 0

3 years ago

Eucalyptus Company has the following budgeted variable costs per unit produced: Direct materials $0.35 Direct labor $0.28 Variab

Igoryamba

Answer:

The cost of production at the activity level of 2,200,000 units is $1,913,000

Explanation:

Total budgeted variable costs per unit

= Direct materials + Direct labor + Variable overhead

= $0.35 + $0.28 + ($0.04 + $0.09 + $0.03)

= $0.35 + $0.28 + $0.16

= $0.79

Cost of Production

= Total Variable costs + Total Fixed costs

= (Units produced*Variable costs per unit) + (Rent + Depreciation)

= (2,200,000*$.79) + ($25,000 + $150,000)

= $1,738,000 + $175,000

= $1,913,000

Therefore, The cost of production at the activity level of 2,200,000 units is $1,913,000

7 0

3 years ago

General Electric employs a job order cost accounting system and keeps perpetual inventory records. The following transactions oc

nalin [4]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Direct labor incurred and charged to jobs during the month was:

Job 101 $32,000

Job 103 20,000

Manufacturing overhead was applied to jobs using a predetermined overhead rate based on 75% of direct labor costs.

To apply overhead, we need to use the estimated overhead rate and the actual direct labor cost:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Job 103= 0.75*20,000= $15,000

Job 101= 0.75*32,000= $24,000

Direct materials requisitioned during the month:

Job 101 $20,000

Job 103 24,000

Job 101 consists of 1,000 units and, Job 103 consists of 200 units.

First, we need to calculate the total cost and then the unitary cost:

Total cost= direct material + direct labor + allocated overhead

Job 101:

TC= 20,000 + 32,000 + 24,000= $76,000

Unitary cost= 76,000/1,000= $76

Job 103:

TC= 24,000 + 20,000 + 15,000= $59,000

Unitary cost= 59,000/200= $295

3 0

3 years ago

Wendell’s Donut Shoppe is investigating the purchase of a new $47,300 donut-making machine. The new machine would permit the com

UNO [17]

Answer:

COnsider the following calculations

Explanation:

1. $

Annual Savings in Part-time help 6300

Added Contribution Margin from expanded sales 2600x1.50 3900

Annual Cash Inflows 10200

2.

NPV @ 5%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [10200x 5.076] - 47300

= $4475

NPV @ 10%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [10200x4.355] - 47300

= -$2779

Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates

= 5 + [4475 / (4475+2779)] x 5

= 8%

3. NPV @ 5%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [(10200x 4.355) + (12000x0.564)] - 47300

= $3889

NPV @ 15%

= [(10200x 3.784) + (12000x0.432)] - 47300

= -$3519

Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates

= 10 + [3889 / (3889+3519)] x 5

= 13%

4 0

3 years ago

EB10.

Mrrafil [7]

Answer:

Debit Credit

Work in process inventory $15,000

Manufacturing overhead clearing account $15,000

Explanation:

First determine the amount of applied overhead which can be calculated as follows

Applied overhead=Rate per machine hour*number of hours

Applied overhead=$5*3,000=$15,000

The journal entry for the applied overhead shall be made as follow

Debit Credit

Work in process inventory $15,000

Manufacturing overheads clearing account $15,000

8 0

3 years ago

Out of all colors which two go together​

Out of all colors which two go together