Answer:
The statement is: False.
Explanation:
Non-manufacturing costs are those not related to the production process of the company. It implies costs useful for the operations of the firm but does not have an impact on the process of creating a final good. Administrative salaries, office supplies, and depreciation fall into this category.
Absorption costing describes an accounting approach in which all the manufacturing costs are assigned to the units produced.
Thus, as non-manufacturing costs are not related to the manufacturing process, they cannot be allocated within the units of production using the absorption costing method.
Answer:
The amount should the bank report = $ 21725
Explanation:
Entries:
3.Dr accounts payable 23375
Cr Bank 23375
4. Dr Bank 7500
Cr Account receivable 7500
5. Dr Bank 900
Cr Accounts payable 900
(Error in check)
6. Dr Bank charges 45
Cr Bank 45.
(To record bank charges)
Creative Design co
Bank Reconciliation statement
$
Balance as per bank statement as Aug -20Y6 = 37600
<u>Adjustment:</u>
Add: Deposit in transit = 7500
Less: Outstanding checks = (<u>23375</u>)
Adjusted balance <u>21725</u>.
Balance as per Cash book = 20870
Less : Bank charges = (45)
Add: Error in check = <u>900</u>
Adjusted Balance <u>21725</u>
Answer:
D. $485,030
Explanation:
Total manufacturing cost for the job = $836,250
Total number of units produced 15,000
Unit product cost $55.75
Manufacturing overhead cost applied
$221,600
Actual manufacturing overhead cost $204,880
Over applied overhead $16,720
The direct method of determining cost of goods sold
Unadjusted cost of goods sold
(9,000 units × $55.75 per unit)
$501,750
Less over applied overhead
($16,720)
Cost of goods sold $485,030
Answer:
D. Cash 8,000
Accounts Receivable 8,000
Explanation:
The commercial terms of the transactions are as follow:
2/10 within the first 10 days of the invoice The payment will be grnated with 2% discount
n/30 during the next 30 days of invoice date, the payment to cancel will be the nominal
The payment is after the discount period, it will be at nominal which is 8,000
Answer:
$64
Explanation:
The minimum acceptable transfer price for the sensors from the standpoint of the Sensor Division is a price that would be the best for the performance evaluation of the <u>Sensor Division Manager </u>and also <u>best for the company</u>.
If the division is transferring items to another division the goals remain the same and the price is calculated as :
Minimum acceptable transfer price = variable costs - internal savings + opportunity cost
Therefore,
Minimum acceptable transfer price = $20 + ( $64 - $20)
= $64
Therefore, the minimum acceptable transfer price for the sensors from the standpoint of the Sensor Division is $64 assuming that there is an opportunity cost of $44 that is ($64 - $20).
