All categories

3 years ago

Entries for Direct Labor and Factory Overhead

Business

1 answer:

iren2701 [21]3 years ago

7 0

Answer and Explanation:

The journal entries are shown below:

Work in process inventory ($4,640 + $5,510 + $6,612 + $12,760 + $18,270) $47,792

Factory Overhead $12,500

Factory Wages $60,292

(being the factory labor cost is recorded)

Work in process inventory ($47,792 ÷ 29 × 23) $37,904

To Factory Overhead $37,904

(being the factory overhead applied to production is recorded)

You might be interested in

The primary purpose of managerial accounting is to prepare financial statements in accordance with a reporting framework (e.g. G

Contact [7]

Answer:

False.

Explanation:

There is no specific rule for managerial accounting like GAAP. GAAP is the accounting principles set for financial accounting and not managerial accounting. The main and primary purpose of managerial accounting is to help the managers of an organization to analyze the exact cost that is incurred in the production of sale-able goods and services. This accounting is done completely as per the convenience and discretion of the managers of a company and not by any specified rules and norms.

3 0

3 years ago

Regardless of the objective of an advertising campaign, each campaign's objectives must be:

andrew11 [14]

E) specific and measurable

8 0

3 years ago

The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,470,000, $154,000 in the common stock account

devlian [24]

Answer:

The cash flow to creditors during 2014 was $139000,the amount by which net working capital investment has reduced.

The stockholders invested $241,000 more into the business

The net cash flows from asset is the $1,100,000 net firm's capital spending

Lastly,the operating cash flow is $240,000 as calculated below

Explanation:

Net working capital investment denotes the amount of cash the company parted with in 2014 in financing its current obligations.

Stockholders as the owners of the company made more cash available to the company in 2014 by investing more cash resources in it as follows:

Common stock account increased by $10000($164000-$154000)

Additional paid-in surplus increased by $300000($3090000-$2790000)

The gives $400000 cash from stockholders minus dividends of $159000

Operating cash flow

Net income $0

add interest $101000

Reduction in net working capital $139000

Operating cash flow $240000

6 0

3 years ago

Paragraph Styles Rolling Coast Inc. issued BBB bonds two years ago. These bonds provided a yield to maturity (YTM) of 11.5 perce

Karo-lina-s [1.5K]

Answer:

Explanation:

The risk premium two years back = 11.5 - 8.7 = 2.8 %

current risk premium = 2.8/2 = 1.4%

Current risk free bond yields 7.8 %

So Rolling Coast expected rate of interest on bonds = 7.8 + 1.4

= 9.2 %

5 0

3 years ago

assume that monty completed the office and warehouse building on december 31, 2020, as planned at a total cost of $7,280,000, an

Eva8 [605]

Answer:

AI = $1,424,864

Hence, the avoidable interest for the Monty's project is $1,424,864.

Explanation:

Note: This question is incomplete and lacks necessary data to answer this question. But I have found similar question on the internet and will be using its data in this question to answer for the sack of concept and understanding. Thank you!

Data Given:

Total Cost = $7,280,000

Weighted-Average amount = $5,040,000

We need to compute the avoidable interest on this project.

Data Missing:

Construction loan amount = $2,800,000

Construction loan Interest Rate = 12%

Construction loan Time period = Semi-Annually.

Construction loan Issued = 31 Dec, 2019

Short-term loan amount = $1,960,000

Short-term loan interest 10%

Short-term loan Time period = Monthly payable

Short-term loan Maturity period = 30 May, 2021

Long-term loan amount = $1,400,000

Long-term loan interest rate = 11%

Long-term loan Time period = Annually on 1st January

Long-term loan Principal Payable = 1 Jan, 2024

Solution:

Now, this question is complete and can be solved.

First of all, we need to calculate the general borrowings in construction of the building.

Let X be the general borrowings in construction of the building.

Let Y be Weighted average

Let Z be the Construction for whole year

Where, Y = $5,040,000

Z = $2,800,000

So,

X = Y - Z

X = $5,040,000 - $2,800,000

X = $2,240,000 (This is the general borrowings)

Now, we have to calculate the weighted average interest rate in order to calculate the avoidable interest on this project.

Weighted average interest rate = (Short term loan interest rate x short term loan amount divided by Sum of total loan including short and long) + (long term load interest rate x long term loan amount divided by the sum of total loan)

Let A be the Weighted average interest rate.

So,

A = (10 * $1,960,000/($1,960,000 + $1,400,0000) + ($11% * $1,400,000/($1,960,000 + $1,400,0000) )

A = 48.61%

Now, we just have to put in the values to find out the avoidable interest.

Let Avoidable interest = AI

AI = ($2,800,000 x 0.12) + ($2,240,000 x 0.4861)

AI = $1,424,864

Hence, the avoidable interest for the Monty's project is $1,424,864.

7 0

3 years ago