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3 years ago

Conversion cost per equivalent unit is the combined costs of direct materials and factory overhead.

Business

1 answer:

Maksim231197 [3]3 years ago

8 0

Answer:

False

Explanation:

Cost

This is simply defined as a payment of cash or the commitment to pay cash in the future for revenues purpose. E.g. The cash used to purchase a tractor, is the cost of the tractor.

Conversion costs

This is simply regarded as direct materials, direct labor, and factory overhead costs that can be selected together or grouped together for analysis and reporting. It consist of direct labor in factory overhead costs.

The Equation for Conversion cost is simply = Direct Labor Cost + Manufacturing Overhead Cost.

While the Equivalent Units of Production = Number of Units Transferred to the next department + Equivalent Units in Ending Works in Process Inventory.

The equation for Equivalent units of production for conversion cost is given below: Units completed and transferred out + Equivalent units in ending work in process for conversion cost.

The equation for Cost per equivalent unit for conversion cost is simply =

(conversion cost of beginning work in process + conversion cost added during the period)/ Equivalent units of production for conversion cost.

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Garcia Co. owns equipment that cost $81,600, with accumulated depreciation of $43,200. Garcia sells the equipment for cash. Reco

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Answer:

1. Cash Debit $ 47,000

Accumulated Depreciation equipment Debit $ 40,800

Gain on sale of equipment Credit $ 11,000

Equipment Credit $ 76,800

To record sale of equipment for $ 47,000 and gain on sale of $ 11,000

2. Cash Debit $ 36,000

Accumulated Depreciation equipment Debit $ 40,800

Equipment Credit $ 76,800

To record sale of equipment for $ 36,000

3. Cash Debit $ 31,000

Accumulated Depreciation equipment Debit $ 40,800

Loss on sale of equipment Debit $ 5,000

Equipment Credit $ 76,800

To record sale of equipment for $ 31,000 and loss on sale of $ 5,000

Explanation:

Computation of net book value

Cost of equipment $ 76,800

Less: Accumulated depreciation $ 40,800

Net book value $ 36,000

In first step where the equipment is sold of $ 47,000, the differential between the sale value and the net book value is the gain on sale and is credited in the accounting entry.

In the second step, where the equipment is sold for $ 36,000, the sale proceeds is exactly equal to the net book value and no gain or loss is recorded.

In the third step, the equipment is sold for $ 31,000 and the differential between the net book value and the sale proceeds is a loss and recorded as a debit in the accounting entry

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3 years ago

Meredith, Linda, and Peter are working together in a project team at a home appliances company. They had to select two out of fi

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Answer:

a) avoiding

b) accommodation

Explanation:

a) Meredith feels uncomfortable with confrontations, she chooses to remain neutral while staying away from the discussion, so it is correct to say that she used the style of avoiding conflict resolution, which occurs when individuals prefer to avoid a situation that can generate conflicts as in the case described in the matter, and so they prefer to act diplomatically avoiding confrontations and not giving opinions contrary to a given situation.

b) Linda used the accommodation style as she gave in to Peter's demands for the choice of products. In this style, the individual values the relationship with the other individual above his personal opinion, and therefore gives up on maintaining the conflict because of a situation that is less important to him than the maintenance of the relationship.

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Shannon Corporation manufactures custom cabinets for kitchens. It uses a normal costing system with two direct cost categories:

adelina 88 [10]

Answer:

please find the answers below

Explanation:

Shannon corporation:

The inventory cycle of is composed of 3 phases:

1. Ordering / purchases

2. Production

3. Finished good / sales

The ordering phase is when the company orders goods and the time it takes to receive the raw materials.

The production phase is the work in process phase when the raw materials are converted into finished goods.

The finished goods/ sales phase is the time it takes to sell the goods that were manufactured.

Journal entries in a manufacturing company are used to record transactions. Adjusting journal entries are used to recognize costs and revenues in the correct period.

Dr Work – In - process $75, 000

Cr Inventory- Direct materials $$75, 000

Recording actual direct materials used

Dr Wages Payroll $55, 500

Cr Cash /Bank $55, 500

Recording direct labor wages incurred

Dr Manufacturing overhead $3, 500

Cr Inventory- Indirect materials $3, 500

Recording the cost of indirect materials incurred

Dr Manufacturing overhead $49, 000

Cr Cash/ Bank $49, 000

Recording wages payable to supervisor and engineer

Dr Manufacturing overhead $13, 000

Cr Cash/ Bank $13, 000

Plant utilities and repairs taken to manufacturing overhead

Dr Manufacturing overhead $11, 000

Cr Accumulated depreciation – plant $11, 000

Record depreciation on factory plant

Dr Finished goods $190, 000

Cr Work – In – Process $190, 000

Record of jobs completed (cost of goods manufactured)

Dr Work – in – process $76, 500

Cr Manufacturing overhead $76, 500

Record overhead applied to production

[$3, 500 + $49, 000 + $13, 000 + $11, 000 = $76, 500]

Dr Cost of goods sold $145, 000

Cr finished goods $145, 000

Record cost of jobs or goods completed and sold

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ruslelena [56]

Answer:

e. A differential benefit

Explanation:

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