All categories

2 years ago

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

Business

1 answer:

Maksim231197 [3]2 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.

You might be interested in

Why Do Organizations not change in response to environmental pressures?

Elina [12.6K]

Answer:

It often proves difficult to actually realize the change that you have come up with. Especially when it comes to cultural or behavioral change. We want to show that change is not so much something that you have to get others to join. You have to make your change part of it

3 0

2 years ago

Journalize the adjusting entries from the adjustments columns of the worksheet. (Credit account titles are automatically indente

Crazy boy [7]

Answer:

The following are the adjusting entries and the amounts entered are supposed and imaginary.

Explanation:

Date Account Titles and Explanation Debit Credit

Mar. 31 Supplies Expense Dr 10,000

Supplies Account Cr 10,000

When supplies are expensed out. If supplies have a balance of 30000 and 10000 is used up.

Mar. 31 Depreciation Expense Dr 5000

Accumulated Depreciation Cr 5000

Depreciation expense amounts to 5000 for the current year

Mar. 31 Unearned Service Revenue Dr 3000

Service Revenue Cr 3000

Unearned Service Revenue is a liability of the person or company.

Mar 31. Salaries and Wages Expenses Dr 2000

Cash Cr 2000

Slaries and wages paid in full by cash to 2000

6 0

3 years ago

Joe operates a business that locates and purchases specialized assets for clients, among other activities. Joe uses the accrual

babunello [35]

Answer: Please refer to Explanation

Explanation:

a. No Effect on Taxable Income.

First off Joe's income is only dependent on if the test is successful. Even if it were, the test would only be conducted in year 1 March not in year 0 which is the focus of this question. Taxes are only paid when cash is received.

b. No Effect on Taxable Income.

Had there been a business discussion, Joe would have been able to claim a 50% deduction in Tax. However since there was none, there is no effect on Tax.

c. No effect on Taxable Income

The insurance is not tax deductible.

d. $12,750 in taxable income.

Even Joe believes that $2,750 of income might not be collected, he cannot deduct this from taxes until it actually happens therefore his increase in income is $12,750.

e. $2,250 reduction in taxable income

The $6,750 was paid for 3 months. Joe uses Accrual accounting however meaning that expenses have to be recorded for the period they are incurred. $2,250 was incurred for December and so that is the amount that will be deducted as an expense for the year.

f. $1,600 reduction in Taxable income.

If the representative brings back receipts that are in order, Joe can be able to reimburse her for $1,600 in expenses. This includes $550 for airfare, $600 for lodging and for food and entertainment, the maximum he can claim as deductible in tax is 50% of each which means $250 for meals and $200 for entertainment. Adding all that up will give $1,600.

g. $139.15 reduction in Taxable income

Joe drove 96 miles to and fro the factory to his house. This is not tax deductible and considered personal. He however drove 245 miles visiting company sites. This is tax deductible.

The standard rate for 2020 according to the IRS is 57.5 cents per mile so 245 * 57.5 cents per mile will give $139.15.

h. $345 reduction in taxable income

Joe spent $175 to attend to symposium. He also paid $95 in taxi fare to get to the symposium. He ate meals worth $150 during the symposium not which 50% is deductible. 50% being $75. Adding all these together is,

= 175 + 95 + 75

= $345.

This is the taxable reduction.

3 0

3 years ago

What is pure competition?

liubo4ka [24]

It is the third one

5 0

3 years ago

Read 2 more answers

When an investigation shows that ill people have something in common to explain why they all got the same illness, the group of

FromTheMoon [43]

Answer:

Outbreak

Explanation:

Outbreak has been defined as the sudden increase in occurence of a particular disease in a specific period of time and at a specific place. When people have something in common to explain why they all got thesame illness, it is called an outbreak. Any disease becomes an outbreak when it occurs in greater numbers than expected for a given region or community during a specified period of time or season.

7 0

3 years ago