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4 years ago

What would be included in the entry to record actual Manufacturing Overhead costs incurred in a process department?

Business

1 answer:

stira [4]4 years ago

5 0

Answer:

debit to manufacturing overhead.

Explanation:

When a product is manufactured, some costs are associated with the production processes. These costs are indirect costs which includes but not limited to; depreciation, rent of buildings, salaries(maintenance and managers) , wages, utilities for the factory etc. Manufacturing overhead consist of all production costs except direct material and labor.

With regards to the above, when actual manufacturing overhead costs(machine maintenance, supervisor salary, factory utilities) are incurred in a given period, they are recorded as debit in the manufacturing over head account while the credit entry goes to account payable.

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Citron Mechanical Systems makes all sales on credit, with terms 1/15, n/30. During 2019, the list price (prediscount) of service

irga5000 [103]

Answer:

1. $686,000

2. $681,460

3. 679,140

Explanation:

Customers paid $454,000 (list price) of these sales within the discount period which implies that they qualified for 1% discount and cash received was 0.99 x 454,000 = $449,460

and the remaining $232,000 (list price) after the discount period. which implies that the full amount of these sales were received in cash.

1. The amount of sales Citron recorded in 2019 is the total amount of $686,000 since Citron uses the gross method of recording sales.

2. The amount of cash that Citron collected from these sales is 0.99 x 454,000 = $449,460 + $232,000 = $681,460

3. Assuming the net method was used for all sales, prepare a summary journal entry to record these sales

Net method assumes that all customers will qualify for discount which is 0.99 x 686,000 = 679,140

Dr. Account Receivable....679,140

Cr. Sales............................................679,140

and a second summary entry to record the cash collected.

Dr. Cash.....................679,140

Cr. Account Receivable.......679,140

4 0

4 years ago

In a perfectly competitive market, all producers sell identical goods or services. Additionally, there are many buyers and selle

V125BC [204]

Answer:

True

Explanation:

In a perfectly competitive market, all producers sell identical goods or services. Additionally, there are many buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price takers. Market price is set by the forces of demand and supply.

If the seller attempts to set his own price and sets it above the market price, the seller would lose all its customers and make zero sales.

If the seller attempts to set his own price and sets it below the market price, the seller would make losses .

I hope my answer helps you.

7 0

4 years ago

When a firm prepares financial reports by using absorption costing,

Yanka [14]

When a firm prepares financial reports by using absorption costing, <span>profits may decrease with increased sales even if there is no change in selling prices and costs. When you absorb costs that means all of the manufacturing costs are absurd by the units produced. The final cost of the inventory will include direct matters, labor and both variable and fixed overhead to product the units. </span>

8 0

3 years ago

What is bootstrapping technique 1 buying as much as u can 2 leasing as much as u can

RUDIKE [14]

Answer:

2. Lease as much as you can.

Explanation:

The term 'bootstrapping' can be defined as a process used by entrepreneurs to bringing in use their own assets as the capital resource. These resources can include personal savings, personal property area, etc. An enterprenuer can use these resources to ensure positive cash flow.

The most common way of bootstrapping is to lease your resources. One can lease his/her resources as much as one can under bootstrapping technique.

Therefore, option 2 is correct.

3 0

3 years ago

A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $15,800 eac

nalin [4]

Answer:

The financial service requires a total payment of $94,800, distributed in 6 annual payments of $15,800. Once said amount has been paid, the company invests said money and after the course of 6 years, pays 4 annual payments of $35,000, that is, a total payment of $140,000. In this way, after 10 years of the first payment by the client, this operation ends with a monetary gain on the part of the client of $45,200 (140,000 - 94,800).

Now, to know how much interest is being offered by this investment, we must perform the following cross multiplication:

94,800 = 100

45,200 = X

(45,200 x 100) / 94,800 = X

4,520,000 / 94,800 = X

47.67 = X

As we can see, this operation offers a return of 47.67% in interests.

3 0

3 years ago

What would be included in the entry to record actual Manufacturing Overhead costs incurred in a process​ department?

What would be included in the entry to record actual Manufacturing Overhead costs incurred in a process department?