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shtirl [24]
3 years ago
6

The following information is available for a company's utility cost for operating its machines over the last four months. Month

Machine hours Utility cost January 940 $ 5,490 February 1,840 $ 6,980 March 2,480 $ 8,100 April 640 $ 3,900 Using the high-low method, the estimated variable cost per machine hour for utilities is:
Business
1 answer:
andreev551 [17]3 years ago
3 0

Answer:

Variable cost per unit= $2.28

Explanation:

Giving the following information:

January 940 $ 5,490

February 1,840 $ 6,980

March 2,480 $ 8,100

April 640 $ 3,900

<u>To calculate the variable cost per machine hour under the high-low method, we need to use the following formula:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (8,100 - 3,900) / (2,480 - 640)

Variable cost per unit= $2.28

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Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $560,000, and factory payro
melisa1 [442]

Answer:

Marcelino Co.

1. Assignment of underapplied or overapplied overhead to the Cost of Goods Sold account:

a. Materials purchases (on credit) = $560,000

b. Direct materials used in production = $450,000

c. Direct labor paid and assigned to Work in Process Inventory =  $359,000

d. Indirect labor paid and assigned to Factory Overhead = $23,000

e. Overhead costs applied to Work in Process Inventory = $179,500

f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) = $196,000

g. Transfer of Jobs 306 and 307 to Finished Goods Inventory = $844,000

h. Cost of goods sold for Job 306 = $350,500

i. Revenue from the sale of Job 306 = $655,000

j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) = $16,500

2. Journal Entries:

Debit Cost of Goods Sold $16,500

Credit Manufacturing Overhead $16,500

To assign underapplied overhead to the cost of goods sold.

Journal Entries to record April Transactions:

a. Debit Raw materials inventory $560,000

   Credit Accounts payable $560,000

To record the purchase of raw materials on account.

b. Debit Work in process inventory $450,000

   Credit Raw materials inventory $450,000

To record the materials used in production.

c. Debit Work in process inventory $359,000

  Credit Cash 359,000

To record payment for direct labor costs.

d. Debit Factory overhead $23,000

  Credit Cash $23,000

To record payment for indirect labor costs.

e. Debit Work in process inventory $179,500

   Credit Factory overhead $179,500

To record overhead assigned to WIP.

f(1). Debit Factory overhead $54,000

      Credit Raw materials inventory $54,000

To record indirect materials used in production.

f(2). Debit Factory overhead $24,000

      Credit Cash $24,000

To record payment for factory utilities.

f(3). Debit Factory overhead $56,000

      Credit Accumulated depreciation-factory equipment $56,000

To record factory equipment depreciation.

f(4). Debit Factory overhead $39,000

      Credit Cash $39,000

To record payment for factory rent.

g. Debit Finished Goods Inventory $844,000

   Credit Work in process inventory $844,000

To record the transfer of Jobs 306 and 307 to Finished Goods Inventory.

h. Debit Cost of goods sold $350,500

   Credit Finished goods inventory $350,500

To record the cost of Job 306 sold.

 

i.  Debit Cash $655,000

   Credit Sales Revenue $655,000

To record the sale of Job 306.

j. Debit Cost of goods sold  $16,500

  Credit Factory overhead $16,500

To assign the underapplied overhead.

Explanation:

a) Data and Calculations:

March 31 Inventory of raw materials = $90,000

Raw materials purchases in April = $560,000

Factory payroll cost in April = $368,000

Overhead costs incurred in April:

Indirect materials,                           $54,000

Indirect labor,                                  $23,000

Factory rent,                                   $39,000

Factory utilities,                              $24,000

Factory equipment depreciation, $56,000

Total overhead costs                  $196,000

Predetermined overhead rate = 50% of direct labor costs

Sale of Job 306 = $655,000

Cost Sheet:

                                             Job 306      Job 307        Job 308

Balances on March 31

Direct materials                     $31,000      $37,000       $68,000

Direct labor                              21,000         18,000         39,000

Applied overhead                   10,500          9,000          19,500

Beginning work in process $62,500     $64,000      $126,500   $253,000                        

Costs during April

Direct materials                   135,000      200,000        $115,000    450,000

Direct labor                         102,000        153,000         104,000    359,000

Applied overhead                 51,000         76,500          52,000      179,500

Total cost of production $350,500     $493,500     $397,500  $1,241,500

Status on April 30   Finished (sold)  Finished (unsold)  In process  Total

Underapplied or Overapplied Overhead:

Actual overhead costs = $196,000

Overhead assigned =        179,500

Underapplied overhead   $16,500

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2 years ago
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Answer:

Explanation:

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b. Accuracy - Clerks at Fairmont Corp. enter customer orders into PCs connected to the accounting system. The clerks are supposed to enter a code into a field to indicate if the order was mailed, faxed, or phoned in. But they do not always enter this code. Consequently, data on the recorded orders regarding the type of order is not reliable.

c. Validity - Shipments at Lasting, Inc. are entered into PCs in the shipping department office. The paperwork often gets lost between the shipping dock and the office, and some shipments do not get entered.

d. Relevance  - At Belmont, Inc., warehouse personnel write the picked quantity on the picking ticket as the goods are picked from the shelf. These clerks are not very careful, and the recorded picked quantities are often wrong.

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6 0
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algol13

Answer:

Having a wedding gown altered

Getting your hair done for a wedding

Explanation:

A service is rendered when there is no exchange of physical goods between the buyer and seller

When a wedding gown is altered and when my hair is done, there is no exchange of a physical good

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