1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Phantasy [73]
3 years ago
5

The Harleysville Manufacturing Shop produces motorcycle parts. Typically, 10 pieces out of a job lot of 1,000 parts are spoiled.

Costs are assigned at the inspection point, $50.00 per unit. Spoiled pieces may be disposed of at $10.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 2,500 good parts.Which of the following journal entries properly reflects the recording of spoiled goods?a. Materials Control $ 200Manufacturing Overhead Control $ 800Work-in-Process Control $1,000b. Materials Control $ 250Manufacturing Overhead Control $1,000Work-in-Process Control $1,250c. Work-in-Process Control $1,250Materials Control $ 250Manufacturing Overhead Control $1,000d. Manufacturing Overhead Control $1,000Materials Control $ 200Work-in-Process Control $ 800
Business
1 answer:
Murrr4er [49]3 years ago
4 0

Answer:

B

Materials Control $ 250

Manufacturing Overhead Control $1,000

              Work-in-Process Control $1,250

Explanation:

spoilage rate: 10/1000 = 0.01=1%

the job requires 2,500 goods parts

total part required (considering spoilage)

\frac{requirement}{1-spolage} =$total needs

2,500 /(1-0.01) = 2500/ 0.99 = 2525.2525 = 2525

2525-2500 = 25 spoilage part

<u>Note:</u>

in this case you may think you can simple do 2,500 x 0.01

But if the spoilage rate is high or the amount of high is, then you will have an answer different than the correct method. Stick to the formula given.

25 part x 50 = 1,250

From the work in process, we will subtract this value, we will increase the spoilage materials inventory and charge the diference as actual overhead.

b.

Materials Control $ 250

Manufacturing Overhead Control $1,000

              Work-in-Process Control $1,250

You might be interested in
In Mexico each unit of resource can produce either one professional computer or 3 computer games. Mexico has 30 units of this re
Anvisha [2.4K]

Answer:

Explanation:

From the information given:

(a)

The total production available for the professional computers at the time Mexico uses all resources for production = 30

The total production of computer games at this time = 3 × 30 = 90

Thus, from above, the production possibility curve can be seen in the image attached below.

(b)

The opportunity cost of one professional computer is three computer games. This because, for them to produce one more computer, it is required that they give up three computer games.

(c)

Yes, it is subject to Increasing.

This because the opportunity cost of 1 computer = 3 games

For two computers = 2 ×  3 games = 6 games

For three computers = 3 ×  3 games = 9 games  ... and so on.

(d)

Professional computer production is considered a Capital good.

(e)

Mexico should increase the production of professional computers because they help in more rapid economic growth.

4 0
3 years ago
If the real output is at a near maximum level, which of the following should be considered?
Natasha2012 [34]

Answer:

D. the market will fail Explanation: The output at maximum level will eventually reduce demand because the product will be over in circulation which attract a deducting in its price and demand too.

3 0
3 years ago
Did I do this finance question correctly?<br><br> (Please help asap)
katrin [286]

Answer:

kjasdhfkjsadhffjjh

Explanation:

eeeywerriwueeryy777777777777

6 0
3 years ago
Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds at par with the intent and ability to hold the bonds until the
VashaNatasha [74]

Answer:

1)

Since Bloom plans to sell the bonds, it must record the entire loss as credit loss (loss on sale of bonds)

Dr Other than temporary impairment loss 400,000

    Cr Discount on bond investment - Taylor bonds 400,000

Credits losses must be recognized as a loss in earnings in the income statement.

2)

Journal entry to record credit loss:

Dr Other than temporary impairment loss 250,000

    Cr Discount on bond investment - Taylor bonds 250,000

Journal entry to record non-credit loss:

Dr Other than temporary impairment loss 150,000

    Cr Fair value adjustment - Taylor bonds 150,000

Non-credit losses must be recognized as part of other comprehensive income/loss and must be disclosed separately than credit losses. They must be reported in the balance sheet (they lower retained earnings directly), not the income statement.

3 0
2 years ago
cash transactions involving the purchase and sale of long-term assets and current investments are classified on the statement of
ivanzaharov [21]

Answer: Investing Activities

Explanation: The investing activities lists all of the purchases and sales of long-term fixed assets, such as equipment, building, land, and the purchase of shares.

Hope this helps.

7 0
2 years ago
Other questions:
  • The economy of Elmendyn contains 3,000 $1 bills.
    15·1 answer
  • ou are bullish on Telecom stock. The current market price is $30 per share, and you have $3,000 of your own to invest. You borro
    14·1 answer
  • On january 1, 2016, concord corp. signs a contract to lease manufacturing equipment from stone inc. concord agrees to make lease
    15·1 answer
  • Which decision-making models best describe how decision-making takes place in the research and development laboratory of a major
    7·1 answer
  • Characterize the types of investments that are most vulnerable to political risk. Characterize those that are least vulnerable.
    13·1 answer
  • What is the purpose of a continuing resolution?
    12·1 answer
  • Ralph Lauren sells suits and ties. Suits sell for $1000 each, and cost $300 in variable expenses to make each. Ties sell for $10
    15·1 answer
  • After you are done taking notes from a speaker, you should _____.
    15·1 answer
  • Name two global exchange services
    9·2 answers
  • What is working capital?
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!