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Fudgin [204]
2 years ago
13

Parsons Company is planning to produce 2,900 units of product in 2020. Each unit requires 2.00 pounds of materials at $7.00 per

pound and a half-hour of labor at $16.00 per hour. The overhead rate is 60% of direct labor.
(a) Compute the budgeted amounts for 2020 for direct materials to be used, direct labor, and applied overhead.
Direct materials
Direct labor
Overhead
(b) Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.)
Standard cost $
Business
1 answer:
olga55 [171]2 years ago
3 0

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the total cost of producing 2,900 units:</u>

Total cost= direct material + direct labor + allocated overhead

Total cost= (2*7)*2,900 + (0.5*16)*2,900 + [(0.5*16)*0.6]*2,900

Total cost= 40,600 + 23,200 + 13,920

Total cost= $77,720

<u>Now, the unitary standard cost:</u>

Unitary cost= total cost/number of units

Unitary cost= 77,720 / 2,900

Unitary cost= $26.8

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Answer and Explanation:

1. For computation of the non-controlling interest as at 30 June 2019 is shown below:-

Adjusted profit = Profit tax after the year - Unrealized gain in stock - Gain on machinery

= $200,000 - $10,500 - $10,500

= $179,000

Non-controlling interest as at 30 June 2019 = Share capital + Retained earning + General reserve + Profit of the year June 2019

= ($800,000 × 20%) + ($200,000 × 20%) + ($400,000 × 20%) + ($179,000 × 20%)

= $160,000 + $40,000 + $80,000 + $35,800

= $315,800

2. The Journal entries are shown below:-

a. Profit for the year Dr, $21,000

         To Stock reserves $10,500

         To Equipment reserve $10,500

(Being reserves is recorded)

Working note:

For stock reserve

Sale price $120,000

Cost $60,000

Profit before tax $60,000

Tax at 30% $18,000

Profit after tax $42,000

Unsold stock 25%

Unrealized profit $10,500

For net gain on sale of machinery

Sale price $80,000

Cost $60,000

Profit before tax $20,000

Tax at 30% $6,000

Profit after tax $14,000

Unsold stock 75% (3 years from 4 years)

Unrealized profit $10,500

b. Profit for the year Dr, $179,000

         To Consolidated reserves and surplus $35,800

          To Non controlling interest $143,200

(Being profit of expert ltd. is recorded)

Working note

Share of non controlling stakeholders = 20% × $179,000

= $35,800

Share of Giant Ltd. = 80% × $179,000

= $143,200

We do not make any adjustment with respect to consultancy fees

3 0
3 years ago
Melinda, who works in a jewelry store owned by Cindy, was picking up some gem stones for use in the store. On the way back to th
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Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $158,000 Credit sale
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Answer:

$8,870

Explanation:

Calculation to determine the balance in the allowance for doubtful accounts after bad debt expense is recorded

Using this formula

Balance in the allowance for doubtful accounts=

(Credit sales* Percentage of Credit sales)+Allowance for doubtful accounts credit balance

Let plug in the formula

Balance in the allowance for doubtful accounts= ($458,000*1.5%)+$2,000

Balance in the allowance for doubtful accounts=$6,870+$2,000

Balance in the allowance for doubtful accounts=$8,870

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6 0
2 years ago
Stock A has the following returns for various states of the economy:
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Answer:

The correct answer is b.12.7%

Explanation:

Expected return: It is used to calculate the expected value of the formula

In this question, the formula should be used which is shown below:

Expected return = Return of portfolio × Probability of portfolio

So,

For Recession, the expected return would be equal to

= -72 × 9% = -6.48%

For below average, the expected return would be equal to

= -15 × 16% = -2.4%

For average, the expected return would be equal to

= 16 × 51% = 8.16%

For above average, the expected return would be equal to

= 35 × 14% = 4.9%

For boom, the expected return would be equal to

= 85 × 10% = 8.5%

Now, do the sum of all states of the economy, so that the solution can arrive.

So, the answer would be

= -6.48% + (-2.4%) +8.16% +4.9% + 8.5%

= 12.68% round off = 12.7%

Thus, the Stock A's expected return is 12.7%

And, the correct answer is b.12.7%

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The purpose of reporting Current Maturities of Long-Term debt is to: a. report any portion of a long-term borrowing that is to b
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Answer:

Correct option is (d)

Explanation:

Current liabilities are part of obligations of the organization that it needs to meet within one year. Current maturities of long term debt represents that part of long term debt such a bonds or loans that need to be paid of in the current financial year.

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