Influential factors such as cost, price, break-even analysis, sales potential,

A job cost sheet of Sandoval Company is given below.

OLEGan [10]

Answer:

A. Direct materials-Materials requisition slips

Direct labor-Time tickets

Manufacturing overhead- Predetermined overhead rate

B. 125%

C. Total cost $7,760

Unit cost $3.104

Explanation:

1. Based on the information given the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job are :

Direct materials-Materials requisition slips

Direct labor-Time tickets

Manufacturing overhead- Predetermined overhead rate

2. Calculation to determine the predetermined manufacturing overhead rate

Predetermined overhead rate=$550/$440*100

Predetermined overhead rate=125%

Therefore the predetermined manufacturing overhead rate is 125%

3. Calculation to determine the total cost and the unit cost of the completed job

TOTAL COST

Direct Material $4, 700

($700 + $900 + $1,600 + $1,500)

Add Direct Labor $1,360

($440 + $380 + $540)

Add Manufacturing Overhead $1,700

($550 + $475 + $675)

Total Cost $7,760

UNIT COST

Unit cost= $7,760/ 2,500

Unit cost=$3.104

Therefore the total cost is $7,760 and the unit cost of the completed job is $3.104

8 0

2 years ago

Recall the components of internal control. identify the internal control weakness in this situation, and propose a way to corre

ale4655 [162]

Answer:

The internal control weakness includes:

1. The credit department receives incoming cash from the customers.

2. A credit department can pocket cash received from a customer and copies all remittance slips for the controller, then destroy the remittance slip.

3. The credit department can then write off customer's account as uncollectible, and the company will stop pursuing collection from the customers

Explanation:

To begin, it is important to understand the concept of Internal Control. Internal control can be generally understood as the procedures determined to ensure organization's objectives in efficiency and effectiveness, reliable financial reporting and compliance with existing organization's rules and regulations.

Hence, internal control is meant to strengthen the achievement of an organization's objectives. Thus, we have seen a number of weaknesses from the scenarios painted above. It must be stated that the weaknesses stem from the fact that the company receives incoming cash receipt from customers.

To avoid and prevent this, a company should have a cash go to a clocked box at the bank. With this, the weaknesses emanating from physical cash handling by the credit department will be eliminated.

Taking a critical look at the internal control procedures, it'll be observed that the policies adopted on cash receipt is one not generally in tune with best practices. Hence, to strengthen the control, a cash go to a clock box at the bank should be created to facilitate and encourage customers' deposits in the banks. Doing this will ensure the department rids of weaknesses emanating from this cash treatment, and point number 2 and 3 as stated above can be easily resolved.

6 0

3 years ago

One identical unit is purchased on each of the following three dates and at the respective costs: June 1 at $10 June 2 at $15 Ju

Tcecarenko [31]

Answer:

Sold first - June 1 at $10

Sold first - June 2 at $15

Ending inventory - July 4 at $20

Explanation:

In the FIFO Method, when the first product is acquired it is sold first or dispose of.

In the given question, one identical unit is purchased on three dates, and the company sold two units

So, the selling units would be

June 1 at $10

June 2 at $15

And, the remaining stock would be considered as an ending inventory i.e July 4 at $20

5 0

3 years ago

Read 2 more answers

Which of the following is a true statement about a marketing plan?

4vir4ik [10]

The right answer for the question that is being asked and shown above is that: " Changes to the marketing plan are acceptable, but only in the earliest stage." Marketing plans are business activities involved in accomplishing specific marketing objectives within a set time frame.

8 0

3 years ago

Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash disbursements (excluding c

WINSTONCH [101]

Answer:

Kayak Co.

Cash Budget

January February March

Cash inflows: $525,000 $400,000 $450,000

Cash outflows: ($475,000) ($350,000) ($525,000)

Monthly cash flow: $50,000 $50,000 ($75,000)

Monthly interests: ($600) ($106) $0

Initial cash balance: $30,000 $30,000 $69,294

Ending cash balance: $79,400 $79,894 ($5,706)

Required bank loan: $0 $0 $35,706

Payment of bank loan: ($49,400) ($10,600) $0

Total $30,000 $69,294 $30,000

Explanation:

Cash Receipts Cash Disbursements

January $525,000 $475,000

February $400,000 $350,000

March $450,000 $525,000

A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.

6 0

3 years ago