All categories

2 years ago

Kennedy Company reports the following costs and expenses in May.

Business

1 answer:

mamaluj [8]2 years ago

4 0

Answer:

a. $161,350

b. $398,050

c. $81,140

Explanation:

<u>Total amount of manufacturing overhead</u>

Factory utilities $16,500

Depreciation on factory equipment $12,650

Indirect factory labor $48,900

Indirect materials $70,800

Factory manager's salary $8,000

Property taxes on factory building $2,500

Factory repairs $2,000

Total $161,350

Note : Manufacturing Overheads are Indirect Manufacturing Costs that can not be easily traced to the Product being manufactured.

<u>The total amount of product costs</u>

Direct materials used $157,600

Direct labor $79,100

Manufacturing Overhead $161,350

Total $398,050

Note : Product Costs are Direct Manufacturing Costs that can be easily traced to the Product being manufactured.

<u>The total amount of period costs</u>

Depreciation on delivery trucks $3,800

Sales salaries $48,400

Repairs to office equipment $1,300

Advertising $23,000

Office supplies used $4,640

Total $81,140

Note : All Non Manufacturing Costs are Period Cost. Period Costs are expensed in the Income Statement.

You might be interested in

What is the difference between entrepreneurial and bureaucratic organizations?

Airida [17]

Entrepreneurs work by themselves and bureau is working with an organization

5 0

3 years ago

Read 2 more answers

Assume that product Alpha and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on Alpha and Beta. She

Yanka [14]

Answer: In order to maximize utility, Ellie should buy more of Alpha and less of Beta

Explanation: Marginal utility is the quantity of added satisfaction that a consumer enjoyed from consuming additional units of goods or services. Marginal utility is the additional satisfaction or benefit (utility) that a consumer derives from buying an additional unit of a commodity or service. However, in determining how much of an item consumers are willing to purchase marginal utility is used.

5 0

3 years ago

Which strategy encompasses a high level of interdependence of subunits for some operation decisions combined with high degrees o

DanielleElmas [232]

Operational strategy is the strategy encompasses a high level of interdependence of subunits for some operation decisions combined with high degrees of centralization for others.

<h3>What is operation strategy?</h3>

Operations strategy is the total path of company's or organization decisions making strategy which help to reshape the long-term capabilities of several operations and their contribution to the overall strategy to the growth of the firm.

Therefore, Operational strategy is the strategy encompasses a high level of interdependence of subunits for some operation decisions combined with high degrees of centralization for others.

Learn more about operational stategy below.

brainly.com/question/13850520

8 0

2 years ago

Identify the item below that would cause the trial balance to not balance.i. A $1,000 collection of an account receivable was er

VARVARA [1.3K]

Answer:

The item that would cause the trial balance to not balance is:

v. The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

Explanation:

The correct record should have been to credit the $750 in the Cash account. By this double debit entries for a transaction without a corresponding credit entry, the trial balance cannot balance as the debit side will be greater by $1,500 ($750 * 2) than the credit side. To correct the error, the Cash account will be credited with $1,500. One of the $750 cancels the earlier error while the second $750 puts the records straight.

6 0

3 years ago

In the first year of an asset's life, which of the following methods has the smallest depreciation?

Lubov Fominskaja [6]

Answer:

d. Straight-line.

Explanation:

Depreciation: Depreciation is an expense indicating a reduction in the value of fixed assets due to tear and wear, obsolescence, usage, time period, etc. It is shown on the income statement debit line. It is a non-cash item not impacting the cash balance.

In the straight-line method, the depreciation expense would be lowest in this method and it remains the same for the remaining useful life

In the double-declining method, the depreciation rate is doubled and contain the highest value

In the sum of the year digit, we sum the useful life like 5 years so we sum 5+4+3+2+1 = 15 years and divide it to the useful life i.e 5

In the composite or group, the depreciation is taken for the group, not for the individual company

3 0

3 years ago