You are creating a budger for your new business. What should you include?

applied vs. actual manufacturing overhead davis manufacturing corporation applies manufacturing overhead on the basis of 150% of

Mashcka [7]

Answer:

Subapplication of 22,500

journal entry:

WIP 4,500 debit

finished goods 2,250 debit

COGS 15,750 debit

factory overhead 22,500 credit

Explanation:

Direct Labor cost during the year:

60,000 + 30,000 + 210,000 = 300,000 direct labor

Applied overhead:

cost driver x predetermined rate

300,000 x 150% = 450,000

Actual overhead: 472,500

Subapplication of 22,500

as this is a significant amount we must adjust the WIP inventory, cost of goods sold and fnished goods inventory

to know the adjustment on each account we calcualte each account percentage:

300,000 --> 22,500

60,000 --> 60,000/300,000 x 22,500 = 4,500 endingWIP

30,000 --> 30,000/300,000 x 22,500 = 2,250 finished goods

210,000--> 210,000/300,000 x 22,500 = 15,750 COGS

we do the adjuting entry to increase overhead and transfer into each concept

8 0

4 years ago

The money demand function for an economy is given by (M/P)d = (0.6Y)/(i1/2). If output is 1,000 units, the nominal interest rate

DIA [1.3K]

Answer:

$0.6

Explanation:

Nominal interest rate (i) = 9% = 0.09

Output (Y) = 1,000

Money supply(M) = 1,200

==> (M/P)^d = (0.6Y) / i^(1/2)

==> 1200/P = 0.6*1000 / 0.09^(1/2)

==> 1200/P = 600 / 0.3

==> 1200/P = 2000

==> 1200 = 2000 * P

==> P = 1200/2000

==> P = $0.6

Therefore, the price level is $0.6

6 0

3 years ago

During 2020, Stellar Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Stellar for a

Ber [7]

Answer:

What is the amount of gross profit realized during 2020?

(460 x $33.30) + (230 x $29.60) + (276 x $18.50) = $27,232

What is the amount of inventory of unsold straight chairs on December 31, 2020?

[(920 - 460) x $56.70] + [(690 - 230) x $50.40] + [(1,610 - 276) x $31.50] = $26,082 + $23,184 + $42,021 = $91,287

Explanation:

lump sum cost of chairs = $137,655

Type Chairs Selling Price Each Total

Lounge chairs 920 $90 $82,800

Armchairs 690 $80 $55,20

Straight chairs 1,610 $50 $80,500

total 3,220 $218,500

if we allocate costs based on resale, then each chair should cost:

Lounge chairs $90 x ($137,655 / $218,500) = $56.70

Armchairs $80 x ($137,655 / $218,500) = $50.40

Straight chairs $50 x ($137,655 / $218,500) = $31.50

contribution margin per chair:

Lounge chairs $90 - $56.70 = $33.30

Armchairs $80 - $50.40 = $29.60

Straight chairs $50 - $31.50 = $18.50

7 0

4 years ago

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companyâs products, a football helmet for the N

elena-14-01-66 [18.8K]

Answer:

Instructions are below.

Explanation:

Giving the following information:

According to the standard cost card, each helmet should require 0.55 kilograms of plastic, for $7.00 per kilogram.

First, we need to calculate the standard quantity of plastic to make 3,600 units.

Standard quantity= standard direct material required per unit* numbers of units

Standard quantity= 0.55*3,600= 1,980 kg

Now, we can determine the standard cost:

Standard cost= 1,980kg* $7= $13,860

7 0

3 years ago

The financial statements of Burnaby Mountain Trading Company are shown below. Income Statement 2017 Sales $7,000,000 Cost of Goo

vova2212 [387]

Answer:

d. 2.83

Explanation:

Note: The financial statement in the question are merged together. They are therefore sorted before answering the question. See the attached excel file for the full question with the sorted financial statement.

The explanation to the answer is now as follows:

The current ratio is a liquidity ratio that is used in measuring whether a company has adequate resources to meet its short-term obligations or pay its liabilities from its current assets.

The current ratio provides a comparison current assets to current liabilities of a company and it can be calculated using the following formula:

Current ratio = Total current assets / Total current liabilities ................. (1)

From the 2017 balance sheet of Burnaby Mountain Trading Company, we have:

Total current assets = $1,700,000

Total current liabilities = $600,000

Substituting the values for Total current assets and Total current liabilities into equation (1), we have:

Current ratio = $1,700,000 / $600,000 = 2.83

Therefore, The firm's current ratio for 2017 is 2.83. That is, the correct option is option d. 2.83.

This indicates that the firm has more than enough current assets to pay off 2.83 or 283% of its current liabilities.

Download xlsx

4 0

3 years ago