Answer:
The correct answer is option C.
Explanation:
Dollar bills in the modern economy will be used as money because they serve as a medium of exchange, store of value, and unit of account. They have no independent value as a commodity apart from these uses.
This makes the exchange function of money easier. People will not hoard dollar bills for other purposes as it has no intrinsic value on its own. It is just a piece of paper.
Answer:
Work in Process (Dr.) $140,000
Manufacturing overhead (Dr.) 40,000
Payroll / Salaries Payable $180,000
Explanation:
Job order costing is a costing method used by the managerial accountants when the company produces different products and these products are not identical in-nature. An alternative to this method is Process costing which is used when a company produces homogenous products. In this case, the company has adopted job order costing because its products can be hetrogenous in-nature. Moreover, the company has incurred a Payroll cost of $180,000. $40,000 out of this amount is classified as indirect labor because the company is not able to trace it to a particular job and it will be treated as manufacturing overhead. This amount could have been paid to supervisors of factory or maintenance workers. The remaining amount of $140,000 is classified as direct labor because the management is in a better position to trace it to a particular job. This amount directly goes to Work-in-Process account.
You might have noticed that the indirect cost is kept in Manufacturing overhead account, whereas the direct labor cost is charged to Work-in-process account. This is because that at the start of a period, the management estimates the amount of manufacturing overhead (Indirect costs) and charge it to the work-in-process account. As the period goes on, the indirect costs are recorded in manufacturing overhead account when incurred, and at the end of period we compare the Actual manufacturing overhead with the expected (charged to Work-in-process) and make adjustments.
Thanks!
Answer:
$1,000
Explanation:
Zeke's zipline sold 6 acres of land
The sales price of the land was $12,000
The adjusted basis of the land was $9,000
Zeke received an amount of $4,000 at the time of sale
The remaining $8,000 will be received next year
Therefore, the amount of gain that will be recognised by Zeke in the Current year can be calculated as follows
Sales price-adjusted basis/sales price
$12,000-$9,000/$12,000
= $3,000/$12,000
= 0.25
Amount received at the time of sale × 0.25
= $4,000×0.25
= $1,000
Hence Zeke will recognise a gain of $1,000 in the Current year.
Answer:
62,400 units
Explanation:
The computation of the equivalent units for conversion cost is shown below:
= Started and completed units × completion percentage + closing inventory units × completion percentage
where,
Started and completed units is
= 65,000 units - 6,500 units
= 58,500 units
So the equivalent units is
= 58,500 units × 100 + 6,500 units × 60%
= 58,500 units + 3,900 units
= 62,400 units
The 3/5 finished means 60% is finished
