Qualities of useful accounting information

Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting D

blagie [28]

Answer:

e. 225,000 materials; 195,000 conversion.

Explanation:

direct materials

beginning WIP inventory = 0%*50000

= 0

started and completed = 150000*100%

= 150000

ending WIP inventory = 75000*100%

= 75000

equivalent units = 0 + 150000 + 75000

= 225000

conversion

beginning WIP inventory = 50000*60%

= 30000

started and completed = 150000*100%

= 150000

ending WIP inventory = 75000*20%

= 15000

equivalent units = 30000 + 150000 + 15000

= 195000

Therefore, The equivalent units for direct materials and conversion respectively for May is $225,000 and $195,000 respectively.

7 0

2 years ago

Which of the following would be a scientific theory? A the hypothesis that if you increase the temperature of water, then sugar

Paladinen [302]

Answer:

D an explanation of why global temperatures are rising

Explanation:

3 0

3 years ago

Read 2 more answers

8. Hayward Industries manufactures dining chairs and tables. The following information is available: Dining ChairsTablesTotal Co

Contact [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Dining Chairs - Tables - Total cost

Machine setups: 200 - 600 - $48,000

Inspections: 250 - 470 - $72,000

Labor hours: 2,600 - 2,400

A) A single overhead rate:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (48,000 + 72,000) / (2,600 + 2,400)= $24 per direct labor hour

Now, we can allocate overhead based on direct labor hours:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Dining Chairs:

Allocated MOH= 24*2,600= $62,400

Tables:

Allocated MOH= 24*2,400= $57,600

B) We have to calculate an overhead rate for each activity cost pool.

<u>Overhead rate:</u>

Machine setups:

Estimated manufacturing overhead rate= 48,000/800= $60 per machine hour set up

Inspections:

Estimated manufacturing overhead rate= 72,000/ 720= $100 per inspection

Based on the overhead rate, we can allocate overhead to each product.

Dining chairs:

Allocated MOH= 60* 200 + 100*250= $37,000

Tables:

Allocated MOH= 60*600 + 100*470= $83,000

C) We can conclude that activity cost allocation is more accurate than using a single rate plant-wide. We can allocate costs more efficiently.

7 0

3 years ago

The principal-agent problem arises in labor markets because: Group of answer choices compensating wage differences do not pay fo

densk [106]

Answer:

workers may provide less-than-expected work effort.

Explanation:

Principal-agent problem

This is also called Agency problem. It is simply defined as a type of problem of motivating one party that is the agent just to act on behalf of another person which is the principal. This problems arise usually when incentives between the agent and the principal are not perfectly aligned or in tune.

This form of problem is also said to occur when agents example a firm's managers tends to run after their own personal goals rather than the goals of the principals who is the firm's owners.

Agency relationship

This form of relationship is said to occur if there is a set up or an arrangement in where one person's welfare is dependent or based on what another person does.

Agent

This is simply known as an Individual whose services has being employed by a principal so as to help achieve the principal's objective.

Principle

This is also known as a person who simply employs the services of one or more agents so as to obtain or achieve an objective.

6 0

3 years ago

The information below pertains to Basselier, Inc.:

wel

Answer and Explanation:

The journal entry to record the tax provision is given below:

Income tax expenses $48,840,000

Deferred tax assets ($10,900,000 ×0.40) $4,360,000

To Deferred tax liability (($15,900,000 + $1,900,000)×0.40) $7,120,000

To Income tax payable ($129,000,000 ×0.40) $51,600,000

(To record income tax expenses)

Here the income tax expense and deferred tax asset should be debited as it increased the asset and expenses and credited the liability & tax payable as it increased the liability

4 0

2 years ago

Qualities of useful accounting information​

Qualities of useful accounting information