Question 1 of 10
1 answer:
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Answer:
$280,950
Explanation:
As for the information given:
Closing balance of investment on 31 December 2015 = $440,000
Now the following adjustments need to be made to calculate the balance as on 1 August 2016
Add: Share of income from Jan to Jul 2016 = $4,000 7 months
20% = $5,600
Less: Dividend Received = $20,000 20% = $4,000
Less: Amortization of patent = $6,000/12 7 = $3,500
= $440,000 - $1,900 = $438,100
Since Jabiru sold half of its investment, thus, value of its half of the investment shall be:
$438,100/2 = $219,050
Sale value = $500,000
Thus, gain amount = $500,000 - $219,050 = $280,950
Answer and Explanation:
1. The computation of overhead rate based on direct labor cost is shown below:-
Overhead rate = Overhead applied × 100 ÷ Direct labor cost
= 888 × 100 ÷ 1,200
= 74%
2. The Preparation of job-order cost sheet for the four jobs is shown below:
Particulars Job 86 Job 87 Job 88 Job 89
Beginning balance $6,888 $6,820
Direct materials $3,000 $7,000 $2,100 $1,500
Direct labor $800 $6,000 $900 $500
Applied overhead
is 74% of direct labor $592 $4,440 $666 $370
Total $11,280 $24,260 $3,666 $2,370
3. The computation of ending balances of Work in Process and Finished Goods is shown below:-
Work in process of Job 88 = $3,666
Finished goods = Total of Job 86 + Total of Job 89
= $11,280 + $2,370
= $13,650
4. The computation of the Cost of Goods Sold for March is shown below:-
Cost of goods sold is
= Job 87
= $24,260
