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3 years ago

Allocating product cost between cost of goods sold and ending inventory

Business

1 answer:

Oksana_A [137]3 years ago

7 0

Explanation:

The computation of the product cost under each inventory method is shown below:

A. FIFO

Cost of goods sold = $1,060

Ending inventory = $1,380

B. LIFO

Cost of goods sold = $1,380

Ending inventory = $1,060

C. Weighted average

Weighted average cost per unit = ($1,060 + $1,380) ÷ 2 = $1,220

Cost of goods sold = ($1,060 + $1,380) ÷ 2 = $1,220

Ending inventory = ($1,060 + $1,380) ÷ 2 = $1,220

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Answer:

The results are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

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

Predetermined manufacturing overhead rate= 481,250 / 35,000

Predetermined manufacturing overhead rate= $13.75 per direct labor hour

Now, we allocate overhead based on actual hours:

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

Allocated MOH= 13.75*40,000

Allocated MOH= $550,000

Finally, the under/over applied overhead and the closing to cost of goods sold:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 644,000 - 550,000

Underapplied overhead= $94,000

When overhead is underapplied, we need to debit the cost of goods sold.

COGS 94,000

Manufacturing overhead 94,000

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3 years ago

List at least one discretionary expense listed on the bank statement or check register

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Answer:

overdraft fees

not 100% sure, but hope that helps

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4 years ago

Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes pa

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Answer:

A. True

Explanation:

The term business intelligence refers to the plans, process through which the raw data is to be converted into meaningful information that became relevant for the ethical decision making so that the goals and the objectives of the company could be accomplished.

Data + Process = Information

Collection of information through internal and external parties would also help to analyze the trends, patterns for better decision making.

Therefore, the given statement is true.

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3 years ago

Two automobile manufacturers are working together to develop hybrid technology. This type of relationship between the two automo

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Answer:

The correct option is A, co-opetition

Explanation:

Co-opetition derives its root from competition and co-operation.It refers to an arrangement where competing firms co-operate towards achieving a common goal like the case of two two automobile manufacturers are likely going to be in direct competition with each co-operating in order to develop a hybrid technology expected to benefit both.

Hence option C is obviously wrong as competition is just one side of co-opetition which also includes co-operation

Strategic alliance lacks an element of competition,hence it is also wrong, same applies to collaboration.

Finally, business strategy is generic in nature so it is out of context.

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4 years ago

Read 2 more answers

On July 1, Mesa Verde, Inc. purchased a 6-month insurance policy for $12,600. Prepaid Insurance was debited for the entire amoun

Luba_88 [7]

Answer:

Option C.

Dr Insurance Expense $2,100

Cr Prepaid Insurance $2,100

Explanation:

The initial payment of $12,600 is for 6 months which means monthly charge of insurance is $2,100 ($12,600 / 6 months). The initial prepaid expense was recorded as under:

Dr Prepaid Insurance $2,100

Cr Cash Account $2,100

At the end of each month, the insurance expense is recognized and the entry is as under:

Dr Insurance Expense $2,100

Cr Prepaid Insurance $2,100

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3 years ago