Answer:
b. $303,000
Explanation:
The activity rate
1. Machining = 

= $ 20 per machine hour
2. Machine set up = 

= $ 500 per set up
3. Product design = 

= $ 22000 per product
4. Order size = 

= $ 26 per direct labor hour
Now the ABC cost (Product T05P)
1. Machining = 
= 4000 x 20
= $ 80,000
2. Machine set ups = 
= 90 x 500
= $ 45,000
3. Product design = 
= 1 x 22000
= $ 22,000
4. Order size = 
= 6000 x 26
= $ 156,000
Therefore, the total manufacturing overhead cost assigned to product T05P = 80000 + 45000 + 22000 + 156000
= $ 303,000
Answer:
Journal entries for the
Completion of Job 113
Debit Finished Good/Inventory Account $ 5000
Credit WIP JOB 113 Account $ 5000
(In words we will debit finished good account by shifting work in process related to the job 113 in it)
Journal entries for the
Completion and sale of Job 85
Debit Finished Good/Inventory Account $ 3000
Credit WIP JOB 113 Account $ 3000
For sales following two entries will be passed.
Debit Cost of Good Sold Account $ 3000
Credit Finished Good/Inventory Account $ 3000
Debit Cash (or Receivable if credit sale) $ 4500
Credit Sales Account $ 4500
Answer:
The correct answer is False.
Explanation:
Schedule M-1 is required when the gross income of corporations or their total assets at the end of the year is greater than $ 250,000.
Schedule M-3 asks certain questions about the financial statements of the corporation and reconciles the net income (loss) of the financial statements for the corporation (or group of consolidated financial statements, if applicable).
Answer:
D) selling agent.
Explanation:
Sine Fahad's company never obtains title for the goods that they sell, they are acting like a selling agent. They are very similar to a commission merchant except that Fahad's company is also responsible for the marketing functions of Celextron.
There are several types of sales agents and distributors, it all depends on certain details about how they work:
- a manufacturer's agent work directly for the manufacturing firm, in this case it would have been Celextron.
- a sales branch is a company owned by Celextron.
- a full service wholesaler obtains title of the goods.