Answer:
$20,700 ordinary loss
Explanation:
Based on the information given if the first Operating assets generated a gain of the amount of $38,700 while the second assets generated a loss of the amount of $59,400 after been sold out which indicate or means that Hugo should recognize the amount of $20,700 ORDINARY LOSS which is calculated as :
Ordinary loss =-$59,400+$38,700
Ordinary loss =-$20,700
Therefore As a result of these sales, Hugo should recognize:$20,700 ORDINARY LOSS
Answer and Explanation:
The classification is as follows
1. current liability
2. current liability
3. Current assets
4. Non current asset or fixed asset
5. Current asset
6. Stockholder equity
7. Non current asset or fixed asset
8. Current liability
9. Non currnet asset or fixed asset
10 Current liability
11 Stockholder equity
12 Current asset
13 Current liability
Answer:
There are three stages of assignment of costs to each product and these are as under:
- Allocation
- Apportionment
- Absorption / Activity Based costing
So this question relates to stage one. Suppose the following situation:
There are 2 departments and they have following expenses
Department A has a supervisor whose annual salary is $30000
Department B has a worker whose annual salary is $22000
Department A & B have shared a rented property for there operations.
Department A and B also shares electricity bills and annual electricity charges stand almost $80,000
Now the directly attributable / traceable cost to Department A are those that are hundred percent related to Department A. In this example, we saw that supervisor salary is the only cost that is hundred percent related to Department A. Likewise Worker's salary is also relateable to Department B. Whereas the rental cost and electricity bills are not directly attributable to these departments. So this means the manufacturing costs that are directly traceable are those that hundred percent relates to the manufacturing departments.
Local income taxes. Other taxes like federal income tax would go to nationwide programs. Medicare tax goes towards national health care, etc. Local income taxes will go towards city programs
Answer:
Lions Incorporation
The amount of Machining cost assigned to Product X is:
= $663,000.
Explanation:
a) Data and Calculations:
Product A Product X Total
Activities used Machining Inspection
Activity driver Machine hours Number of batches
Activity rate $170/ mh $510/ batch
Usage of activity drivers:
Machine hours 1,900 3,900 5,800
Number of batches 45 22 67
The amount of Machining cost assigned to Product X:
= 3,900 * $170 = $663,000
