Answer:
.E) A partner can commit or bind the partnership in any contract within the scope of the partnership business.
Explanation:
.E) A partner can commit or bind the partnership in any contract within the scope of the partnership business.
Mutual agency means that rights of all partners and authority committed or bind the partnership in any contract representing the business operations.
Any partner can act on behalf of the others and acts of each of the partners is binding for all the partners.
Choices A, B ,D are all characteristics of partnership but not mutual agency.
Answer:
Units produced in the year
Explanation:
The production method of calculating depreciation helps in calculating the depreciation that truly reflects the fall in value of the asset by the production of number of units. This way of allocation of is useful where the life of the machinery can be easily measured and also that the method truly represents the fall in value.
The complete formula is under:
Depreciation = (Cost – Residual Value) * Act. Production / T.Estd Production
Answer:
b. $10
Explanation:
The computation of the cost per shirt is shown below:
= (The cost of its factory, raw materials, and labor) ÷ (production level)
= $500,000 ÷ 50,000 shirts
= $10
Since we have to compute the cost per shirt before the increase in production level so we do not consider the increased production level and increase labor and raw material expense.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Direct materials used $ 5,400
Direct Labor 7,400
Total Factory overhead 5,500
Beginning work in process 3,400
Ending work in process 4,800
To calculate the cost of goods manufactured we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 3,400 + 5,400 + 7,400 + 5,500 - 4,800
cost of goods manufactured= $16,900
