Answer:
Comparability
Explanation:
The comparability accounting principle states that the financial information from one period can be compared to the financial information of another period to determine what changes have occurred during that time. It is one of the most important qualities that financial information should possess, since comparability allows year to year comparisons within the same company's financial information or the comparison of financial information between different companies. This is exactly why accountants have to follow certain procedures and norms like GAAP.
Answer:
Standard hours allowed= 39,000
Explanation:
Giving the following information:
Standard direct labor hours per unit= 5 hours
Actual results:
Units produced 7,800 units
<u>To calculate the standard hours allowed, we need to multiply the number of units produced for the unitary standard direct labor hours:</u>
Standard hours allowed= 7,800*5
Standard hours allowed= 39,000
Answer:
overapplied for 20,200
Explanation:
Predetermined overhead rate:
350,000/250,000 = 1.4
each dollar of labor generates 1.4dollar of overhead
Applied overhead:
63,000 x 1.4 = 88,200
actual overhead: 62,000
82,200 - 62,000 = 20,200
<u>NOTE: INCOMPLETE INFORMATION</u>
The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company. Work in process inventory $0 Raw materials inventory $28,000 Finished goods inventory $40,000 Additional data: 1) actual manufacturing overhead for January amounted to $62000 2) Total direct labor cost for januray was $63,000 3) The predetermined manufacturing overhead rate is based on direct cost. The budget for the year called for $250,000 of direct labor cost and $350,000of manufacturing overhead costs. 4) The only job unfinished on January 31 was Job. 151 for which total direct labor charges were $5,200( 800 direct labor hours) and total direct material charges were $14,000 5) Cost of direct materials placed in production during January totaled $123,000. There were no indirect material requisitions during January. 6) January 31 balance in raw materials inventory was $35,000 7) Finished goods inventory balance on January 31 was $34,500
Answer:
6.39%
Explanation:
The cost of the machine is $600,000
The net income is $23,000
The management predict a that it has a 10 years service life
The salvage value is $120,000
The first step is to calculate the average investment
Average investment= (Cost of machine+Salvage value)/2
= $600,000+$120,000/2
= $720,000/2
= $360,000
Therefore, the accounting rate of return can be calculated as follows
= Annual net income/Average investment
= $23,000/$360,000
= 0.0639×100
= 6.39%
Hence the accounting rate of return is 6.39%
Answer:
Paid-in Capital would be credited with $5,000
Explanation:
The double entry would be as under:
Dr Bank Account $30,000
Cr Common Stock $25,000...... $5 per share * 5,000 shares
Cr Paid In Capital $5,000 .......... ($30,000 amount receive - Common stock)