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2 years ago

EA4.

Business

1 answer:

boyakko [2]2 years ago

3 0

Answer:

Explanation:

There is the relation between the variable cost and the product cost & fixed cost and the period cost

The product cost is that cost which is used to make the product. It includes direct material, direct labor, and the manufacturing overhead

In mathematically,

Product cost = Direct material + direct labor + manufacturing overhead

The period cost is that cost which remain fixed and is incurred when the time passes

Period cost = Salaries of sales person + delivery trucks depreciation + Repairs to office equipment + Advertising expense + usage of office supplies expense

So, the categorization is shown below:

Lumber used to construct decks ($12.00 per square foot) = Variable cost and Product cost

Carpenter labor used to construct decks ($10 per hour) = Variable cost and Product cost

Construction supervisor salary ($45,000 per year) = Fixed cost and the period cost

Depreciation on tools and equipment ($6,000 per year) = Fixed cost and the period cost

Selling and administrative expenses ($35,000 per year) = Fixed cost and the period cost

Rent on corporate office space ($34,000 per year) = Fixed cost and the period cost

Nails, glue, and other materials required to construct deck (varies per job) =

Variable cost and Product cost

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Journalize the entries to record the following summarized operations related to production for a company using a job order cost

MaRussiya [10]

Answer:

Raw Materials 176,000 debit

Account Payable 176,000 credit

Factory Overehad 2,700 debit

WIP 153,700 debit

Raw Materials 156,400 credit

Factory Overehad 12,000 debit

WIP 141,300 debit

Wages Payable 153,300 credit

Factory Overhead 37,000 debit

acc dep- equipment 37,000 credit

Factory Overhead 6,100 debit

prepaid 6,100 credit

Factory Overhead 76,000 debit

account payable 76,000 credit

WIP 105,300 debit

Factory Overhead 105,300 credit

Finished Goods 415,300 debit

WIP 415,300 credit

Account receivables 638,000 debit

Sales Revenue 638,000 credit

COGS 412,000 debit

Finished Goods 412,000 credit

Explanation:

Much of these are self-explanatory

<u>Notes:</u>

<u>The direct materials and labor applied to produciton orders go into WIP</u>

he applied overhead goes into WIP too.

Then, for <u>other manufacturing cost we post into the debit side of manufacturing overhead.</u> This way; we can later define the subapplication or overapplication of manufacturing overhead.

The finished goods are debited and WIP credited to represent the transfer to finished goods.

The finished good which are sold will be recognize as COGS

5 0

2 years ago

The Baldwin Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The exp

Svet_ta [14]

Answer:

b. $4,908,000

Explanation:

According to the FASB GAAP, the straight line method is used in this given question which is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($40,900,000 - $4,090,000) ÷ (15 years)

= ($36,810,000) ÷ (15 years)

= $2,454,000

In this method, the depreciation is same for all the remaining useful life

For two years, the accumulated depreciation would be

= Annual year depreciation × number of years

= $2,454,000 × 2 years

= $4,908,000

7 0

2 years ago

Veronica buys a laptop from a local salesperson, but it turns out to be defective. She tells her friends and relatives about the

katovenus [111]

Answer: A negative referral.

Explanation: Veronica has given a negative report of the laptop she bought from local salesperson to her family and friends therefore a negative referral has been given about the salesperson, which would discourage the family and friends from buying things from that local salesperson in the future.

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2 years ago

Lin-Mara's company has a code of ethics and a separate code of conduct. If she wants to be sure that she complies with the compa

Radda [10]

Answer: False

Explanation:

The Code of Ethics and the Code of Conduct are standards that employees must adhere to. Code of Ethics are policies outlined by the top executives in organizations which are designed to guide employees to carry out business activities with integrity and honesty. The code of ethics describes the vital values of the organisation and helps workers know the right and wrong things.

Code of Conduct expresses the behavior and practices that is required of an individual to become a member of a profession or organisation. The code sets out the rules of the organization and members who violates it are punished. Examples are dressing, punctuality etc.

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2 years ago

The wireone company manufactures high-quality coated electrical wire in two departments, weaving and coating. materials are intr

storchak [24]

<h2><u>Answer:</u></h2>

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After the weaving is finished, the materials are moved into the Coating Department, where strength plastic covering is connected. Chosen information identifying with the Weaving Department amid May are given underneath:

The organization utilizes the weighted-normal strategy. Required: 1. Figure the proportional units of creation. 2. Register the expenses per proportional unit for May. 3. Decide the expense of completion work in procedure stock and of the units exchanged to the Coating Department. 4. Set up a cost compromise between the costs decided in (3) above and the expense of starting stock and expenses included amid the period.

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2 years ago