Answer:
(1) Material usage variance for X: 1,500 (Favorable)
(2) Material usage variance for Y: -19,500 (Adverse)
Explanation:
Material usage variance for X:
Standard Mix for actual Yield:
= (Standard mix of material X ÷ Yield) × Yield actual mix
= (3,500 ÷ 4,000) × 36,000
= 31,500
Material Usage Variance:
= (Standard Mix for actual Yield- Actual Mix) × Standard unit price
= (31,500-30,000) × $1
= 1,500 (Favorable)
Material usage variance for Y:
Standard Mix for actual Yield:
= (Standard mix of material Y ÷ Yield) × Yield actual mix
= (1,500 ÷ 4,000) × 36,000
= 13,500
Material Usage Variance:
= (Standard Mix for actual Yield- Actual Mix) × Standard unit price
= (13,500 - 20,000) × $3
= -19,500 (Adverse)
Total = (19,500) + 1,500
= (18,000) [Adverse]
Answer:
Average receivables = $157,500,000
Explanation:
<em>Account receivable represent the amount of credit made by a business which remain uncollected as at the reporting date. In other words, they represent the amount that customers are owing the business in respect of credit sales.</em>
Average account receivables
=(opening balance + closing balance)/2
=( $142,650,000 + $172,350,000)/2
= 157,500,000.
Answer and Explanation:
The Journal entry is shown below:-
Amount should be capitalized for new vehicle = Cost + Painting and new logo cost + Deluxe Roof rack and trailer hitch
= $15,600 + $6,600 + $2,900
= $25,100
We took the cost of painting and deluxe roof and trailer hitch costs into account as they are supposed to increase the vehicle's future benefits.
Depreciation = (Cost - Salvage Value) ÷ Number of Years
= ($25,100 - $6,300) ÷ 5
= $3,760 per year
In the year 2022 vehicle is used only for 6 months (July to Dec), depreciation expense for the year ended December 31, 2022 is
= $3,760 × 6 ÷ 12
= $1,880
So, the Journal entry is
Depreciation expense Dr, $1,880
To Accumulated Depreciation $1,880
(Being depreciation provided for the year 2022 is recorded)
Therefore for recording the depreciation provided for the year 2022 we simply debited the depreciation expenses while we credited the accumulated depreciation.
