Answer:
Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as Product costs and expenses when the goods are sold, Option D.
Explanation:
Indirect costs are also manufacturing overheads which cannot be directly put on the product but they have to be allocated in some way. So, these are treated as 'product costs' and 'expenses' when the goods are sold. They are not period costs as per Option A and option C. Option B which says that it is product costs when incurred, which is also incorrect.
Examples of indirect costs can be accounting and legal expenses, rent, telephone expenses, salaries of administrative.
Direct costs includes the costs of direct 'labor', materials and commissions.
Answer:
c. $112,800
Explanation:
The computation of operating income is shown below:-
= (Contribution margin of blink division × Increase sales percentage) - Fixed cost of blink division - Allocated common costs of blink division - Allocated common costs of blur division
= ($218,000 × 135%) - $93,000 - $48,000 - $40,500
= $294,300 - $93,000 - $48,000 - $40,500
= $112,800
Answer:
$3,850
Explanation:
The computation of the machine's second-year depreciation under the straight-line method is shown below:
= (Cost of the machine - salvage value) ÷ (estimated useful life)
= ($43,500 - $5,000) ÷ (10 years)
= ($38,500) ÷ (10 years)
= $3,850
In this method, the depreciation is the same for all the remaining useful life. Therefore, for the second year also, the depreciation expense is the same i.e $3,850
Answer:
D) inventory
Explanation:
Inventory: Inventory is the stock of the company. It passed through various cycles i.e. raw material, work in progress, finished goods. When the cycle is finished then the product is ready to sell in the market.
Moreover, the recording of the stock is done based on the cost or market value whichever is lower.
In the given question, operation management uses the storage facility. So, the storage facility is used to store the inventory. Here, the storage facility means the warehouse in which the company products are kept for safety measurement.
Thus, all other options are incorrect except D option
Answer:
Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.
Explanation:
Step 1 of 2
Calculate the amount of factoring fee.
Factoring fee = 5% ×Account Receivable
=5%×$75,000
=$3,750
Step 2 of 2. Journey record. Image attached.
Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.
