Answer:
$24129.6
Explanation:
Calculation:
Equivalent units in ending work in process inventory for conversion = 33000+(12000*0.4) = 37800
Cost per equivalent unit (conversion) = 29000+161000/ (37800) = 5. 027
Total production cost of ending inventory = 24129.6
We calculate the equivalent units of production by adding the units transferred and completed, and the equivalent units in the ending inventory, so the equivalent units in ending work in process inventory for conversion becomes 37800.
Then we add the cost of beginning work-in-process for conversion and costs added during the production period for conversion and divide it by equivalent units in in ending work in process inventory for conversion.
After that, we get per unit cost which is then multiplied by the equivalent units in conversion to get total production costs.
Since, the all direct material costs are added in the beginning of the process,we don’t include in the other periods.
Answer:
Barney is not entitled to a loss deduction.
Explanation:
Barney is not qualified for a loss deduction. Barney cannot have any realization because the stock has not been sold or become worthless. If Barney's stock becomes worthless then generally he may deduct its tax basis in the stock as a worthless stock loss for the year in which the stock becomes worthless.
Answer:
Amount overpaid = $0.0104 (Approx)
Explanation:
Given:
Quantity of apple = 5 lb
Amount paid = $ 1.99 / lb
Gravity on mountain = 9.79 m/s²
Find:
Amount overpaid
Computation:
Actual mass of apple = 5 (9.79/9.80)
Actual mass of apple = 4.9948
Actual amount = 4.9948 × 1.99
Actual amount = $9.9396
Amount overpaid = Amount paid -Actual amount
Amount overpaid = [5 x 1.99] - $9.9396
Amount overpaid = $0.0104 (Approx)
Answer:
C. $5,150
Explanation:
Calculation for what will be the value of interest payment at the end of fifth year in real dollars
First step is to calculate the Interest amount per year
Interest amount per year = 100,000*6%
Interest amount per year = $6,000
Now let calculate the value of interest payment at the end of fifth year in real dollars
Value of interest payment in 5th year in real dollars = 6,000/(1+3.1%)^5
Value of interest payment in 5th year in real dollars= 6,000/1.164913
Value of interest payment in 5th year in real dollars= $5,150
Therefore the Value of interest payment in 5th year in real dollars will be $5,150
Answer:
The Best Cost System is the "Process Costing System"
Explanation:
A Process Costing System amasses costs when an enormous number of indistinguishable units are being created. Right now, is generally proficient to collect expenses at a total level for an enormous group of items and afterward dispense them to the individual units delivered. The supposition that will be that the expense of every unit is equivalent to that of some other unit, so there is no compelling reason to follow data at an individual unit level. The great case of a procedure costing condition is an oil treatment facility, where it is difficult to follow the expense of a particular unit of oil as it travels through the processing plant.
Answer: Process costing system.
Explanation: A process costing system used in the manufacturing industry that accumulates the costs of producing a continuous stream of similar items.
It is calculated thus:
Cost per unit = cost of unit/ expected output in unit.
Using process costing method is very efficient to accumulate costs at an aggregate level for a large batch of products and then allocate the cost to the individual units produced.
There are three types of process costing and they are:
1. Weighted Average Cost
2. FIFO - First In First Out
3. Standard Cost
B. Treat the loss as a subsequent event and adjust the 2019 financial statements to record the loss on uncollectible accounts.
C. Treat the loss as a subsequent event and provide a footnote about the loss in the 2019 financial statements.
D. File a lawsuit against the customer in hopes of collecting some of the money owed to the client.
Answer:
The correct answer is Option B.
Explanation:
Based on IAS 10 Events after the Reporting Period, subsequent events can be an adjusting event or non-adjusting event. If it is an adjusting event, it means an event after the reporting date before the audited financial statements are signed that provides further evidence of conditions that existed at the reporting date. However, non-adjusting events are events after the reporting date that are indicative of a condition that arose after the reporting date, this requires disclosure in the financial statements while for adjusting events, the financial statements are adjusted for condition that arose after the reporting date.
The declaration of the customer as bankrupt is an adjusting event since it affects the receivable collection, hence the need to adjust it as uncollectible,
Calculation of amount of direct materials charged to job no. 173:
It is given that the work in process inventory on December 31 consisted of job no. 173 with a balance of $66,200.
Job no. 173 has been charged with manufacturing overhead costs of $20,000. Denver allocates manufacturing overhead costs at a rate of 50% of direct labor cost. It means the direct labor cost would be 20,000/50% = $40,000
Now we can calculate the amount of direct materials charged to job no. 173 as follows:
Direct material Cost = Total Cost allocated to Job – Direct Labor Cost – Manufacturing Overhead Cost
= 66200-40000-20000
= 6200
Hence, the amount of direct materials charged to job no. 173 is $6,200
The Denver company's job costing system showed that job no. 173 in the work in process inventory had a balance of $66,200. Direct labor was calculated by dividing manufacturing overhead of $20,000 by 50% to arrive at $40,000. The direct materials cost, which is obtained by subtracting direct labor and manufacturing overhead from the total job cost, amounted to $6,200.
The Denver company's problem involves understanding their job costing system, particularly regarding job no. 173. They have a working process inventory at a balance of $66,200. The manufacturing overhead costs, which are 50% of the direct labor costs, have been charged at $20,000 for this job. To find the direct materials costs, we first need to calculate direct labor cost. Given that manufacturing overhead is 50% of direct labor, it means that direct labor costs would be $20,000 divided by 50% or $40,000. The total job cost is composed of direct labor, direct materials, and manufacturing overhead. So, to determine the direct materials charged to this job, we subtract the known costs (direct labor and manufacturing overhead) from the total job cost; $66,200 (total cost) - $40,000 (direct labor) - $20,000 (manufacturing overhead) equals $6,200. Therefore, the amount of direct materials charged to job no. 173 is $6,200.
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