The Precision Widget Company had the following balances in their accounts at the end of the accounting period: Work-in-Process $ 5,000 Finished Goods 20,000 Cost of Goods Sold 200,000 If their manufacturing overhead was overallocated by $8,000 and Precision Widget adjusts their accounts using a proration based on total ending balances, the revised ending balance for Cost of Goods Sold would be
Answers
Answer:
$192,880
Explanation:
We need to determine the balances for each of the items.
Work in process =(5,000/225,000*100) × 8,000
= 2.2% × 8,000
= 176
Finished goods = (20,000/225,000 *100) × 8,000
= 8.9% × 8,000
= 712
Cost of goods sold = (200,000/225,000 *100) × 8,000
= 88.9% × 8,000
= 7,120
Therefore, the revised ending balance for COGS would be ;
= 200,000 - 7,120
= $192,880
Related Questions
The following information was available for Paul Company at December 31, 2020: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $968,000; and sales $1,360,000. Paul’s inventory turnover in 2020 wasa21.5 days.b.26.4 days.c.30.2 days.d.33.8 days.
George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. Which of the following best approximates the price elasticity of demand? -2.2 -1.8 -2 -2.6 Suppose George's marginal cost is $5 per shirt. Before the price change, George's initial price markup over marginal cost was approximately . George's desired markup is . Since George's initial markup, or actual margin, was than his desired margin, raising the price was .
A. Scissorwire Inc. can register with the SEC at any point after the dip in shares. b. The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seekScissorwire Inc. sells shares of its stock to the public, with each share valued at $16. After a year, the company incurs a loss and the price of the stock drops to $5. The company reveals that it had deliberately not registered with the SEC before going public and that it has no money to pay the investors. Which of the following holds well in this context? Answer a. Scissorwire Inc. can register with the SEC at any point after the dip in shares. b. The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek criminal penalties. c. The investors have been negligent in not verifying registration before purchase of shares and cannot rescind their purchase. d. Scissorwire Inc. is liable for the violation of the Securities Exchange Act of 1934.
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Answers
Answer: Option (A) is correct.
Explanation:
The budgeted production determines the number of units that should be produced. It is derived from the combination of two components i.e. sales forecast and finished goods inventory in hand.
Budgeted production:
= Budgeted sales in units + Desired ending inventory in units - Beginning inventory in units
Answer:
The correct option is A. dding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total
Explanation:
The formula to computed the budgeted production is shown below:
= Ending inventory in units + Budgeted sales in units - Beginning inventory in units.
where,
Ending inventory is the inventory which is left at the end of the year or we can say the closing stock of inventory
Budgeted sales are the sales which is to be sell in the future
Beginning inventory is that inventory which shows at the starting of the year or we can say opening stock of inventory
Therefore, the remaining options are incorrect.
So, the correct option is A. dding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total
(b) Prepare the general journal entry to record the revenue and related liabilities for the month.
Answers
Answer:
a. $800000
b. Account receivable Dr. 840000
To sales revenue 800000
To sales tax payable 40000
Explanation:
a. Given the total billed amount = $840000
Sales tax = 5%
Total revenue for the month = 840000 x (100 / 105) = $800000
b. Account receivable Dr. 840000
To sales revenue 800000
To sales tax payable 40000
Answers
Answer: D) cyclical
Explanation:
Cyclical Demand is difficult to predict because it goes according to the business cycle and hence is affected on a Macro Economic scale by events at a National or International level.
This means that something could be in demand today but the demand could fall or rise sharply based on the stage of the business cycle the economy is in.
Respond to two other student's posts.
Use actual numbers in your memo. For example, if you need to borrow money to pay a $10,000 bill that offers terms of 2/10, n/30 and the loan's interest rate is 6%.
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Answer:
Memo
To: The Finance Manager
From: The Payables Accountant
Subject: Bank Loan to Pay Suppliers
Date: October 5, 2020
The above subject on our previous discussion refers.
This memo clarifies the advantage of borrowing from our bank the sum of $100,000 in order to offset the account of our supplier who has offered us the trade terms of 2/10, n/30.
Recall that the bank loan's interest rate is 6% per annum. If we borrow within the month and repay 30 days after, the interest cost will be $500 ($100,000 * 6%/12).
You can compare this to the discount we shall receive from the supplier totaling $2,000 ($100,000 * 2%). We can even extend the bank loan to 2 months, thereby paying a total interest cost of $1,000 ($500 * 2).
The implication is that we shall be making some gains by taking advantage of the cash discount. May you approve the loan based on this clarifications.
Regards,
Tony Ohagwam
Explanation:
This memorandum attempts to justify the request for a bank loan in order to settle the bill of one of our company's suppliers. It demonstrates the huge financial benefits that are implicit in accepting cash discounts from suppliers.
Answers
Answer: Dwayne's investment will be worth $89,961.02 after the last annuity payment is made.
Since Dwayne contributes $4700 at the beginning of each year, we need to calculate the future value of an annuity due.
We use this formula for our calculations:
Substituting the values we get,
Answers
Answer:
the break-even point in dollars is $6,500,000
Explanation:
The computation of the break even point in dollars is shown below;
As we know that
Break even point in dollars is
= Fixed cost ÷ contribution margin ratio
Since the variable cost is 80%, so the contrbibution margin is 20% so that the total selling price would be 100%
now
= $1,300,000 ÷ 20%
= $6,500,000
Hence, the break-even point in dollars is $6,500,000