Our Explanation of Depreciation emphasizes what the depreciation amounts on the income statement and balance sheet represent. Learn why depreciation is an estimated expense that does not assist in determining the current...
Our Explanation of Depreciation emphasizes what the depreciation amounts on the income statement and balance sheet represent. Learn why depreciation is an estimated expense that does not assist in determining the current...
account which serves as the control account for the job cost records of jobs that have been started but not completed is the __________ __________ __________ account. 9. A job could be a batch of several units....
was $__________. Use the following information for answering Questions 34 - 40: 34. The cost assigned to the 65 units in ending inventory under the periodic FIFO cost flow assumption is $__________. (omit cents) 35. The...
Our Explanation of Inventory and Cost of Goods Sold will take your understanding to a new level. You will see how the income statement and balance sheet amounts are affected by the various inventory systems and cost flow...
full disclosure going concern industry practices matching materiality monetary unit time period 13. Defined as the cash or cash equivalent amount at the time an asset was purchased. Select... conservatism cost economic...
to the change in the volume of activity A mixed cost is also referred to as a semivariable cost. A mixed cost is expressed by the algebraic formula y = a + bx, where: y is the total cost a is the fixed cost per period b...
as an annual amount per unit or as a percentage of an item’s cost. The calculation of the cost to store inventory should be the incremental annual costs or the company’s opportunity costs. In other words, if a...
What is a fixed cost? Definition of Fixed Cost A fixed cost is one that does not change in total within a reasonable range of activity. Since the fixed cost remains constant in total, the fixed cost per unit of activity...
unit. You must also realize that the cost flow assumption is independent of the physical flow of the products. This means you can rotate your company’s inventory (by selling its oldest units first) and yet flow the...
in order to replace the units sold. The use of historical costs during periods of increasing prices means that companies with large amounts of plant assets and inventory will be reporting net income that is greater than...
will be $25 per machine hour. If the actual costs end up being $1,000,000 but the machines ran 41,000 hours to produce good products, the products overabsorbed the fixed overhead by $25,000 ($1,025,000 absorbed –...
: January and December: $33.33 per MH ($1,000,000/30,000 MH) February-May and September-November: $20.00 per MH ($1,000,000/50,000 MH) June through August: $24.00 per MH ($1,200,000/50,000 MH) As shown...
Our Explanation of Working Capital and Liquidity provides you with an in-depth look at the components of working capital and the challenges of converting current assets to cash before obligations come due. You will see...
that is subtracted from the sales revenues on the income statement. For simplicity, assume that a company has only one product and during the year it sold 50,400 units at a selling price of $10 each. Also assume that...
assets that are used in a business and (except for land) will be depreciated over their useful life. Mark as wrong Mark as right units of production method (or) units of activity method Under this depreciation method a...
costs is assumed to be the variable cost rate times the change in the number of units of activity. Prior to doing the high-low calculation, it is important to plot or graph all of the data available to be certain that...
What are the benefits of a revenue budget? The main benefit of a revenue budget is that it requires looking into the future. The revenue budget should contain the assumptions made about the future and the details about...
for Various Activities The activities that could cause flexible budgets to flex might be the amount of sales, units of output, machine hours, miles traveled, etc. Join PRO to Track Progress Mark the Question as Read...
) is an unfavorable usage or quantity variance. $31 Wrong. See the calculation for $30. $51 Wrong. See the calculation for $30. Use the following information in answering Questions 17 – 18: During a recent accounting...
Our Explanation of Inventory and Cost of Goods Sold will take your understanding to a new level. You will see how the income statement and balance sheet amounts are affected by the various inventory systems and cost flow...
Our Explanation of Depreciation emphasizes what the depreciation amounts on the income statement and balance sheet represent. Learn why depreciation is an estimated expense that does not assist in determining the current...
. It is prepared by the company that ordered the goods/services. One copy is sent to the vendor, one is forwarded to the company’s accounts payable person or department, one copy will be kept by the person...
of the equipment was $180,000 and it is expected to be useful for producing a total of 50,000 documents. At the end of its useful life, ProServCo estimates that the equipment will be sold for $30,000. ProServCo’s...
Our Explanation of Evaluating Business Investments compares four of the techniques for reviewing potential capital expenditures. You will be introduced to accounting rate of return, payback, net present value, and...
payment would be equivalent to an annual interest rate of Select... 6% 12% 24% 36% 25. Under the allowance method, the recovery of a previously written-off accounts receivable will include a debit to which account?...
cost principle) requires that transactions be recorded at their cost. Cost is defined as the cash amount or the cash equivalent amount at the time of the transaction. Except for certain marketable investment securities...
Our Explanation of Accounts Receivable and Bad Debts Expense helps you understand the accounting for the losses associated with selling goods and providing services on credit. You will understand the impact on the...
Our Explanation of Financial Ratios includes calculations and descriptions of 15 financial ratios. As you calculate the financial ratios you will also gain a deeper understanding of a company's operations and financial...
, net 30”. This means that the customer may deduct 1% from the net amount due if the payment is made within 10 days of the date of the invoice. For instance, if a sale is made for 200 units at $15 each, the gross...
unit of product is $__________. 19. In the past year, the total amount of standard variable manufacturing overhead costs assigned to the units manufactured was $__________. 20. The total variance for the variable...
Checks received from customers that are not yet deposited U.S. Treasury note maturing in 8 months View Coaching A cash equivalent will generally have a maturity date of 3 months or less. Hence, the U.S. Treasury note...
in Accounts Payable when the invoice is paid on February 13? Select... Debit of $990 Credit of $990 Debit of $1,000 Credit of $1,000 View Coaching In accounting, cost is defined as the cash or cash equivalent amount...
. The calculation of the unit cost is goods available total costs for the year divided by the total goods available units for the year. weighted average periodic When this cost flow assumption is used, the unit cost of...
Our Explanation of Standard Costing uses an easy-to-relate to example for illustrating a manufacturer's standard costs and variances. Also provided is a chart which indicates each variance, what it tells you, and where...
Our Explanation of Inventory and Cost of Goods Sold will take your understanding to a new level. You will see how the income statement and balance sheet amounts are affected by the various inventory systems and cost flow...
sold. Under this assumption, the oldest costs will remain in inventory. The LIFO cost flow assumption can be used even if the goods that are removed from inventory are the oldest units. This is why it is a cost flow...
Our Explanation of Manufacturing Overhead gives you examples of what is included in manufacturing overhead. You will learn that these are indirect product costs and therefore are allocated to the products in order to...
will be sorted by activities. True Right! False Wrong. 11. In activity-based costing, the manufacturing overhead cost per unit will depend partially on the number of units in a batch. True Right! For example, a setup...
Our Explanation of Inventory and Cost of Goods Sold will take your understanding to a new level. You will see how the income statement and balance sheet amounts are affected by the various inventory systems and cost flow...
by the inventory turnover ratio DSI = 360 divided by 4.2 (see question #10) Days' sales in inventory = 85.7 days 12. When a company offers an early payment discount of 1/10, net 30, the cash discount is...
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