Answer:
$133,000
Explanation:
According to the historical cost principle, the assets should be recorded at the purchase price or the acquisition cost. In this, no other cost should be recorded like assessed value, land improvements, etc
Since in the given question the Gallatin accepted the seller counter offer i.e. $133,000 so the same is to be presented in the financial statements
hence, the land should be recorded at $133,000
Answer:
The overhead for the year will be $245,000
Applied overheads in the year are $161,894 and Underapplied overheads are $83,106 total charged to cost of goods sold will be $245,000
Explanation:
Predetermined overhead rate = total estimated overhead / estimated direct labor-hours
Predetermined overhead rate = 244,200 / 9,200
Predetermined overhead rate = 26.54 per labor hour
Overhead for the year = Predetermined overhead rate X Actual Direct Labor hours
Overhead for the year = 26.54 x 6100
Overhead for the year = 161,894.00
Underapplied overheads = 245,000 - 161,894 = 83,106.00
The overhead for the year is $162,317.
To calculate the overhead for the year, we need to use the predetermined overhead rate based on direct labor-hours. The predetermined overhead rate is calculated by dividing the total estimated overhead by the estimated direct labor-hours. In this case, the predetermined overhead rate is $244,200 / 9,200 labor-hours, which is $26.57 per labor-hour.
To find the overhead for the year, we multiply the actual direct labor-hours by the predetermined overhead rate. In this case, the actual direct labor-hours are 6,100. So the overhead for the year is 6,100 labor-hours * $26.57 per labor-hour, which equals $162,317.
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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,
Required:
a. Compute the predetermined variable overhead rate and the predetermined fixed overhead rate.
b. Compute the applied overhead for Byrd for the year.
c. Compute the total overhead variance.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard= 1 direct labor hour per unit
The total budgeted overhead at normal capacity is $1,080,000 comprised of $420,000 of variable costs and $660,000 of fixed costs.
During the current year, Byrd produced 74,000 putters, worked 98,300 direct labor hours, and incurred variable overhead costs of $133,200 and fixed overhead costs of $612,000.
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (420,000 + 660,000)/120,000
Estimated manufacturing overhead rate= $9 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9*98,300= $884,700
Finally, the total overhead variance:
Overhead variance= real overhead - allocated overhead
Overhead variance= 745,200 - 884,700
Overhead variance= 139,500 favorable
The question is incomplete. Here is the complete question.
Arden Company reported the following costs and expenses for the most recent month: Direct materials $ 79,000 Direct labor $ 41,000 Manufacturing overhead $ 19,000 Selling expenses $ 22,000 Administrative expenses $ 34,000 Required:
1) What is the total amount of product costs?
2) What is the total amount of period costs?
3) What is the total amount of conversion costs?
4) What is the total amount of prime costs?
Answer:
(1) product cost = $139,000
(2) period cost = $56,000
(3) conversion cost = $60,000
(4) prime cost = $120,000
Explanation:
(1) The total product costs can be calculated as follows.
= Direct material + direct labor + manufacturing overhead
= $79,000 + $41,000 + $19,000
= $139,000
(2) The period cost can be calculated as follows
= selling expenses + administrative expenses
= $22,000 + $34,000
= $56,000
(3) The conversion cost can be calculated as follows
= direct labor + manufacturing overhead
= $41,000 + $19,000
= $60,000
(D) The prime cost can be calculated as follows
= Direct material + direct labor
= $79,000 + $41,000
= $120,000
Answer:
Rent roll ( F )
Explanation:
In most case none of the options mentioned above is included in a property management report prepared for the owner of a property by the property management company unless the property is been managed by a private landlord directly.
A rent roll is sometimes been provided in the property management report because it provides vital information to the property owner should in case he wants to sell off his property. otherwise all reports are mostly handled by the management company.
Answer:
loss on redemption = $969800
so correct option is $969800
Explanation:
given data
Bonds Payable = $5990000
Discount on Bonds Payable = 850000
Interest Payable = 155000
bonds retired = 102
to find out
loss on redemption
solution
we get here loss on redemption that is express as
loss on redemption = amount paid in excess par value + discount bond payable ........................1
here amount paid in excess par value will be
amount paid in excess par value = Bonds Payable ( 1.02- 1)
amount paid in excess par value = $5990000 × (1.02 - 1)
amount paid in excess par value = 119800
so from equation 1
loss on redemption = $119800 + 850000
loss on redemption = $969800
so correct option is $969800