Answer:
See explanations below.
Explanation:
1. Yes. Overhead should be applied to job W at year-end. Overhead is applied to every jobs whether or not they are completed at year end.
b. To calculate the amount of overhead to be applied to job W, we need to calculate first the overhead application rate based on direct labor cost through job V.
Direct labor cost. $8,000
Overhead applied $6,000
Overhead rate = [ Overhead applied / Direct labor cost ] × 100
= [6,000/8,000] × 100
= 75%
Overhead to be applied to job W
Direct labor cost $4,000
Overhead rate 75%
Overhead to be applied = $3,000
It therefore means that $3,000 should be applied to job W.
2. Because job W was not completed at the year end, it would then be included in the work in process inventory in the financial statements of Sigma Corporation at year end.
Answer:
$306,000
Explanation:
The formula and the computation of the cost of good sold is shown below:
Cost of goods sold = Opening balance of merchandise inventory + Purchase made - ending balance of merchandise inventory
= $85,000 + $323,000 - $102,000
= $306,000
Basically we have applied the above formula to find out the cost of goods sold
The price one bicycle is $21
Explanation:
because 100÷10=0.1
and the total is 300$
300-100=20
20+0.1=20
answer is 21
Answer:
B. Cash Flow problem
Explanation:
Cash flow problem occurs in a business when the business struggles to pay back debts. It happens when a business cannot longer cover its debt payments and operational expenses. It is very common in new and growing business, because during growth period in a business, expenses are larger than receivables.
Janis in this case is facing cash flow problems as she is not getting enough clients and receivables to pay back the expenses her equipment is bringing in. The major solution to cash flow problem for short term/temporary issues is Financing.
Answer:
A)) interest expense from loans to purchase corporate bonds and interest expense from loans to purchase stocks.
Explanation:
An investment interest expense can be regarded as any amount of interest which is been paid on proceeds of loan that is been used in purchasing investments or securities. investment interest expense can be regarded as been deductible under some particular circumstances.
It should be noted that investment interest expense include;
✓interest expense from loans to purchase corporate bonds
✓ interest expense from loans to purchase stocks.
