# Before prorating the manufacturing overhead costs at the end of 2020, the Cost of Goods Sold and Finished Goods Inventory accounts had applied overhead costs of \$59,300 and \$38,000 in them, respectively. There was no Work-in-Process at the beginning or end of 2020. During the year, manufacturing overhead costs of \$92,000 were actually incurred. The balance in the Applied Manufacturing Overhead was \$97,300 at the end of 2020. If the under or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts, how much will be allocated to the Finished Goods Inventory

\$2069

Explanation:﻿

Given

Applied overhead costs of Goods sold = \$59,300

Applied overhead cost of finished goods = \$38,000

Overapplied Overhead = \$97,300 - \$92,000

Allocated Amount = (\$5,300 * \$38,000) (\$59,300 + \$38,000)

Allocated Amount = (\$5,300 * 38,000) (97,300)

Allocated Amount = \$2069

The over applied overhead which is allocated to finished goods inventory is \$ 1,488.54

Explanation:

Determination of over or under applied overhead

Actual factory overhead incurred                                      \$ 92,000

Allocation of over applied overhead is on basis of values in Cost of goods sold and Finished goods inventory.

Cost of goods Sold                     \$ 59,300

Finished Goods inventory          \$ 38,000

Sum of COGS and Inventory      \$ 97.300

Allocation Finished Goods inventory

\$38,000/ \$ 97,300 * \$ 5,300 = \$ 1,488,54

Allocation Cost of Goods sold

\$ 59.300/ \$ 97,300  * \$ 5,300 = \$ 3.811.46

## Related Questions

Maize Company incurs a cost of \$35 per unit, of which \$20 is variable, to make a product that normally sells for \$58. A foreign wholesaler offers to buy 5,400 units at \$30 each. Maize will incur additional costs of \$3 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Maize will realize by accepting the special order, assuming Maize has sufficient excess operating capacity.

\$37,800.00

Explanation:

Maize Company cost structure is such that \$20 out of the \$35 is a variable cost and the balance of \$15 is a fixed cost.

So the fixed cost will always be incurred whether or the special order is accepted.

So he relevant cost of accept the special order from the foreign wholesaler

is the relevant variable cost which is the variable cost of production and the additional print logo cost

Also remember that whether or not the order is accepted the fixed cost will still be incurred and besides Maize still has excess capacity

A relevant variable cost is the future cash cost that would be incurred as a result of producing and selling a unit of the product.

Relevant cost =  \$20 + \$3

= \$23

The increase in net income = (selling price - relevant cost)× unit sold

=( \$30 - \$23 ) × 5,400

\$37,800.00

Two models for department store success seem to be emerging—one with a strong retail brand approach and one as a showcase store. Investigate these two differing approaches to department store retailing and comment on the future of these concepts using the concepts defined in this chapter (target market selection, product assortment decisions, etc.).What is the meaning of showcase store?

Showcase stores are stores that display their products in a way that makes it easy for customers to determine what products are available.

Explanation:

Department stores are large stores with various assorted products and they adopt different approaches for selling their products to customers which include retail branding and showcase stores.

In a showcase store, a variety of products available in the store are displayed for customers to see, so they know what the store has available. These products that are showcased are not actually the ones sold.

The retail branding approach involves a large department store owning or controlling several smaller retail outlets with unique brands through which it sells its specific products.

A well branded retail outlet connects better with target customers and provides a more attractive option when they have to choose between competing brands.

Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on August 31, its Cash account shows a debit balance of \$22,662. Franklin's August bank statement shows \$21,837 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit \$ 7,350 Outstanding checks \$ 5,800 Bank service fees, not yet recorded by company \$ 145 The bank collected on a note receivable, not yet recorded by the company \$ 870

Explanation:

Franklin Company

Bank Reconciliation statement

Bank balance as of August 31                 \$21,837

Add: Deposit in transit                             \$ 7,350

\$29,187

Less: Outstanding check                        \$(5,800)

Cash balance as of August 31                \$22,662

Add: Collection of Note receivable       \$     870

\$23,532

Less: Bank service charge                      \$(    145)

Sheridan Company's prepaid insurance was \$192000 at December 31, 2021 and \$89600 at December 31, 2020. Insurance expense was \$62000 for 2021 and \$53300 for 2020. What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis

\$164,400

Explanation:

Calculation to determine What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis

Using this formula

Cash disbursements for insurance =2021 prepaid insurance +Insurance expense-BOY prepaid insurance

Let plug in the formula

Cash disbursements for insurance=\$192,000+ \$62,000-\$89,600

Cash disbursements for insurance=\$164,400

Therefore the amount of cash disbursements for insurance that would be reported in Sheridan's 2021 cash provided by operating activities presented on a direct basis is \$164,400

According to the video, what do Financial Analysts analyze? Check all that apply.financial records
travel distances
insurance claims
a company's competitors
fraud

A-D

-financial records

-a company’s competitors

Financial Records

A Company’s Competitors

Explanation:

I got it right on edge 2020 hope this helps!

A debt service fund of Clifton received \$100,000 from its general fund during the fiscal year ended June 30, 20X9. The cash was used to pay matured interest on Clifton's general obligation bonds, which were issued to finance construction of a new municipal building. On the statement of revenues, expenditures, and changes in fund balance prepared for the debt service fund for the year ended June 30, 20X9, the amount received from the general fund should be reported as:_____________. A. revenue.
B. a reduction of expenditures.
C.another financing source.
D. matured interest payments.