Concord, a coffee-mug producer, generally conducts over half of its business in the last month of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Concord, a coffee-mug producer, generally conducts over half of its business in the last month of the calendar year due to holiday sales. By the end of December, its fiscal year-end, Concord had accumulated Cost of Goods Sold in the amount of $251,000. Concord's business model is to maintain minimal WIP Inventory and FG Inventory, so these two accounts had balances of just $16.000 and $21,000, respectively, on December 31. Concord does hold a fair amount of RM Inventory, however, so it will be able to quickly fulfill its orders. As a result, its December 31RM Inventory (all direct materials) is $86,000. Concord utilizes a normal costing system, in its effort to have timely applied MOH information for each custom job, and its budgeted MOH rate is $2.26/direct labor hour. Budgeted MOH at the beginning of the year was $156,000; actual MOH costs incurred by the end of the year were $158,000. Actual direct labor hours used were 67,000. (a) Was Concord's MOH cost for the year under-or overapplied? By how much? MOH cost was M by $ 2 MECHI Concord, a coffee-mug producer, generally conducts over half of its business in the last month of the calendar year due to holiday sales. By the end of December, its fiscal year-end, Concord had accumulated Cost of Goods Sold in the amount of $251,000. Concord's business model is to maintain minimal WIP Inventory and FG Inventory, so these two accounts had balances of just $16.000 and $21,000, respectively, on December 31. Concord does hold a fair amount of RM Inventory, however, so it will be able to quickly fulfill its orders. As a result, its December 31RM Inventory (all direct materials) is $86,000. Concord utilizes a normal costing system, in its effort to have timely applied MOH information for each custom job, and its budgeted MOH rate is $2.26/direct labor hour. Budgeted MOH at the beginning of the year was $156,000; actual MOH costs incurred by the end of the year were $158,000. Actual direct labor hours used were 67,000. (a) Was Concord's MOH cost for the year under-or overapplied? By how much? MOH cost was M by $ 2 MECHI
Expert Answer:
Answer rating: 100% (QA)
a To determine whether Concords MOH cost for the year wa... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The substitution u=sin(x) is suitable to evaluate the integral cosx sin 3x O True O False
-
A 50-cm-long metal rod rotates about the z-axis at 90 revolutions per minute, with end 1 fixed at the origin as shown in Fig. 6-21 (P6.9). Determine the induced emf V12 if B = z2 x 104 T.
-
Which is preferable from the rock mechanics viewpoint: an elliptical, ovaloidal, or rectangular opening of W o /H o of 2 for a stress field M = 1/3? M = 0? Justify your choices.
-
Accountants for Compass Software have developed the following data from the companv's accounting records for the vear ended April 30, 2005: a. Purchase of plant assets, \($59,400 b. \) Cash receipt...
-
On January 2, 2008, two identical companies, Daggar Corp. and Bayshore Company, lease similar assets with the following characteristics: 1. The economic life is eight years 2. The term of the lease...
-
Pronghorn Lou has just won the lottery and will receive an annual payment of $100,000 every year for the next 19 years. If the annual interest rate is 11%, what is the present value of the winnings?...
-
"Part 1: The Performance Lawn Equipment database contains data needed to develop a pro forma income statement. Dealers selling PLE products all receive 18% of sales revenue for their part of doing...
-
Using the below information, if Modern Systems was to buy High Tech Systems and issue shares to pay for it the EPS of Modern Systems after the purchase would be. Price P/E Shares Outstanding Modern...
-
How do international privacy laws differ from U.S. privacy laws? What is the GDPR? Do you feel it makes users more secure or less? Why? Investigate press reports online regarding the success,...
-
What do you think of Uber's market experimentations, as well as its novel but unsuccessful efforts like its troubled leasing program? Is this "spaghetti management" (meaning throw it at the wall and...
-
Privacy laws are in a near constant state of flux. Conduct research to identify the current state of privacy law. Has major legislation recently been proposed or approved? What are the implications...
-
What is the dispute between Apple and firms like Facebook, Microsoft, and Google with respect to the latter having apps limited or blocked in the app store? Why has Apple curtailed efforts by these...
-
Many firms, including Google and Facebook, allow you to access the data they collect on you, or see how theyve classified your Internet use. Search online to see what data these or other firms have...
-
The Company has two types of services: audit and tax. Company's overhead costs consist of computer support ($240,000) and legal support ($120,000). The following information is provided on the two...
-
What is a lobbyist in US? How did this term emerge?
-
Explain the role of analysts in increasing capital market efficiency.
-
Dick's Sporting Goods is a chain of fullline sporting goods retail stores offering a broad assortment of brand name sporting goods equipment, apparel, and footwear. Dick's Sporting Goods had its...
-
Not every acquisition results in goodwill reported in the consolidated balance sheet. Describe the valuation procedures followed by the acquiring firms to determine whether any goodwill should be...
-
Redesign the feedback circuit in Figure P12.36 using MOSFETs to provide a voltage gain of \(A_{v f}=8\) and such that \(v_{o}=0\) when \(v_{i}=0\). Assume circuit parameters of \(R_{S}=1 \mathrm{k}...
-
Design a discrete transistor feedback voltage amplifier to provide a voltage gain of 50. Assume the available transistors have parameters: \(h_{F E}=120\) and \(V_{A}=\infty\). The signal voltage...
-
An op-amp current gain amplifier is shown in Figure P12.45. Assuming an ideal op-amp, design the circuit such that the load current is \(I_{o}=5 \mathrm{~mA}\) for an input current of \(I_{s}=60 \mu...
Study smarter with the SolutionInn App