Zipp Company manufactures two products (X and Y). The overhead costs ($84‚000) have been divided into three cost pools that use the following activity drivers: Product Number of Setups Machine Hours Packing Orders X 10 500 75 Y 10 2‚000 175 Cost per pool $9‚000 $60‚000 $15‚000 What is the allocation rate per setup using activity-based costing? a. $900. b. $450. c. $9‚000. d. $2‚100. ____ 17. The Xiang plant has two categories of overhead: maintenance
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Financial Statement Differentiation There are four different types of financial statements; they are balance sheets‚ income statements‚ retained earnings statements‚ and statements of cash flows. Each of these financial statements are important to investors‚ creditors‚ and management in various ways. This paper will provide further insight into these financial statements as well as explore‚ which of these would be of interest to investors‚ creditors‚ and management. Financial Statements
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How would International Financial Reporting Standards affect the quality of Canadian accounting information? LIMING TONG INTRODUCTION Globalization has a great impact on today’s economy. The differences of accounting regulations and practices in various countries have become a noteworthy obstacle to globalization and economic development. International Financial Reporting Standards (IFRS) mitigates global business barriers. In order to adapt to the increasingly global business environment
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Administration- MBA Semester 1 MB0041 – Financial and Management Accounting Q1. Accounting is one of the oldest‚ structured management information system. Give the meaning of accounting and book keeping? Explain the objectives of accounting? ANS. Meaning of Accounting- The systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers to the process of summarizing‚ analyzing and reporting these transactions. The financial statements that summarize a large
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respect to materials and 50 percent complete with respect to conversion costs. The cost of the units was $38‚000 ($25‚000 of material cost and $13‚000 of labor and overhead). During November‚ the company started 44‚000 units and incurred $421‚970 of material cost and $394‚880 of labor and overhead. The company completed 45‚000 units during the month‚ and 3‚000 units were in process at the end of November. The units in ending Work in Process were 85 percent complete with respect to materials and 45 percent
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Financial Accounting Final Study Guide Liabilities – Probable debts or obligations that result from past transactions Current Liabilities – Are due within one year of the balance sheet date Liquidity – The ability to pay current obligations Working capital – Current assets minus current liabilities Accrued Liabilities – Expenses that have been incurred but have not been paid at the end of the accounting period Deferred Revenues – Revenues that have been collected but not yet earned‚ they are
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ACCOUNTING SUBSTANCE OVER FORM Substance over form is an accounting concept where the entity is accounting for items according to their substance and economic reality and not merely their legal form. It is one of the key determinants of reliable information. For most transactions there will be no difference and in some cases however‚ the two diverge and the choice of how to present the transactions can give very different results. This differences occurs when an asset or liability is not recognized
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2-1 BU8101 Accounting: A User Perspective Lecture 2 The Accounting Cycle Wednesday‚ 17 August 2011 Mrs. Ho Yin Kheng S3-01C-88 Nanyang Business School Nanyang Technological University Email: yklau@ntu.edu.sg Tel: 67905694 2-2 LO 2 Lecture Outline 1. Analyzing Business Transactions 2. Recording Process a. b. c. d. e. f. The Source Document The journal The accounts Debit and Credit rule Recording process illustrated Unadjusted trial balance 3. Adjusting entries
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these proposals is “how to deal with product Z which is currently resulting in losses and thus pulling down the net profit of the entire product line”. The financial controller proposed a termination of the production of the product while the marketing manager suggested a £1 per unit reduction in the price so as to increase the demand of the product. On the other hand‚ the managing director thought that a 10% increase in both sales and activity across the board would make a difference. Furthermore
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40 a- Cost of goods manufactured = Total Cost of goods put into production + [Difference between Beginning & Ending work-in-process] = [Total Direct Cost + Factory Overhead Cost] + [25‚000-10‚000] = [Direct Material Cost + Direct Labor Cost + Factory Overhead Cost] + 15‚000 = [95‚000+110‚000+70‚000]+15‚000 = $ 290‚000 b- Cost of goods sold = Cost of goods manufactured + [Difference between Beginning & Ending finished goods inventory] = 290‚000 + [(30‚000)] = $ 260‚000
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