Portside Watercraft uses a job order costing system. During one month Portside purchased $173,000 of raw materials on credit; issued materials to production of $164,000, of which $24,000 were indirect. Portside incurred a factory payroll cost of $95,000, of which $25,000 was indirect labor. Portside uses a predetermined overhead rate of 170% of direct labor cost. The journal entry to record the allocation of factory wages to production is:
A. Debit Work in Process Inventory $95,000; credit Cash $95,000.
B. Debit Work in Process Inventory $95,000; credit Factory Wages Payable $95,000.
C. Debit Work in Process Inventory $70,000; debit Factory Overhead $25,000; credit Factory Wages Payable $95,000.
D. Debit Work in Process Inventory $70,000; debit Factory Overhead $25,000; credit Cash $95,000.
E. Debit Factory Wages Payable $95,000; credit Cash $95,000.
Answer: C
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Exhibit 20-4 On January 1, 2016, Average Leasing Company entered into a direct financing lease with a lessee, Lenny Company. The lease agreement calls for five equal annual payments of $75,000 at the beginning of each year with the first payment due on January 1, 2016. The leased property has an estimated residual value of $10,000, which Lenny does not guarantee. The property remains the property
of Average at the end of the lease term. Average desires a 12% rate of return. Present value factors for a 12% interest rate are as follows: Present value of $1 for n = 1 0.892857 Present value of $1 for n = 5 0.567427 Present value of an ordinary annuity for n = 5 3.604776 Present value of an annuity due for n = 5 4.037349 ? Refer to Exhibit 20-4. What is the amount of interest revenue that Average should recognize on the lease for the year ended December 31, 2016 (round the answer to the nearest dollar)? A) $37,017 B) $28,017 C) $36,336 D) $27,336
Which of the following is a correct statement regarding the Uniform Limited Liability Company Act (ULLCA)?
A) The National Conference of Commissioners on Uniform State Law issued the ULLCA. B) The ULLCA covers the formation, but not the operation and termination, of LLCs. C) The ULLCA covers the operation, but not the formation and termination, of LLCs. D) The ULLCA covers the termination, but not the formation and operation, of LLCs.
One study of culturally diverse teams found that the extent to which individuals derived their ______ from the team was positively related to both team performance and team member attitudes.
A. rewards B. focus C. commitment D. confidence
Performance plans typically feature corporate performance objectives for a time three years in the future.
Answer the following statement true (T) or false (F)