Something not explored in this problem is Beginning and Ending balances in WIP inventory. For example, if the company had beginning WIP inventory valued at $250K and Ending WIP of $202.5K, it is possible to transfer out $375K into finished goods. Without inventories, you are right, only $327.5K of costs added.
Wages are generally considered variable...ie $10/hour and employees are sent home if there is no work. Salaries are considered fixed....ie $3,000 per month, regardless of hours.
There is an answer for profs only, if you'd like to see all videos, please consider subscribing at accountingworkbook.com - if you use the promo code TRU your first month is free.
this is the most helpful thing every thank you sooo much for creating this. you are the sole reason i am passing managerial
You are the best Tony, I didn't learn at my on campus class as much as I learnt in this video you provided. God bless You :) I wish you the best :)
the important point here is to know if the overhead is over applied or under and thank you so much you clear it up for us
Hey Tony, big fan. Was wondering if you sold TONY BELL merch?
Thank you. Your videos really help students!
i wish i could like this video 1000 times
Thank out for this video. Question, how did you get goods costing $375000. Where that number number came from? Many thanks
It's given in part j.)
$170,000 DM + $150,000 DL + $75,000 applied MOH = $327,500 not $375,000. Did i miss something?
Something not explored in this problem is Beginning and Ending balances in WIP inventory. For example, if the company had beginning WIP inventory valued at $250K and Ending WIP of $202.5K, it is possible to transfer out $375K into finished goods. Without inventories, you are right, only $327.5K of costs added.
Thank you for your explanation.
do u have video on absorption costing with examples?
+piyush yadav Yep - Google my name and variable vs absorption costing and you'll find them.
Hi Sir Tony, may I ask you something? What is the difference between wages and salaries?
Wages are generally considered variable...ie $10/hour and employees are sent home if there is no work. Salaries are considered fixed....ie $3,000 per month, regardless of hours.
+Tony Bell wow thanks for your reply Sir 😊 Noted!
Whts is over n under applied ??
So do you also mark your students wrong if they put "Cost of Goods Sold" instead of "Cost of Goods Sold Expense"?
Yes.... I am very mean.
Is there answer key? Not all problems are covered by videos
There is an answer for profs only, if you'd like to see all videos, please consider subscribing at accountingworkbook.com - if you use the promo code TRU your first month is free.
Does it work for financial and managerial?
kurt inn Both!
i signed up..thanks again..but is there a pdf answer key? I don't see anything?
life saver
I hate journal entries :|
+Medeya07 Most people struggle with them at first, but you need to PRACTICE! The more you do, the better you'll get.
Hi Sir Tony, may I ask you something? What is the difference between wages and salaries?