Tony Inc. underapplied the MO in the amount of $3,000. When MO is closed, will C
ID: 2411002 • Letter: T
Question
Tony Inc. underapplied the MO in the amount of $3,000. When MO is closed, will Cost of 10 Goods Sold be debited or credited? The journal entry to apply factory overhead consists of a debit to 11 a credit to and Donna sets a price of $18 on her product. The variable cost per unit is $12. What is the 12 contribution margin ratio? 13 Beginning Raw Materials-Raw Material Purchases-Ending Raw Materials = what? Johnson Company has fixed costs of $1,000,000. The contribution margin per unit is $4.00 and the contribution margin ratio is.50. The breakeven point in revenue would 14 be 15 The cost of depreciation on the salesperson's car would be classified as what type of cost?Explanation / Answer
10. cost of goods sold will be debited.
the entry to record the under application of overhead :
11.A debit to Work in process account and a credit to factory overhead a/c.
the following will be the journal entry:
12.contribution margin ratio = 0.3333
contribution margin = (saleprice -variable cost) / sale price =>(18-12) / 18 =>6/18=>0.3333.
13 beggining raw materials + raw material purchases - ending raw materials = raw materials used.
14 .break even point in revenue = $2,000,000.
break even point in revenue = fixed cost / cm ratio
=>1,000,000 / 0.50
=>$2,000,000.
15. Period cost.
since it is related to time period, the depreciation on sale persons car would be classfied as a period cost.
cost of goods sold a/c 3,000 ..............To Manufacturing overhead 3,000 (to record under applied overhead)