The mega construction company recently switched to activity-based costing (abc) from the department allocation method. the department method allocated overhead costs at a rate of $60 per machine hour. the cost accountant for the finishing department has gathered the following data: activity cost drivers amount material handling tons of material handled $ 80 machine setups number of production runs 3,850 utilities machine hours 25 quality control number of inspections $ 400 during april, mega purchased and used $100,000 of direct materials at $20 per ton. there were eight (8) production runs using a total of 12,000 machine hours in april. the manager of the finishing department needed 12 inspections. actual overhead costs totaled $875,000 for the month. how much overhead costs were applied to the work-in-process inventory during april using traditional costing?

Prepare journal entries for each transaction and identify the financial statement impact of each entry. the financial statements are automatically generated based on the journal entries recorded. apr. 1 tanner invested $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. apr. 2 the company prepaid $9,000 cash for 12 months' rent for office space. the company's policy is record prepaid expenses in balance sheet accounts. apr. 3 the company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. payment is due within 10 days. apr. 6 the company completed services for a client and immediately received $4,000 cash. apr. 9 the company completed a $6,000 project for a client, who must pay within 30 days. apr. 13 the company paid $11,600 cash to settle the account payable created on april 3.apr. 19 the company paid $2,400 cash for the premium on a 12-month insurance policy. the company's policy is record prepaid expenses in balance sheet accounts. apr. 22 the company received $4,400 cash as partial payment for the work completed on april 9.apr. 25 the company completed work for another client for $2,890 on credit. apr. 28 the company paid $5,500 cash in dividends. apr. 29 the company purchased $600 of additional office supplies on credit. apr. 30 the company paid $435 cash for this month's utility bill.

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?

How does a business determine the markup on a product or service? by matching the closest competitor by checking online prices by calculating the profit that will keep the business going by considering how much the product is worth to the consumer