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Question - Abagail Corp. uses activity-based costing system with three activity cost pools. The following information is provided:
Costs: Wages and salaries $ 202,000
Depreciation 116,000
Utilities 114,000
Total $ 440,000
Activity Cost Pools -
Assembly Setting Up Other
Wages and salaries 0.54 30% 10%
Depreciation 0.30 45% 20%
Utilities 0.26 40% 30%
How much total cost would be allocated to the Assembly activity cost pool?
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A local church is studying the amount of offerings in an envelope from their early Sunday mornings services. The church studied 500 envelopes and found the following:
Explain the accounting treatment of material inventory errors discovered in an accounting period subsequent to the period in which the error is made.
Acc 573- Create an argument supporting that using the earnings-based valuation method yields the most accurate results. Provide support for your argument.
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The allowance account before adjustment has a debit balance of $6,000. Bad debt expense is estimated at 1/2 of 1% of net sales.
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