Makes customized wedding gowns and accounts

Assignment Help Accounting Basics

Reference no: EM131136919

Bella Bridal Shop Inc. makes customized wedding gowns and accounts for these gowns on a Job Order cost accounting basis. The customer selects a pattern for the basic gown and then selects fabric and trim. Once the design and the materials have been agreed upon, a statement of estimated cost is signed by the company and by the customer.

Overhead is applied based on the number of days a gown is in process. Usually, five gowns are being worked on at a time. Therefore, each gown is charged 1/5 of a daily estimated overhead amount.

Customer Susan Renner's wedding dress took four days to complete. However, after the first three days had elapsed, Donna Lytle, a movie personality, suddenly decided to get married and ordered a very lavish gown. All other work was suspended and the work on Ms. Renner's dress was delayed six days. The final day of its construction was on the tenth day after it had been begun.

Required:

1. You are the accounting manager for Bella Bridal Shop Inc. Write a memo to the billing department. Instruct them as to the appropriate number of overhead days to charge to Ms. Renner's account and why (EXPLAIN in DETAIL).

2. What are your thoughts on how Bella Bridal Shop Inc. handled this overall situation.

Reference no: EM131136919

Questions Cloud

Unverferth manufacturing makes agricultural equipment : Unverferth Manufacturing makes agricultural equipment. It used finite element analysis (FEA) software to speed up the design cycle for its 12-row sub-soiler. Which aspect of the compression approach to innovation would the use of this software apply?

Analyzes a relationship within a film assigned : Write a 750-1000 word paper that analyzes a relationship within a film assigned by the instructor. Include the following: Using Knapp's developmental model of communication, analyze a relationship in the film that has spanned the full spectrum of s..

Prepare a bank reconciliation for delta : p9.The following information is available for Delta Company as of April 30, 2014: a. Cash on the books as of April 30 amounted to $114,175.28. Cash on the bank state- ment for the same date was $141,717.08.

What are the values expressed in barack obama : What are the values expressed in Barack Obama's "A More Perfect Union"? How do the passages from the text try to persuade you to accept these values

Makes customized wedding gowns and accounts : Bella Bridal Shop Inc. makes customized wedding gowns and accounts for these gowns on a Job Order cost accounting basis. The customer selects a pattern for the basic gown and then selects fabric and trim. Once the design and the materials have be..

What is the electric field as a function of x and y : Map out these voltage values and sketch a set of equipotential surfaces for V = -400V, -100V, 200V, 500V, 800V and 1100V.

Completing a comprehensive health screening : In this assignment, you will be completing a comprehensive health screening and history on a young adult. To complete this assignment, do the following:

Explain how your theory works view longer description : Assignment: Select a Communication Theory from the following that in your opinion best describes how you communicate. Your choices are Social Exchange Theory, Attraction Theory, Equity Theory, Relationship Dialectic Theory, Social Penetration Theo..

Northwood company manufactures basketballs : Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable costs are high, totaling $15 per ball.

User Account

All Pages