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The question is about accounting problems and based on ASAP form. It is about Cost Classification, HI/LO and Cost/Volume/Profit . Can you show detail information about the solution? Thank you .
For example, the first quesution is about Cost Classification.
“You have to try and find the unknowns using T accounts.Just make sure each T has a Beginning ,added, transferred out andend ing balance. Round to two decimal places.Because of water damage, you only have partial data:
Prime Costs used $500,000
Gross Profit 25%
Costs of Goods Available for sale $655,000
Direct Material purchased $240,000
Beginning Inventories:Raw Material $32,000
Work in Process $66,000
Finished Goods $62,000Sales $750,000
Direct Labour Used $280,000
Factory Overhead 42% of Conversion Costs
(Indirect labor and materials, utilities, depreciation etc were 42%of Conversion cost…that is direct labor + manufacturing overhead)
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