Production cash outflow. National Beverage Company produces its products two months in advance of anticipated sales and ships to warehouse centers the month before sale. The inventory safety stock is 6% of the anticipated month's sale. Beginning inventory in October 2014 was 269,885 units. Each unit costs $0.29 to make. The average selling price is $0.67 per unit. The cost is made up of 43% labor, 48% materials, and 9% shipping (to the warehouse). The company pays for labor the month of production, shipping the month after production, and raw materials the month prior to production. What is the production cash outflow for products produced in the month of October 2014, and in what months does it occur? Note: October production is based on December anticipated sales. The fourth-quarter sales forecasts are as follows: $1,807,000 (October), $2,023,000 (November), and $2,113,000 (December). What is the production cash outflow for the month of October 2014 production? (Hint: The production cost comprises labor, raw materials, and shipping.) The labor cost is $ 383,212. (Round to the nearest dollar.) The raw materials cost is $ 427,771. (Round to the nearest dollar.) The shipping cost is $ 80,207'. (Round to the nearest dollar.) In what months does the production cash outflow for the month of October 2014 production occur? The production cash outflow for the month of October 2014 production is as follows: (Select the best response. Due to rounding, numbers below might differ from your original answers a few dollar units.) A. September for raw materials, $427,771; October for labor, $383,212; November for shipping, $80,207. O B. September for raw materials, $427,771; October for shipping, $80,207; November for labor, $383,212. O C. September for shipping, $80,207; October for raw materials, $427,771; November for labor, $383,212. O D. September for labor, $383,212; October for raw materials, $427,771; November for shipping, $80,207.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Chapter 12 Homework, Question 5. Attached is a previous similar question. Please answer the new one with the same format :)
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