Intermediate Accounting, 17e Rockford Practice Set
Intermediate Accounting, 17e Rockford Practice Set
17th Edition
ISBN: 9781119621133
Author: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Publisher: WILEY
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Chapter 18, Problem 22Q
To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or service is said to be performance obligation and it exists if a customer gets benefits from goods or service with the available resources as determined by the company.

To determine the revenue recognition.

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Jigar Industries uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $900,000, and its estimated level of activity was 40,000 direct labor-hours. The company's direct labor wage rate is $15 per hour. Actual manufacturing overhead amounted to $940,000, with actual direct labor cost of $620,000. For the year, manufacturing overhead was__. (Over-applied or Under-applied)
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Chapter 18 Solutions

Intermediate Accounting, 17e Rockford Practice Set

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Revenue recognition explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=816Q6pOaGv4;License: Standard Youtube License