Accounting help please

I should also add that I chose the right answer by luck after my second fail attempt.

>>1593917
It says in the problem that overhead costs are being applied on a per unit basis on labor. Since you don't have a per hour labor you will have to use per dollar.
300/200 =1.5
since actual labor was 220 then it is 1.5 X 220 = 330 in overhead costs.
so 330+570+220 = 1120

>>1593933
so by changing the actual overhead cost from 295,000 to 330,000 I am essentially adjusting for my mistake? That is I am $35,000 short from balancing the accounts right?

>>1593937
In this case you are applying cost accounting. There is no adjusting in this case. Basically GAAP says you have to maintain your accounting method you started with and can't change it without reissuing all your previous statements. So if you start by using this cost method, you must continue.

>>1593951
You have to recall the effects of overstating inventory in one year changes the COGS in the next year. By consistently applying this method, the inventory and cogs balances in remaining years.

thanks for the help dude. also are conversion costs another way of saying the product is not finished and only until it reaches 100% you can transfer and sell it

File: FB_IMG_1473591831551.jpg (47KB, 539x960px) Image search: [Google]

47KB, 539x960px

>2016
>He uses US GAAP