1 Question 15 Not yet answered A manufacturing process is used to produce masses of identical units. Given the

Question

1 Question 15 Not yet answered A manufacturing process is used to produce masses of identical units. Given the following: WIP beginning (80 % Direct material, 60 % conversion) 500 units Started during current period 9,000 units WIP Ending (60 % Direct material, 40 % conversion) 1,500 units Marked out of 3.00 P Fog question Using FIFO method, the work done to date in current period in equivalent unit for material costs will be 1 ?. B I E E c? 1 2 3 tot Edge Company's salaried employees are paid biweekly. Occasionally, advances made to employees are paid back by payroll deductions. Information relating to salaries for the calendar year 2019 is as follows: 12/31/18 12/31/19 Employee advances £6,000 £9,000 Accrued salaries payable 32,500 Salaries expense during the year 325,000 Salaries paid during the year (gross) 312,500 At December 31, 2019, what amount should Edge report for accrued salaries payable? ? Answer:

Help In Homework · Accepted Answer

1 Answer: 8,500 Units Calculation: Physical flow Units in Beginning WIP 500 Units Completed and Transferred: Units Started this period 9,000 Units from Beginning WIP 500 Total Units 9,500 Units started and completed (9,000 - 1,500) 7,500 Total Units completed and transferred 8,000 Units in Ending WIP 1,500 Total Units 9,500 Equivalent units for material costs Particulars Computation Units Units from Beginning WIP 500 Units * (100% - 80%) 100 Units started and completed 7,500 Units * 100% 7,500 Units in Ending WIP 1,500 * 60% 900 Total Equivalent Units 8,500 2 Calculation of Accrued Salary for 2019: Salary expense for year 2019 £ 3,25,000 Less: Salary Already Paid ( pertaining to Current Year) (2,80,000) (Note: Calculated as Total Paid minus Opening Accrued i.e 3,12,500-32,500) Less: Opening Employee advance set off during the year (9,000) Refer Note 1 Accrued Salary as at year ended 2019 £ 36,000 Note 1: Assumed that entire opening employee advance is set off against Current Year Payable and GBP 6000 is granted as advance as on 31st December, 2019 itself and will be settled against year 2020 salary.

Why Choose Us?

0% AI Guarantee

24/7 Support

Plagiarism Free

Expert Tutors

100% Confidential

On-Time Delivery

1 Question 15 Not yet answered A manufacturing process is used to produce masses of identical units

Expert Solution

Archived Solution

Units in Beginning WIP	500	Units Completed and Transferred:
Units Started this period	9,000	Units from Beginning WIP	500
Total Units	9,500	Units started and completed (9,000 - 1,500)	7,500
		Total Units completed and transferred	8,000
		Units in Ending WIP	1,500
		Total Units	9,500

Particulars	Computation	Units
Units from Beginning WIP	500 Units * (100% - 80%)	100
Units started and completed	7,500 Units * 100%	7,500
Units in Ending WIP	1,500 * 60%	900
	Total Equivalent Units	8,500

Calculation of Accrued Salary for 2019:
Salary expense for year 2019	£ 3,25,000
Less: Salary Already Paid ( pertaining to Current Year)	(2,80,000)	(Note: Calculated as Total Paid minus Opening Accrued i.e 3,12,500-32,500)
Less: Opening Employee advance set off during the year	(9,000)	Refer Note 1
Accrued Salary as at year ended 2019	£ 36,000

Note 1: Assumed that entire opening employee advance is set off against Current Year Payable and GBP 6000 is granted as advance as on 31st December, 2019 itself and will be settled against year 2020 salary.