Fasoli,Inc.
The following balance sheet items from Fasoli,Inc.are listed for December 31,2017:
Accounts payable Interest payable Accounts receivable Land Accumulated depreciation-buildings Marketable securities Merchandise inventory Accumulated depreciation-equipment Notes payable, due April 15, 2018 Office supplies Notes payable, due December 31,2021 Paid-in capital in excess of par value Buil dings Patents Capital stock, $1 par value Prepaid rent Cash Retained earnings Equipment Salaries payable Income taxes payable $32,6502,20026,500250,00040,00015,000112,90012,5006,500200251,63075,000150,00045,000200,0003,80060,990113,51084,5007,4007,500
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Required
Prepare the Assets section of the classified balance sheet.
Calculate the total amount of manufacturing overhead applied to production.
Understand how to determine if the manufacturing overhead for the year was overapplied or underapplied.
Apply overhead to jobs based on direct labor-hours.
Calculate the predetermined overhead rate based on estimated machine-hours.
Definitions:
Negligent Misrepresentation
A false statement made carelessly that induces someone to act to their detriment, creating legal liability.
Sales Puffery
Exaggerated or boastful statements about a product or service that are not meant to be taken literally and are thus not legally binding promises or warranties.
Justifiably Relied
A principle where a party's action or decision is based on another's representations or promises, perceived as reasonable.
Representation
The act of standing in for or acting on behalf of others, or the presentation of information in a particular manner.