The Following Are Selected Transactions for HELP-ON-US, an NFPO for 2014

question 48

Essay

The following are selected transactions for HELP-ON-US, an NFPO for 2014. On January 1, the organization purchased fixed assets at a cost of $10,000. The assets were estimated to have a useful life of 5 years with no residual value. Straight-line amortization is used. Assuming that the assets were purchased from a restricted fund contribution in the amount of $11,000, prepare the required journal entries for 2014, indicating the fund or funds to be used.

Understand the concept of overhead application rates and how they are calculated.

Identify the journal entries associated with the production process, including the movement of material, labor, and overhead.

Calculate applied overhead based on various bases such as direct labor hours, machine hours, and direct labor dollars.

Recognize the treatment of manufacturing overhead costs and the differences between actual and applied overhead.

---

Definitions:

Analytics

The systematic statistical analysis of data or statistics to identify patterns, trends, and insights.

General Motors

A multinational corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Crowdsourcing

The approach of acquiring information, content, or ideas through seeking participation from a vast number of people, mainly from those active in online communities.

Evidence-Based Management

Evidence-Based Management involves making organizational decisions based on the best available scientific evidence, rather than on personal preference or tradition.