Joe Bought a Car from Harry's Fine Car Lot and Owed

question 18

Essay

Joe bought a car from Harry's Fine Car Lot and owed him $5,000 on the deal,which he was paying back at $500 a month under a conditional sale agreement.Harry assigned that conditional sale agreement to Ace Finance Company,and they served notice on Joe that he was to make his payments in future to them.Joe knew,however,that his deal was with Harry,and he ignored the notification and continued to make the payments to Harry.What danger does he face in these circumstances?

Perform journal entries for the manufacturing processes, from raw materials purchase to finished goods transfer.

Calculate and explain underapplied or overapplied manufacturing overhead and its adjustment.

Understand the role of the predetermined overhead rate in costing and decision-making processes.

Interpret financial outcomes related to manufacturing activities, including net operating income and the cost of goods available for sale.