Moira Company Has Just Finished Its First Year of Operations

question 101

Essay

Moira Company has just finished its first year of operations and must decide which method to use for adjusting cost of goods sold.Because the company used a budgeted indirect-cost rate for its manufacturing operations,the amount that was allocated ($435,000)to cost of goods sold was different from the actual amount incurred ($425,000).
Ending balances in the relevant accounts were:
$$\begin{array} { l r } \text { Work-in-Process } & \$ 40,000 \\\text { Finished Coods } & 80,000 \\\text { Cost of Goods Sold } & 680,000\end{array}$$ Required:
a.Prepare a journal entry to write off the difference between allocated and actual overhead directly to Cost of Goods Sold.Be sure your journal entry closes the related overhead accounts.
b.Prepare a journal entry that prorates the write-off of the difference between allocated and actual overhead using ending account balances.Be sure your journal entry closes the related overhead accounts.

Acknowledge the importance of a mutual decision-making process in the lawyer-client relationship.

Understand the legal profession's structure, including the roles of the Canadian Bar Association and lawyer referral services.

Understand the role and limitations of duty counsel in legal matters.

Recognize the advantages of maintaining an ongoing relationship with a lawyer.

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Definitions:

Combined Present Value

A method of evaluating the overall present value of multiple future cash flows by discounting them back to their present value at a specific discount rate.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.

Beginning

The starting point or initial state of an event, process, or accounting period.

Released

Typically refers to products, information, or software being made available to the public or to a specific group.