On January 1, DogMart Company purchased a two-year liability ...

[azncindy619]

On January 1, DogMart Company purchased a two-year liability insurance policy for 22,800 cash. The purchase was recorded to Prepaid Insurance. Prepare the January 31 adjusting entry.

Question 2

Assume a traditional costing system applies the 40,000 of overhead costs based on direct labor hours. What is the total amount of overhead cost assigned to the standard model?
 
  Trintal Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled:
 
   Number of Number of Number of
  Product Setups Components Direct Labor Hours
  Standard 15 10 750
  Deluxe 35 15 500
 
  Overhead costs 16,500 23,500
 
  A) 16,000
  B) 24,000
  C) 25,000
  D) 15,000

[ladyjames123]

Answer to Question 1

22,800/24 = 950

1/31 Insurance Expense

950
Prepaid Insurance 950

Answer to Question 2

Answer: B

[azncindy619]

YES! Correct, THANKS for helping me on my review

[shailee]

Thanks for the timely response, appreciate it