Author Question: Normal costing assigns indirect costs based on an actual indirect-cost rate. Indicate whether ... (Read 225 times)

neverstopbelieb · **on:** Jul 5, 2018

Normal costing assigns indirect costs based on an actual indirect-cost rate.

Indicate whether this statement is true or false.

Question 2

Use the accounting equation to answer each of the independent questions below.
a. At the beginning of the year, Norton Company's assets were 75,000 and its owner's equity was 38,000.Duringthe year, assets increased by 18,000 and liabilities increased by 4,000 . What was the owner's equity at theend of the year?

b. At the beginning of the year, Turpin Industries had liabilities of 44,000 and owner's equity of 66,000 . If assetsincreased by 10,000 and liabilities decreased by 5,000, what was the owner's equity at the end of the year?

Kedrick2014 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

Answer: FALSE

Answer to Question 2

a. 75,000 38,000 = 37,000 beginning of year liabilities(75,000 + 18,000) (37,000 + 4,000) = 52,000 end of year owner's equity

b. 44,000 + 66,000 = 110,000 beginning of year assets(110,000 + 10,000) (44,000 5,000) = 81,000 end of year owner's equity