Answer:
See below
Explanation:
Total manufacturing cost = direct material cost + direct labor cost + manufacturing overhead cost
Where
Direct material cost = Machining direct material cost + assembly direct material cost
= $425 + $175
= $600
The direct labor cost = Machining direct labor cost + Assembly direct labor cost
= $275 + $300
= $575
The machining overhead cost = Manufacturing overhead costs / Machine hours
= $280,000 / 50,000
= $5.6
So, cost = $5.6 × 50 = $280
Assembly overhead cost = Manufacturing overhead costs / direct labor hours
= $360,000 / 20,000
= $18
So, the cost = $18 × 65 = $1,170
= $600 + $575 + $280 + $1,170
= $2,625
N Force, a U.S. car manufacturing company, has expanded its business operations to China. Unlike their U.S. colleagues, many Chinese employees are reluctant to address senior colleagues by their first names because Chinese culture emphasizes respect for elders. To create an organizational culture that is common for all its employees, management at N Force headquarters has decided to assign titles to the senior staff. Which of the following methods would be best suited in China's top-down hierarchical culture to spread the message of the new organizational culture?
a. Assigning a team of junior staff to conduct a presentation on a list of code names for senior employees
b. Requesting employees to spread the message to peers
c. Requesting leaders to impart the message to employees
d. Creating a video starring junior staff to create awareness about the new organizational culture
Answer:
c. Requesting leaders to impart the message to employees
Explanation:
As the culture of an organization that suits to china in terms of elders here the best way to pass the message i.e. from the leaders to the employees
The option c would represent the same and considered to be best suited in China with respect to the top-down hierarchical culture so that the message could be spreaded
Sunland, Inc. had pre-tax accounting income of $2100000 and a tax
rate of 40% in 2018, its first year of operations. During 2018 the company had the following transactions:
Received rent from Jane, Co. for 2019 $90000
Municipal bond income $114000
Depreciation for tax purposes in excess of book depreciation $54000
Installment sales profit to be taxed in 2019 $156000
At the end of 2018, which of the following deferred tax accounts and balances exist at December 31, 2018?
a. Deferred tax asset $57600
b. Deferred tax asset $36000
c. Deferred tax liability $57600
d. Deferred tax liability $36000
Answer:
b. Deferred tax asset $36000
Explanation:
The computation of the deferred tax is shown below:
= Rent received from Jane for the year 2019 × tax rate in 2018
= $90,000 × 40%
= $36,000
Here the rent received on 2019 but the tax should be paid on 2018 so this represent the deferred tax asset
Therefore the option b is correct
Suppose the price of gasoline increases and that sport utility vehicles get poor gas mileage compared to other available cars. One would expect: Select one: a. the demand for gasoline to decrease. b. the demand for sport utility vehicles to decrease. c. the demand for sport utility vehicles to increase. d. the quantity of sport utility vehicles demanded to decrease.
Answer:
b
Explanation:
If the sport utility vehicle has a bad mileage, it means that it burns fuel quickly, so you would have to buy gasoline more frequently.
sport utility vehicle is a complement for gasoline
Complementary goods are goods that are consumed together
If the price of gasoline increases, it would become more expensive to maintain sport utility vehicle. As a result, the demand for sport utility vehicle would decrease. this would shift the demand curve for sport utility vehicle inward.
A increase in the price of gasoline would result in a decrease in the quantity demanded of gasoline and not a reduction in demand.
Suppose the town of Boone has a total population of 70,000 people. Of those, 65,000 people are employed. There are 1,000 full-time students who are not employed or actively seeking work. The rest of the people are out of work but have been actively seeking work within the past four weeks.
Instructions: In part a, round your answer to 1 decimal place. In part b, enter your answer as a whole number.
a. What is Boone’s unemployment rate?
percent
b. Suppose there are 1,000 people who are unemployed as a result of frictional unemployment and 2,000 people who are unemployed as a result of cyclical unemployment. How many people are unemployed as a result of structural unemployment?
Answer:
A. 5.8%
B. 1,000
Explanation:
Calculation for Boone’s unemployment rate
Unemployment rate=[(70,000-1,000)-65,000]/(70,000-1,000)*100
Unemployment rate=(69,000-65,000)/69,000*100
Unemployment rate=4,000/69,000*100
Unemployment rate=5.8%
Therefore Boone’s unemployment rate will be 5.8%
B. Calculation for How many people are unemployed as a result of structural unemployment
Unemployed people=[(70,000-1,000)-65,000]-1,000-2,000
Unemployed people= 4,000 - 1,000 - 2,000
Unemployed people=1,000
Therefore the numbers of people that are are unemployed as a result of structural unemployment will be 1,000
Capital assets used by an enterprise fund should be accounted for in the:_________.
a. Business-type activities journal but no depreciation on the capital assets should be recorded.
b. Enterprise fund and depreciation on the capital assets should be recorded
c. Governmental activities journal and depreciation on the capital assets should be recorded
d. Enterprise fund but no depreciation on the capital assets should be recorded
Answer:
b. Enterprise fund and depreciation on the capital assets should be recorded
Explanation:
The capital assets used by the enterprise fund should be included in the enterprise fund and the depreciation on the capital assets should be recorded.Depreciation on capital assets should be recorded based on the useful life of the asset appraisal.so correct answer b. Enterprise fund and depreciation on the capital assets should be recordedAfter changes to the copyright law in 1978, for how long is intellectual property protected?
A.
the lifetime of the artist plus 70 years
B.
100 years
C.
for the lifetime of the artist
D.
in perpetuity
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 35 billion bottles of wine were sold every year at a price of $7 per bottle. After the tax, 29 billion bottles of wine are sold every year; consumers pay $8 per bottle (including the tax), and producers receive $4 per bottle. The amount of the tax on a bottle of wine is $1 per bottle. Of this amount, the burden that falls on consumers is $ per bottle, and the burden that falls on producers is $ per bottle. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers.
Answer:
1. The amount of tax on a bottle of wine is $4.
2. The tax burden on consumers is $1.
3. The tax burden on producers is $3.
4. The effect on the tax on the quantity sold would have been smaller if the tax had been levied on producers.
False.
Explanation:
a) Data and Calculations:
Before the tax, the number of bottles of wine sold every year at $7 per bottle = 35 billion bottles
After the tax, the number of bottles of wine sold every year at $8 per bottle = 29 billion bottles
Therefore, there is a reduction of 6 billion bottles as a result of the increased price of $1 per bottle (from $7 to $8).
The price received by producers = $4 per bottle
Therefore, there is a total tax of $4 ($8 - $4)
Consumers bear $1 ($8 - $7)
Producers bear $3 ($7 - $4)
The effect of the tax would have still increased the price to $8 or more. Thus, if the tax had been levied on producers, the quantity of bottles sold would have reduced drastically.
Precision Company estimates its machine-hour requirements for the four quarters to be 35,000 hours, 20,000 hours, 15,000 hours, and 30,000 hours respectively. The variable manufacturing overhead rate is $4 per machine-hour. The fixed manufacturing overhead is $50,000 per quarter, which includes $20,000 of depreciation expense. Knowledge Check 01 What is the budgeted variable manufacturing overhead for the year
Answer:
Total estimated overhead costs for the period= $400,000
Explanation:
Giving the following information:
Total machine-hours= 35,000 + 20,000 + 15,000 + 30,000
Total machine-hours= 100,000
Predetermined variable overhead rate= $4 per machine hour
To calculate the estimated variable overhead for the period, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
4 = total estimated overhead costs for the period / 100,000
total estimated overhead costs for the period= 100,000*4
total estimated overhead costs for the period= $400,000
Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $11,000 beginning one year from today. The interest rate on the note is 6%.(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow
Answer:
$46,336
Explanation:
The amount Canliss borrowed can be determined by calculating the present value of the instalment payments
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 5 = $11,000
I = 6%
PV = $46,336
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
economics is the study of a society's financial institutions. true or false
Answer:
False
Explanation:
Economics is the study of a society's financial institutions. This statement is False.
What is Economics?Economics is a social science that examines how products and services are produced, distributed, and consumed as well as the decisions that people, corporations, governments, and nations make when allocating resources.
While macroeconomics focuses on the behavior of the economy as a whole on an aggregate level, microeconomics focuses on the decisions made by individuals and enterprises.
Hesiod, a Greek farmer, and poet who lived in the eighth century B.C. is one of the oldest economists known to have written about the necessity for efficient allocation of labor, resources, and time to combat scarcity. The first modern Western economic ideas emerged with the publication of Adam Smith's book An Inquiry Into the Nature and Causes of the Wealth of Nations in 1776.
To learn more about Economics follow the link.
https://brainly.com/question/7138202
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On December 31, 2020, Oriole Company sold for $153000 an old machine having an original cost of $266000 and a book value of $113000. The terms of the sale were as follows: $40000 down payment $56500 payable on December 31 each of the next two years The agreement of sale made no mention of interest; however, 7% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2020 rounded to the nearest dollar? (The present value of an ordinary annuity of 1 at 7% for 2 years is 1.80802.)
Answer:
$102,153.13
Explanation:
Amount payable on December 31 each of the next two years = $56,500
The PV of ordinary annuity of ($1,7%,2 years) is 1.80802
The amount of the notes receivable net of the unamortized discount = Amount Payable * PV($1, 7%, 2)
= $56,500 * 1.80802
= $102,153.13
So, the amount of the notes receivable net of the unamortized discount on December 31, 2020 will be $102,153.13.
define hedge fund economics.
Answer:
Hedge fund are financial partnerships that use pooled funds and employ different strategies to earn active returns for thier investors.. Hedge fund include long-short equity, market neutral, volatility arbitrage and merger arbitrage. They are generally only accessible to accredited investors
Assume that the CBL is not marketable at split-off but must be planed and sized at a cost of $300,000 per production run. During this process, 10,000 units are unavoidably lost and have no value. The remaining units of CBL are salable at $14 per unit. The RBL, although salable immediately at the split-off point, is coated with a tarlike preservative that costs $200,000 per production run. The RBL is then sold for $12 each. Using the net realizable value basis, how much of the completion costs should be assigned to each unit of CBL
Question
Northwest Building Products (NBP) manufactures two lumber products from a joint milling process: residential building lumber (RBL) and commercial building lumber (CBL). A standard production run incurs joint costs of $350,000 and results in 100,000 units of RBL and 90,000 units of CBL. Each RBL sells for $13 per unit and each CBL sells for $13 per unit.
Assume that the CBL is not marketable at split-off but must be planed and sized at a cost of $300,000 per production run. During this process, 10,000 units are unavoidably lost and have no value. The remaining units of CBL are salable at $14 per unit. The RBL, although salable immediately at the split-off point, is coated with a tarlike preservative that costs $200,000 per production run. The RBL is then sold for $12 each. Using the net realizable value basis, how much of the completion costs should be assigned to each unit of CBL
Answer:
Completion cost per unit of CBL=$5.82
Explanation:
Joint cost is the total cost incurred from the start of start of production process up until the split off point where two or more products result from the same process. The joint products in this case are CBL and RBL
The completion cost of CBL is the sum of the apportioned joint cost at the split-off point plus the further processing cost
Completion cost = apportioned joint cost + further processing cost
Joint cost can be apportioned using the net realizable value as follows
Total net realizable value at the split of point for the two product=
RBL =$13 × 100,000=1,300,000
CBL =$13 × 90,000=1,170,000
Total 2,470,000
Apportioned joint cost to CBL = sales value of CBL/Total sales of product× joint cost
= (1,170,000/2,470,000)*$350,000= 165,789.47
Completion cost = 165,789.47 + 300,000 = $465,789.47
Completion cost per unit of CBL = Completion cost/Expected unit
=$465,789.47/(90,000-10,000) units
=$5.82
Note that the expected units is that available for sale after normal loss as be accounted for. So, we deduct the loss units
Completion cost per unit of CBL=$5.82
Jan is a music teacher at an elementary school. She writes a play for her students to perform.
The next year, she learns that another elementary school copied and is performing the same
play. Jan never registered or published the play. Which of the following is true?
O A. Jan can sue for copyright infringement.
B
None of the above
O c.
Jan can sue for an injunction to stop the other school from performing her play
OD
Jan can't do anything since she didn't publish the play
O E.
Jan can't do anything since she didn't register her copyright
Answer:
E.
Explanation:
E. because if she report it people will say she listen to the play and copied it to make it look like her's.
Categorize each of the following items as an S-strength, W-weakness, O-opportunity, or T-threat. " WALMART SWOT ANALYSIS"
Established Name Brand
Low Prices-Low Cost Leadership
Unfair Employment Practices
Pressures Suppliers on Cost
Recession
Other big box retailers-Target
Small Towns
International Markets
Products Made in China
Product Safety
Large Purchases –Buy in Bulk
Internet Retailing
Customer Base
No Urban Locations
Health Care for Employees
Global Presence
Price Competition
Product Quality
Customer service
Distribution/Logistics System
One Stop Shop
In 15 Countries—not in Europe except for United Kingdom
Sam’s Club
Minimum Wage Laws
Rising Labor Costs in China
Healthcare Costs
12% Lower Grocery Prices
Litigation by employees
Target Superior Merchandising Capability
Community Resistance
Home Delivery of Goods
Growth of Aldi Food Chain-Europe/North America
Poor Working Conditions
Dollar stores
Online Retailers
Answer:
Established Name Brand - S - Brings in more customers
Low Prices(Low Cost Leadership ) - S - Retaining customers
Unfair Employment Practices - T - Negatively affects the brand image
Pressures Suppliers on Cost - S - Have bargaining power on suppliers
Recession - T - Can bring down customer spending
Other big box retailers(Target) - T - Competition
Small Towns - O - Not many players
International Markets - O - Growth prospects
Products Made in China - O - Lower prices
Product Safety - S - Retaining customers
Large Purchases (Buy in Bulk) - S - Cost savings
Internet Retailing - O - New growth opportunity
Customer Base - S - Large customer base
No Urban Locations - O - Opportunity to expand
Health Care for Employees - S - Employee satisfaction
Global Presence - S - Large customer base
Price Competition - O - Best in industry
Product Quality - Retaining customers
Customer service- S - Retaining customers
Distribution/Logistics System - S - Lower costs
One Stop Shop - S - Retaining customers
In 15 Countries—not in Europe except for United Kingdom - Opportunity to grow in Europe
Sam’s Club - O - Customer loyalty
Minimum Wage Laws - T - Higher costs
Rising Labor Costs in China - T - Higher costs
Healthcare Costs - T - Higher costs
12% Lower Grocery Prices - S - Cost leadership
Litigation by employees - T - Negatively affects the brand image
Target Superior Merchandising Capability - O - Competition
Community Resistance - T - Negatively affects the brand image
Home Delivery of Goods - O - Growth prospects
Growth of Aldi Food Chain-Europe/North America - T - Competition
Poor Working Conditions - T - Negatively affects the brand image
Dollar stores - T - Competition
Online Retailers - T - Competition
The management of Lanzilotta Corporation is considering a project that would require an investment of $263,000 and would last for 8 years. The annual net operating income from the project would be $99,000, which includes depreciation of $31,000. The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest
Answer: 2 years
Explanation:
Firstly, we need to calculate the annual cash inflow which will be:
= Net Operating Income + Depreciation
= $99,000 + 31,000
= $130,000
Payback period = Initial Investment / Annual cash inflow
= $263,000 / 130,000
= 2.02Years
= 2 years approximately
The payback period is 2 years.
you recently increased you're spending on marketing by 10%. you now spend 5500 per month. revenue increase by 1000 per month and you're gross margin percentage is 70%. All other expenses stayed consant. Did the increase pay off?
Answer:
Answer is yes
Explanation:
Suppose recent regulatory reforms relating to credit rating agencies are perceived to improve the reliability and accuracy of credit ratings of corporate bonds. Imagine further that you manage a corporation interested in issuing new bonds, in addition to past issues by the firm that already trade in the market. Identify one way in which your firm might lose and one way in which it might gain from these regulatory reforms. Explain.
Answer:
If the new reforms bring increase confidence of the investors then the company will have to incur lower borrowing costs as the investor will be available and vice versa.
Explanation:
Suppose that previously our company's credit rating was overrated. Due to recent regulatory reforms, my company achieved a lower credit rating and hence the investor confidence in our company dropped significantly. Now the investor is not interested to invest in my company and to urge them to invest in the company, they will be offered higher interest. If the reforms are going to impact our credit rating adversely then the borrowing cost will increase and vice versa.
Furthermore, Core Principle 3 says that the decsion making of the investor is based on the information that is readily available to him. This means if the reforms increase the access of the borrower through improved credit rating then it will be favourable for the company in terms of lower borrowing costs. If the reforms decrease the access of the borrower through depreciating credit rating then it will adversely affect the company in terms of lower borrowing costs and lower investment access.
Alpaca Corporation had revenues of $200,000 in its first year of operations. They have not collected on $20,000 of their sales, and still owe $25,000 on $70,000 of merchandise they purchased. The company had no inventory on hand at the end of the year. The company paid $15,000 in salaries. Owners invested $20,000 in the business and $20,000 was borrowed on a five-year note. The company paid $2,000 in interest that was the amount owed for the year, and paid $6,000 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%.
Compute the cash balance at the end of the first year for Alpaca Corporation.
Answer:
Closing balance $110000
Explanation:
The computation of the cash balance at the end of the first year is shown below:
Funds raised from owners $20000
Less: Funds borrowed $20,000
Collection from debtors $180,000 ($200,000 - $20,000 )
Less: Payment for merchandise $45000
Salaries paid $15000
Interest paid $2000
Insurance policy paid $6000
Income tax at 40% $42000
Closing balance $110000
Working note:
Calculation of tax paid
Sales 200000
Less: purchases 75000
salary 15000
interest 2000
insurance(50% of 6000) 3000
Income 105000
Tax at 40% 42000
Martinez Corporation engaged in the following cash transactions during 2017
Sale of land and building $191,000
Purchase of treasury stock 40,000
Purchase of land 37,000
Payment of cash dividend 95,000
Purchase of equipment 53,000
Issuance of common stock 147,000
Retirement of bonds 100,000
Compute the net cash provided (used) by investing activities
Answer:
$101,000
Explanation:
Computation of the net cash provided by investing activities
Sale of land and building
$191,000
Purchase of land
($37,000)
Purchase of equipment
($53,000)
Net cash flow from investing activities
$101,000
When crafting a business message with strong reasoning, it is important to back claims with Multiple choice question. broad generalizations. your own beliefs.. supporting facts. colorful diagrams.
Answer:
supporting facts
Explanation:
A business message with strong reasoning has as main objectives to convince a consumer to close a deal or an employee to perform certain tasks for example, the objective is always to support an idea and positively impact and convince the public of something.
Therefore, the most suitable option for a business message with strong reasoning is to use supporting facts, as the recipient of the message will feel much more transparency and security when believing in your message if it is supported by concrete facts that support it, and this can be a strong argument to strengthen and reaffirm your idea so that it is more convincing and supported.
Your broker is selling you an investment scheme in which you will receive $5,000 four years from now, $6,000 five years from now and $7,000 six years from now. The broker is asking you to pay $15,000 for this investment scheme. Your required rate of return is 12%. If you were to pay $15,000 for this scheme, what is the annual rate of return you would earn
Answer:
IRR = 3.64%
Explanation:
using a financial calculator or excel spreadsheet we can determine the IRR of this investment:
year 0 = -$15,000
year 1 = $0
year 2 = $0
year 3 = $0
year 4 = $5,000
year 5 = $6,000
year 6 = $7,000
IRR = 3.64%
Since your required rate of return is 12%, you should pay a maximum of $10,128.57
express 75 kobo as a decimal of 1 naira 50 kobo
You plan to purchase a house for $180,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 10 percent of the purchase price. You will not pay off the mortgage early. Assume the homeowner will remain in the house for the full term and ignore taxes in your analysis. a. Your bank offers you the following two options for payment. Which option should you choose? b. Your bank offers you the following two options for payments. Which option should you choose?
Answer:
choose the first one
Explanation:
get the debt over faster
Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $100 Units in beginning inventory 0 Units produced 8,800 Units sold 8,400 Units in ending inventory 400 Variable costs per unit: Direct materials $ 15 Direct labor $ 57 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 7 Fixed costs: Fixed manufacturing overhead $132,000 Fixed selling and administrative expense $ 8,500 What is the net operating income (loss) for the month under variable costing
Answer:
$10,700
Explanation:
The unit product cost = $15 + $57 + $3 = $75
Sale revenue = $100 × 8,400 = $840,000
Less :Variable cost
Variable cost of goods sold = 8,400 × $75 = $630,000
Variable selling and administrative = 8,400 × $7 = $58,800
Contribution margin = $151,200
Fixed manufacturing overhead = $132,000
Fixed selling and administrative expenses = $8,500
Net operating income = $10,700
The following transactions were completed by the company. The company completed consulting work for a client and immediately collected $6,700 cash earned. The company completed commission work for a client and sent a bill for $5,200 to be received within 30 days. The company paid an assistant $2,000 cash as wages for the period. The company collected $2,600 cash as a partial payment for the amount owed by the client in transaction b. The company paid $940 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
Answer:
The impact of each transaction on individual items of the accounting equation is as follows:
1. Cash $6,700 Consulting Revenue $6,700:
Assets (Cash +$6,700) = Liabilities + Equity (Retained Earnings $6,700)
2. Accounts Receivable $5,200 Commission Revenue $5,200:
Assets (Accounts Receivable +$5,200) = Liabilities + Equity (Retained Earnings $5,200)
3. Wages Expense $2,000 Cash $2,000:
Assets (Cash -$2,000) = Liabilities + Equity (Retained Earnings -$2,000)
4. Cash $2,600 Accounts Receivable $2,600:
Assets (Cash +$2,600 Accounts Receivable -$2,600) = Liabilities + Equity
5. Cleaning Expense $940 Cash $940:
Assets (Cash -$940) = Liabilities + Equity (Retained Earnings -$940)
Explanation:
a) Data and Calculations:
Accounts affected by each transaction:
1. Cash $6,700 Consulting Revenue $6,700
2. Accounts Receivable $5,200 Commission Revenue $5,200
3. Wages Expense $2,000 Cash $2,000
4. Cash $2,600 Accounts Receivable $2,600
5. Cleaning Expense $940 Cash $940
b) The accounting equation is Assets = Liabilities + Equity. It is the basis of accounting, debit and credit sides of accounts or the double-entry system of accounting. It is always in balance with each business transaction when they are properly recorded in the journals and correctly posted to the general ledger.
Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $133 Units in beginning inventory 950 Units produced 8,850 Units sold 8,950 Units in ending inventory 850 Variable costs per unit: Direct materials $ 29 Direct labor $ 46 Variable manufacturing overhead $ 10 Variable selling and administrative expense $ 20 Fixed costs: Fixed manufacturing overhead $ 70,800 Fixed selling and administrative expense $164,200 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What is the net operating income for the month under absorption costing
Answer:
$93
Explanation:
Product cost under absorption costing = all manufacturing overheads
= $93
This is the Cost per unit manufactured
Exercise 6-11A Record transactions using a perpetual system (LO6-5) DS Unlimited has the following transactions during August. August 6 Purchases 60 handheld game devices on account from GameGirl, Inc., for $150 each, terms 3/10, n/60. August 7 Pays $350 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GamerGirl four game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 40 game devices purchased on August 6 for $170 each to customers on account. The total cost of the 40 game devices sold is $6,070.00.
Answer and Explanation:
The journal entries are shown below:
On Aug 6
Inventory (60 × $150) $9,000
To Accounts Payable $9,000
(being inventory purchased on account is recorded)
On Aug 7
Inventory Dr $350
To Cash $350
(Being freight charges paid in cash)
On Aug 10
Accounts Payable $600 (4 × $150)
To Inventory $600
(Being returned inventory is recorded)
On Aug 14
Accounts Payable ($9,000 - $600) $8,400
To Inventory ($8,400 × 3%) $252
To Cash $8,148
(Being cash paid is recorded)
On Aug 23
Accounts Receivable ($170 × 40) $6,800
To Sales revenue $6,800
(Being sales is recorded)
Cost of goods sold $6,070
To Inventory $6,070
(Being cost is recorded)
CAN SOMEONE PLEASE ACTUALLY HELP AND NOT USE THIS JUST FOR POINTS. I REALLY NEED THE HELP.
What are ?
Business Description
Marketing Strategies
Competitive Analysis
Marketing Plan
Operations and Management Plan
Financial Plan
Direct materials $10 Direct labor $6 Variable manufacturing overhead $4 Fixed manufacturing overhead per year $220,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $6 Fixed selling and administrative expense per year $61,000 Year 1 Year 2 Units in beginning inventory 0 1,000 Units produced during the year 11,000 10,000 Units sold during the year 10,000 7,000 Units in ending inventory 1,000 4,000 The net operating income (loss) under variable costing in Year 1 is closest to:
Answer:
Results are below.
Explanation:
I will assume a selling price per unit of $60.
First, we need to calculate the total unitary variable cost:
Total unitary variable cost= direct material + direct labor + varaiboe overhead + variable selling and administrative expense
Total unitary variable cost= 10 + 6 + 4 + 6
Total unitary variable cost= $26
Now, we can structure the income statement:
Sales= 10,000*60= 600,000
Total variable cost= 10,000*26= ( 260,000)
Contribution margin= 340,000
Fixed manufacturing overhead per year= (220,000)
Fixed selling and administrative expense per year= (61,000)
Net operating income= 59,000