Answer:
1. Quantity demanded decreases
2. Shift to the left
3. Quantity demanded increases
4. Shift to the right
Explanation:
If the price of a good increases, QUANTITY DEMANDED DECREASES, The demand curve SHIFT TO THE LEFT.
If the number of buyers in the market increases, QUANTITY DEMANDED INCREASES. The demand curve SHIFT TO THE RIGHT.
This is based on the law of demand which states under normal circumstances, the lower the price, the higher the quantity demanded, and the higher the price, the lower the quantity demanded.
A demand curve moves to the right when there is an increase in quantity demanded, while the demand curve also moves to the left when there is a decrease in quantity demanded.
Identify and explainthe benefits and problems associated with high economic growth
Answer:
Kindly check explanation
Explanation:
High economic growth is usually the aim of several economic policies whichnmost countries try to employ. The reason for this is no other than the numerous benefits attached to it which includes;
Increase in GDP : With growth in the economy of a country, trading within and outside these countries will rise, leading to increase in revenue earned and hence, the gross domestic product. This will pave the way for :
Infrastructural development : The development of infrastructure and standard society will be on the horizon as the economy grows. There is enough capital to embark on infrastructural development which will serve the populees
Other benefits include ; Trade and investment opportunities ; Increase in foreign direct investment and employment level will increase.
High economic growth also has it's drawbacks which include ;
Higj Immigration level ; Businesses and individuals are always on the lookout for areas with good investment opportunity in which an high income society is usually a main target. With increasing immigration, overcrowding may result.
Also, Investment cost may begin to rise, coupled with increase in foreign investment influx, the local market may be at risk of being able to compete.
Turner's has $3.8 million in net working capital. The firm has fixed assets with a book value of $48.6 million and a market value of $54.2 million. Martin amp; Sons is buying Turner’s for $61.5 million in cash. The acquisition will be recorded using the purchase accounting method. What is the amount of goodwill that Martin amp; Sons will record on its balance sheet as a result of this acquisition?
a. $0
b.$3.5 million
c. $6.6 million
d. $7.2 million
e. $9.1 million
For each of the following products and services, indicate whether it is more likely produced in a process operation or in a job order operation.
1. Beach towels
2. Bolts and nuts
3. Lawn chairs
4. Headphones
5. Designed patio
Answer:
Process operations are for when there are multiple goods to be produced. These products normally have the same specifications so can be mass produced.
This is different from Job order operation which is used when a single good is product. It is usually used for customized goods.
Process operations:
Beach towels Bolts and nuts Lawn chairs HeadphonesJob Order operation
Designed patio.The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively:
Cash $83,000 Accounts payable $208,000
Other assets 765,000 Ferris, loan 44,000
Hardwick, loan 34,000 Hardwick, capital 280,000
Saunders, capital 180,000
Ferris, capital 170,000
Total assets $882,000 Total liabilities and capital $882,000
The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $240,000. Prepare a proposed schedule of liquidation at this point in time.
Answer:
Here the answer is given as follows,
Suppose advances in computer technology lead to a surge in worker productivity. In the long run, output will ________ and the price level will ________.
Answer:
increase; decrease.
Explanation:
Technology can be defined as a branch of knowledge which typically involves the process of applying, creating and managing practical or scientific knowledge to solve problems and improve human life. Technologies are applied to many fields in the world such as medicine, information technology, cybersecurity, engineering, environmental etc.
Generally, technology has impacted the world significantly and positively as it has helped to automate processes, increased efficiency and level of output with little or no human effort.
Assuming advances in computer technology led to a surge in the level of productivity by the workers working in a company. In the long run, output will increase and the price level will decrease.
Westside Plumbing and Heating Company is offered a contract for$100,000 to provide plumbing for a new building. The labor and equip-ment costs are calculated to be $60,000 for fulfilling the contract. West-side has materials in its inventory to complete the job. The raw ma-terials initially cost the firm $50,000; however the material prices havedeclined in the interim and now cost only $37,500. Thus if thefirmchose not to accept the contract and sells the materials, they wouldincur a loss of $12,500. Material prices are not expected to go up inthe future. Should Westside accept the contract. Explain your answer.
Answer:
Westside Plumbing and Heating Company
Westside should accept the contract.
By accepting the contract at the price of $100,000, Westside incurs a total cost of $97,500 and makes a little profit of $2,500 ($100,000 - $97,500). The contract enables Westside to utilize the materials that it has in inventory instead of allowing it to deteriorate further in value.
Explanation:
a) Data and Calculations:
Contract price = $100,000
Labor and equipment costs = $60,000
Original cost of materials = $50,000
Materials market price = $37,500
Total costs to be incurred = $97,500 ($60,000 + $37,500)
Profit to be earned = $2,500 ($100,000 - $97,500)
2019 2018 2017 2016 2015 Sales $ 282,880 $ 270,800 $ 252,600 $ 234,560 $ 150,000 Cost of goods sold 128,200 122,080 115,280 106,440 67,000 Accounts receivable 18,100 17,300 16,400 15,200 9,000 Compute trend percents for the above accounts, using 2015 as the base year.
Answer:
Sales
2019 Net Sales = 188.59%
2018 Net Sales = 180.53%
2017 Net Sales = 168.4%
2016 Net Sales = 156.37%
Cost of Goods Sold
2019Cost of Goods Sold = 191.34%
2018 Cost of Goods Sold = 182.21%
2017 Cost of Goods Sold = 172.06%
2016 Cost of Goods Sold = 158.87%
Accounts Receivable:
2019 Accounts Receivable = 201.11%
2018Accounts Receivable = 192.22%
2017Accounts Receivable = 182.22%
2016Accounts Receivable = 168.89%
Explanation:
Computation forn trend percents for the above accounts, using 2015 as the base year:
FOR SALES:
2019:
Net Sales = Sales 2019 / Sales 2015*100
Net Sales = $282,880 / $150,000 * 100
Net Sales = 188.59%
2018:
Net Sales = Sales 2018 / Sales 2015*100
Net Sales = $270,800 / $150,000 * 100
Net Sales = 180.53%
2017:
Net Sales = Sales 2017 / Sales 2015*100
Net Sales = $252,600 / $150,000 * 100
Net Sales = 168.4%
2016:
Net Sales = Sales 2016 / Sales 2015*100
Net Sales = $234,560 / $150,000 * 100
Net Sales = 156.37%
COST OF GOODS SOLD:
2019:
Cost of Goods Sold = Cost of Goods Sold 2019 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $128,200 / $67,000 * 100
Cost of Goods Sold = 191.34%
2018:
Cost of Goods Sold = Cost of Goods Sold 2018 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $122,080 / $67,000 * 100
Cost of Goods Sold = 182.21%
2017:
Cost of Goods Sold = Cost of Goods Sold 2017 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $115,280 / $67,000 * 100
Cost of Goods Sold = 172.06%
2016:
Cost of Goods Sold = Cost of Goods Sold 2016 / Cost of Goods Sold 2015 *100
Cost of Goods Sold = $106,440 / $67,000 * 100
Cost of Goods Sold = 158.87%
ACCOUNTS RECEIVABLE:
2019:
Accounts Receivable = Accounts Receivable 2019 / Accounts Receivable 2015 * 100
Accounts Receivable = $18,100 / $9,000 * 100
Accounts Receivable = 201.11%
2018:
Accounts Receivable = Accounts Receivable 2018 / Accounts Receivable 2015 * 100
Accounts Receivable = $17,300 / $9,000 * 100
Accounts Receivable = 192.22%
2017:
Accounts Receivable = Accounts Receivable 2017 / Accounts Receivable 2015 * 100
Accounts Receivable = $16,400 / $9,000 * 100
Accounts Receivable = 182.22%
2016:
Accounts Receivable = Accounts Receivable 2016 / Accounts Receivable 2015 * 100
Accounts Receivable = $15,200 / $9,000 * 100
Accounts Receivable = 168.89%
Introduction to Business class is to observe the use of groups in a large manufacturing business . The students notice that most groups are arranged by reporting relationships . Bill discovers a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees . Jane finds that the executives of the company have formed a team consisting of themselves , some middle managers , and a few hourly employees to work on improving work processes and efficiency within the company . This group has been in existence for 5 years and is going strong . Jane's group appears to be what type of group ?
A ) Informal group.
B ) Formal group.
C ) Ad hoc committee or task force.
D) Self - managing group.
Answer:
B). Formal Group
Explanation:
'Formal Group' is characterized as the work groups in which people work together to ensure the effective and efficient attainment of the desired goals. In the given situation, Jane's group would be characterized as a 'formal group' because in that group, different individuals come together from different sectors or departments(executives, managers, employees) and every individual is assigned with a set of responsibilities to be fulfilled so that the desired results(enhancement of the work processes and ensuring efficiency) are attained. Thus, option B is the correct answer.
To decrease the money supply, the Federal Reserve could a. decrease the required reserve ratio. b. conduct an open market purchase of U.S. Treasury securities. c. increase the discount rate. d. forbid the reselling of U.S. Treasury securities.
Answer: c. increase the discount rate.
Explanation:
The discount rate of a country is the rate at which the central bank in that country loans money out to the financial institutions.
When this rate is low, more financial institutions will borrow money as opposed to when it is high. Banks borrowing money increases the money supply in the economy so if the Federal Reserve wants to reduce money supply, it should increase the discount rate which would dissuade banks from borrowing from the Fed thereby limiting money supply.
The fund has 49,000 shares and liabilities of $124,000. Assume the fund is sold with a front-end load of 2.5 percent. What is the offering price of the fund
Answer: $49.81
Explanation:
The offering price is calculated as:
= NAV per share / (100 - front-end load)
NAV per share = (Value - liabilities) / Number of shares
= [ ( 12,000 * 86) + (32,000 * 15) + (3,500 * 69) + (75,000 * 10) - 124,000] / 49,000 mutual fund shares
= 2,379,500 / 49,000
= $48.56
Offering price = 48.56 / (100 - 2.5%)
= $49.81
If the subtotal of the income statement debit column is $250,000, the subtotal of the income statement credit column is $300,000, and the total of the Statement of Retained Earnings debit column is $475,000, what is the beginning balance in Retained Earnings
Answer:
$425,000
Explanation:
Calculation to determine the beginning balance in Retained Earnings
First step is to prepare the Income Statement
Revenues $300,000
Less Expenses ($250,000)
Profit $50,000
Now let calculate the beginning balance in Retained Earnings
Using this formula
Beginning balance in Retained Earnings= Statement of Retained Earnings debit column -Income Statement Profit
Let plug in the formula
Beginning balance in Retained Earnings=$475,000-$50,000
Beginning balance in Retained Earnings=$425,000
Therefore the beginning balance in Retained Earnings is $425,000
A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whether more job training makes workers more productive. However, rather than having data on individual workers, you have access to data on manufacturing firms in Ohio. In particular, for each firm, you have information on hours of job training per worker (training) and number of non-defective items produced per worker (output).
Required:
a. Carefully state the ceteris paribus thought experiment underlying this policy question.
b. Does it seem likely that a firm’s decision to train its workers will be independent ofworker characteristics? What are some of those measurable and unmeasurable workercharacteristics?
c. Name a factor other than worker characteristics that can affect worker productivity.
d. If you find a positive correlation between output and training, would you haveconvincingly established that job training makes workers more productive? Explain.
Solution :
a). There is a way to state the question :
If there are two firms, firm A and firm B. Both the forms are same in all the respects but differ in only one thing, that firm A provides job training 1 hour per worker more than the number of hours of training of firm B, by how much the output of firm A would differ than the output from firm B?
b). The manufacturing firms that are located in Ohio will provide the job training based on the characteristics of workers. Some of the determining factors includes years of schooling, experience in a particular job, etc. The firms can even consider the worker's age, race or gender. The training will be provided to the less efficient workers based on their ability.
c). The amount of the capital as well as the technology that is available to the workers would affect the output of the firm. Thus the firms having the same kind of employees would have different outputs when the firms used different technology or different amount of capital.
d). No, unless the training is randomly assigned. The factors are listed above which can contribute to the finding of a positive correlation between the output and the training even when the job training does not improve the productivity of the worker.
Service Pro Corp (SPC) is preparing adjustments for its September 30 year- end. For the following transactions and events, show the September 30 adjusting entries that SPC would make
a. Prepaid Insurance shows a balance of zero at September 30, but Insurance Expense shows a debit balance of $2,340, representing the cost of a three-year fire insurance policy purchased on September 1 of the current year.
b. On August 31 of this year, Cash was debited and Service Revenue was credited for $ 1,500. The $ 1,500 related to fees for a three- month period beginning September 1 of the current year.
c. The company’s income tax rate is 20%. After making the above adjustments, SPC’s net income before tax is $ 10,000. No income tax has been paid or recorded.
Answer:
1 . Dr Prepaid Insurance $2,275
Cr Insurance Expense $2,275
2. Dr Service Revenue $1,000
Cr Deferred Revenue $1,000
3. Dr Income Tax Expense $2,000
Cr Income Tax Payable $2,000
Explanation:
Preparation of the journal entries
1 . Dr Prepaid Insurance $2,275
Cr Insurance Expense $2,275
($2,340 - $2,340 × 1 months ÷ 36 months
= $2,340 - $65
= $2,275)
2. Dr Service Revenue $1,000
Cr Deferred Revenue $1,000
($ 1,500 × 2 months ÷ 3 months
= $1,000)
3. Dr Income Tax Expense $2,000
Cr Income Tax Payable $2,000
(.20*$10,000)
A Brazilian steel manufacturer started selling certain categories of steel in the United States. However, the Brazilian manufacturer is selling the steel at a price significantly lower than it sells the same product back in Brazil. This practice may be a violation of U.S. law.
a) true
b) false
Answer:
This practice may be a violation of U.S. law.
a) true
Explanation:
To protect local industries from unfair competition from other countries, the US enforces antidumping and countervailing laws. The laws seek to investigate, prevent, and impose adequate tariffs on imported goods that are priced lower in the U.S. market than in the exporting country's market or imported goods that are subsidized by the exporting country's government.
Universal Travel Inc. borrowed $498,000 on November 1, 2021, and signed a 12-month note bearing interest at 7%. Interest is payable in full at maturity on October 31, 2022. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2021, in the amount of
Answer: $2,905
Explanation:
The total interest that will be paid on the note is:
= 498,000 * 7%
= $34,860
This interest will have to be apportioned monthly over the year. The monthly interest (which will also be the December interest) is:
= 34,860 / 12 months
= $2,905
Changes in the products for which a nation has a comparative advantage create sectoral shocks leading to an increase in frictional unemployment. a. True b. False
Answer: False
Explanation:
Frictional unemployment is a natural unemployment that results when people enter the labor force for the first time and when people move from one job to another. It is therefore not caused by sectoral shocks and every economy, even the best performing ones, will have frictional unemployment.
The unemployment that results from sectoral shocks is cyclical unemployment. This one is not natural and results from the business cycle and shocks to the economy.
explain consumptions of the principal of absolute advantage
Answer:
The Absolute Advantage Theory assumed that only bilateral trade could take place between nations and only in two commodities that are to be exchanged.
Explanation:
In economics, the principle of absolute advantage refers to the ability of a party (an individual, a firm, or a country) to produce more of a good or service than competitors while using the same amount of resources.
Sayid is the sole shareholder of an S corporation in Hattiesburg, Mississippi. At a time when his stock basis is $20,000, the corporation distributes appreciated property worth $40,000 (basis of $20,000). There is no built-in gain. Sayid's taxable gain is:
Answer:
$20,000
Explanation:
The computation of the taxable gain is shown below:
The corporate gain is
= $40,000 - $20,000
= $20,000
Now the stock basis is increased i.e.
= $20,000 + $20,000
= $40.000
Now the stock basis decreased to zero i.e.
= $40,000 - $40,000
= $0
So, here the taxable gain is of $20,000
A firm is evaluating the performance of two managers running a summer training program. One manager is in a large division with over 100 trainees, while the other is in a small division with only 15 trainees. What is one principle the firm should use in its evaluation
Answer:
Principle of equitable assessment
Explanation:
In simple words, the principle of equitable assessment refers to the concept which states that while comparing two subjects, the evaluation will be in such a way that the assessment will be fair to both the topics.
Hence, it should be made in such a way or should be made on those dimensions which consdier the differences between the two population.
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1, Cairle Company's work-in-process inventory consisted of three jobs with the following costs: Job 70 Job 71 Job 72 Direct materials $1,600 $2,000 $850 Direct labor 1,900 1,300 900 Applied overhead 1,425 975 675 During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Job 76
Direct materials $800 $1,235 $3,550 $5,000 $300 $560 $80 Direct labor 1,000 1,400 2,200 1,800 600 860 172
Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold.
Required:
1. Calculate the predetermined overhead rate based on direct labor cost.
% of direct labor cost.
2. Calculate the ending balance for each job as of August 31.
Ending Balance
Job 70 $
Job 71 $
Job 72 $
Job 73 $
Job 74 $
Job 75 $
Job 76 $
3. Calculate the ending balance of Work in Process as of August 31.
$
4. Calculate the cost of goods sold for August.
$
5. Assuming that Cairle prices its jobs at cost plus 20 percent, calculate Cairle’s sales revenue for August.
Answer:
Cairle Company
1. The predetermined overhead rate based on direct labor cost is:
= 75% of direct labor cost.
2. August 31 Ending Balances:
Job 70 $7,475
Job 71 $7,960
Job 72 $9,825
Job 73 $8,150
Job 74 $1,350
Job 75 $2,065
Job 76 $384
3. Ending balance of Work in Process, August 31:
= $9,694
4. The cost of goods sold for August = $11,890
5. Sales revenue for August = $14,268
Explanation:
a) Data and Calculations:
Work in process inventory on August 1:
Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Job 76
Direct materials $1,600 $2,000 $850
Direct labor 1,900 1,300 900
Applied overhead 1,425 975 675
Direct materials $800 $1,235 $3,550 $5,000 $300 $560 $80
Direct labor 1,000 1,400 2,200 1,800 600 860 172
Applied overhead 750 1,050 1,650 1,350 450 645 129
Total costs $7,475 $7,960 $9,825 $8,150 $1,350 $2,065 $384
Work in Process:
Job 71 $7,960
Job 74 1,350
Job 76 384
Total $9,694
Cost of goods sold:
Job 72 $9,825
Job 75 $2,065
Total $11,890
Sales revenue = $14,268 ($11,890 * 1.20)
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 28 is:
Answer:
Debit : Account Payable $1,600
Credit : Discount Received $32
Credit : Cash $1,568
Explanation:
The correct journal entry to record the payment on July 28 includes a Debit to Accounts Payable and Credit to Discount and Cash. Cash should be after returns and discount received.
On Mar 3, Lyons Company paid dividends of $1,000. Use your knowledge of what a correct journal entry should look like to identify what would be include
Answer:
Debit : Dividend $1,000
Credit : Cash $1,000
Explanation:
The Journal entry to record dividend payment include a Debit to Dividend Account and a Credit to Cash Account to depict the outflow of cash.
ohn and Lisa form a partnership to operate a restaurant. Lisa signs a two-year lease on a space for the restaurant without consulting John. Under the legal concept of ________, John and the partnership are responsible for this lease, although it was only signed by Lisa.
Answer:
General Partnership
Explanation:
The legal concept of General Partnership obliges two or more signing partners -Lisa and John in this case- to share all assets, all liabilities, and to be responsible for all matters related to the business, regardless of who signs a contract, or contracts new debt, or acquires a new asset, and so on.
So under this legal concept, even if John did not sign the lease, he is still legally responsible for it.
The Omega started the year with $650,000 in the common stock account and $1,318,407 in the additional paid-in surplus account. The end-of-year balance sheet showed $720,000 and $1,299,310 in the same two accounts, respectively. What is the cash flow to stockholders if the firm paid $68,500 in dividends
Answer:
$17,597
Explanation:
Calculation to determine the cash flow to stockholders
Using this formula
Cash flow to stockholders = Dividends paid - Common stock issued
Let plug in the formula
Cash flow to stockholders= Dividends 68,500 - (1299,310+ 720,000)- (1318407+ 650000)
Cash flow to stockholders= Dividends 68,500 - (2,019,310-1,968,407)
Cash flow to stockholders= 68,500-50,903
Cash flow to stockholders= $17,597
Therefore the cash flow to stockholders if the firm paid $68,500 in dividends is $17,597
Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $430,000 on sales of $1,300,000. The companyâs average operating assets for the year were $1,500,000 and its minimum required rate of return was 10%.
Required:Compute the companyâs residual income for the year.Average Operating Assets-Net Operating Income-Minimum required return-Residual income-
Answer: $280,000
Explanation:
Residual income can be calculated by the formula:
= Net operating income - (Average operating asset * Minimum required rate)
= 430,000 - (1,500,000 * 10%)
= 430,000 - 150,000
= $280,000
Strategic controls are largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company's competitive advantages.
A. True
B. False
Answer:
A. True
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;
I. Value.
II. Vision.
III. Mission.
Basically, strategic controls are subjective criteria that are developed by a business firm so as to verify and ensure that the business firm has implemented the appropriate strategies for the conditions in the external environment and the competitive advantages of the business firm.
An investor currently holds stock in Giggle Corporation and is considering buying stock in either Macrosoft Corporation or Faceplant Corporation. All three stocks have the same expected return and risk. The correlation between Giggle & Macrosoft is 0.25. The correlation between Giggle and Faceplant is -0.10. Portfolio risk is expected to:
a. Increase regardless of whether she buys Macrosoft or Faceplant since they are equally risky
b. Decline more when the investor buys Faceplant
c. Cannot tell from information provided – need to know risk, return and proportion of each stock in the portfolio
d. Stay the same regardless of whether Macrosoft or Faceplant is added since all three have the same risk
e. Decrease more when the investor buys Macrosoft
Answer:
b
Explanation:
Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio
Correlation is a statistical measure used to measure the relationship that exists between two variables.
1. Positive correlation : it mean that the two variables move in the same direction. If one variable increases, the other variable also increases. It increases the risk of the portfolio
For example, there should be a positive correlation between quantity supplied and price
When there is a positive correlation, the graph of the variables is upward sloping
2. Negative correlation : it mean that the two variables move in different direction. If one variable increases, the other variable decreases. It decreases the risk of the portfolio
For example, there should be a negative correlation between quantity demanded and price
When there is a negative correlation, the graph of the variables is downward sloping
3. Zero correlation : there is no relationship between the variables. It decreases the risk of the portfolio
Bailey Company incurred the following costs in manufacturing desk calculators: Direct materials $18 Indirect materials (variable) 3 Direct labor 9 Indirect labor (variable) 7 Other variable factory overhead 13 Fixed factory overhead 34 Variable selling expenses 26 Fixed selling expenses 12 During the period, the company produced and sold 2,000 units. What is the inventory cost per unit using absorption costing
Answer:
$84
Explanation:
Calculation to determine the inventory cost per unit using absorption costing
Direct materials $18
Indirect materials (variable) $3
Direct labor $9
Indirect labor (variable) $7
Other variable factory overhead $13
Fixed factory overhead $34
Inventory cost per unit $84
($18 + $3 + $9 + $7 + $13 + $34 = $84
Therefore the inventory cost per unit using absorption costing is $84
Roberto Company uses a perpetual inventory system. On December 1, the company purchased $3,300 of merchandise for cash Complete the following journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns
Journal entry worksheet 1 Roberto Company uses a perpetual inventory system. On December 1, the company purchased $3,300 of merchandise for cash. Note: Enter debits before credits General Journal Debit Credit Date Dec. 1 Record entry Clear entry View general journal
Answer:
Dr Merchandise Inventory for $3,300
Cr Cash for $3,300
Explanation:
Based on the information given assuming On December 1, the company purchased $3,300 of merchandise for cash which means that the appropriate journal entry to record these Transaction will be:
Dr Merchandise Inventory for $3,300
Cr Cash for $3,300
The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 18,600 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.90 for materials and $4.40 for labor and overhead, the total cost assigned to the ending work in process inventory was: Multiple Choice $103,044 $81,468 $135,780 $86,676
Answer:
A. $103,044
Explanation:
Ending work in progress inventory = 18,600 units
Cost of equivalent unit for material = $2.90 per unit
Ending work in progress inventory i= 100% complete for material
Total cost of inventory for material = 18,600 units * $2.90 per unit
Total cost of inventory for material = $53,940
Cost of equivalent unit for labor = $4.40
Ending work in progress = 60% complete for labor
Cost of ending work in progress = $4.40 * 60% * 18,600
Cost of ending work in progress = $49,104
Total cost of ending work in progress inventory = $53,940 + $49,104
Total cost of ending work in progress inventory = $103,044
