Answer:
Division N's purchase costs will decrease by $90,000 per year
Explanation:
Division N's purchase cost form outside vendor = total units purchased per year x unit price = 30,000 units x $15 = $450,000
if Division N obtains the product form division M with a transfer price of $12 per unit, their costs will decrease by = total units x (vendor price - transfer price) = 30,000 units x ($15 - $12) = $90,000 per year
Answer:
The initial expenditure of the company on salary is Rs. 72.000
Explanation:
First we need to express the employees ratio in letter
3A=B
2C=D
A and C being the amount of employees
B the salary before, D the salary after
They say the salary after is the slary before minus Rs. 12.000
we can express this as D=B-12.000
We know to that the salary of each employee increased 4 to 5
Then C=(5/4)A or A=(4/5)C
We can have the following equation
2((5/4)A)=B-12.000
A=(2/5)(B-12.000)
we use this in the first expression
3(2/5)(B-12.000)=B
1,2B-14400=B
0,2B=14400
B=72.000
Answer:
Bad debt expense is recorded in the same year as the credit sale.
Explanation:
Allowance method is generally refer to one of the ways for reporting the uncollectible or bad debt expense which results from a company selling the goods on credit.
This method is used for the process or procedure of uncollectible accounts receivable that records the estimate of the bad debt expense in the same accounting year to which is belongs as the sale. This method is used for adjust the accounts receivable appears on the balance sheet of the company.
Answer:
Option (D) is correct.
Explanation:
Given that,
Direct materials used in production = $250,000
Direct labor = $185,000
Manufacturing overhead = $245,500
Beginning Work in Process Inventory = $20,000
Ending Work in Process Inventory = $30,000
Cost of finished goods manufactured for the year:
= Direct materials used in production + Direct labor + Manufacturing overhead + Beginning Work in Process Inventory
= $250,000 + $185,000 + $245,500 + $20,000 - $30,000
= $670,500
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