Answer
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Explanation
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Answer:D - $5,000
Explanation: The company has an estimated warranty cost of 5% of sales which is $30,000. This can be recorded as a warranty payable provision in the books of the company as it gives a 3years warranty on its products. As stated in the question, out of the $30,000 warranty provision, only $5,000 was expensed in the current year leaving a bal of $25,000 for the remaining 2 years which the company has given to its customers. So only $5,000 warranty expense will be recorded in the current year.
Answer:
A. $412,000
Explanation:
Consignments($72,000) are usually owned by the consignor until the consignee sells or uses the goods. Hence the proper treatment is to record the goods as the property of Bedrock company.
Office supplies of $22,000 represents goods to be used in future. Failing to record this stock value without reporting the associated value(revenue) is not be permissible. Since you cannot record a future or expected activity, it is proper to report the stock value of $22,000 as closing inventory.
The option of becoming less ignorant and much more focused or thoughtful about your grammar.
Answer:
Fixed costs are the relatively stable, ongoing costs of operating a business that are not dependent on production levels. They include general overhead expenses such as salaries and wages, building rental payments or utility costs. Variable costs, meanwhile, are those directly related to, and that vary with, production levels, such as the cost of materials used in production or the cost of operating machinery in the process of production.
Total production costs include all the expenses of producing products at current levels. As an example, a company that makes 150 widgets has production costs for all 150 units it produces. The marginal cost of production is the cost of producing one additional unit.