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Nataly_w [17]
2 years ago
9

The journal entry to record the purchase of materials on account in process cost accounting is a(n): Multiple choice question. i

ncrease in assets and an increase in liabilities increase in one asset and a decrease in another asset increase in assets and a decrease in liabilities decrease in assets and a decrease in liabilities
Business
1 answer:
Lilit [14]2 years ago
7 0

The journal entry to record the purchase of materials on account in process cost accounting is an Increase in assets and an increase in liabilities. Option A. This is further explained below.

<h3>What is a journal entry?</h3>

Generally, In process cost accounting, a rise in assets and an increase in liabilities are recorded in the journal entry for the purchase of materials on account.

In conclusion, A journal entry is a kind of entry that is used in the accounting records of a company to record a transaction that occurred inside the company.

Read more about the journal entry

brainly.com/question/15889958

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Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operat
Cerrena [4.2K]

Answer:

a. 208.57 units

b. 104.29 units

Explanation:

a. The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{6,000}\times \text{\$29}}{\text{\$8}}}

= 208.57 units

b. And, the average inventory is

= Economic order quantity ÷ 2

= 208.57 units ÷ 2

= 104.29 units

We simply applied the above formulas for calculation of the economic order quantity and the average inventory and the same is shown above

5 0
3 years ago
Acquiring Company is considering the acquisition of Target Company in a stock for stock transaction in which Target Company woul
ad-work [718]

Answer:

1) 0.8333

2) 16,666

3) 2.33

4) 56.40

5) 2.2

Explanation:

Share Exchange Ratio = Price per share for Target Company / Market price per share for Acquiring Company  = $50 / $60  =  0.8333

New shares issued by Acquiring Company = Shares of Target Company x Exchange ratio (20,000 x 0.8333) = 16,666

Total shares outstanding of the combined companies = 60,000 + 16,666  = 76,666

Post-merger EPS of the combined companies = ($150,000 + $30,000)/ 76,666 = $2.35

Pre-merger EPS of Acquiring Company = $150,000 / 60,000 = $2.50

Post-merger share price = $2.35 x 24 (pre-merger P/E = $60.00/$2.50) = $56.40

Purchase price = 50 * 20,000 = 1,000,000

Interest expense = 1,000,000 * 8% = 80,000

Post-merger earnings = 150,000 + 30,000 – 80,000 * (1-0.4) = 132,000

Therefore, Post-merger EPS of the combined companies = 132,000/60,000 = 2.2

6 0
3 years ago
In an open-market operation, the Fed buys $10 million of government bonds from individual investors. If the required reserve rat
Fittoniya [83]

Answer:

$100 million ; $10 million

Explanation:

Required reserve ratio (r) = 10%

Worth of bond = $10,000,000

The smallest increase can be thought of as being the $10million generated from open market operation and could be held by the bank as reserve.

To calculate the largest increase in deposit:

Money multiplier * deposit (worth of bond)

Money multiplier = (1 / reserve ratio)

Money multiplier = (1 / 0.1) = 10

Increase in deposit = 10 * $10,000,000 = $100,000,000 ( $100 million)

6 0
3 years ago
On January 1, 2008, Pacer Company paid $1,920,000 for 60,000 shares of Lennon Co.’s voting common stock which represents a 45% i
Fittoniya [83]

Answer:

The balance in the Investment in Lennon Co.account found in the financial records of Pacer as of December 31, 2008 was $2,071,500

Explanation:

In order to calcuate the balance in the Investment in Lennon Co.account found in the financial records of Pacer as of December 31, 2008 we would have to calculate the following formula:

Net balance=Investment made+share of net income-dividend

Investment made = $1,920,000

share of net income= $670,000*45%= $301,500

dividend= $2.5*60,000= $150,000

Therefore, Net balance= $1,920,000 + $301,500 - $150,000

Net balance= $2,071,500

The balance in the Investment in Lennon Co.account found in the financial records of Pacer as of December 31, 2008 was $2,071,500

7 0
3 years ago
Suppose that you are a bicycle producer. In 2 or 3 sentences, explain why you are willing to supply the most bicycles at the hig
kirill [66]
I think the only reason that Im willing to supply the most bicycle at the higher price depends on the demand and the competition, if the competition has low and the demand is high, I would sell it in high price. I hope you are satisfied with my answer and feel free to ask for more if you have question and further clarifications 
5 0
3 years ago
Read 2 more answers
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