Answer:
Physical Flow units 12000
Equivalent Units Materials 11000
Equivalent units Conversion 15000
Explanation:
The Finishing Department
First-in, First-out (FIFO) Process Costing
Equivalent Units
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Units Received 15000 100 100 15000 15000
+Ending WIP 2000 50 30 1000 600
<u>Less Beg. Inv 5000 100 30 5000 600</u>
<u>Total units 12000 11000 15000</u>
The units started and completed are transferred out units. The Beginning Work in Process is deducted to ensure first in first out. The units moved first in are transferred out first.
Answer:
A is the correct option
Explanation:
Revenue or income is recognized based on accrual concept of accounting where revenue or income is recognized when earned and expenses when incurred not when received or paid in cash.
As a result,on the 31st December Clarion Corp. has earned two months' interest on the 6-month certificate of deposit as it has invested for two months.
The correct option is A,Clarion recognizes interest revenue on 31st December ,2015 only.
It is also important to note that the since 2015 came to end the fraction of interest revenue relating to year 2015 needs to be recognized by debiting accrued income account and crediting investment on the face of the income statement
Available Options Are:
a. Cost of Goods Sold
b. Net Profit Margin
c. None of these
d. Asset Turnover
Answer:
Option B. Net Profit Margin
Explanation:
The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.
Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.
Option D is incorrect because asset turnover formula is:
Asset Turnover = Sales / Total Assets
The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.
