Answer:
$1,450
Explanation:
Rhett made his annual gambling trip to Uwin Casino. On this trip Rhett won $250 at the slots and $1,200 at poker.
Also this year, Rhett made several trips to the racetrack, but he lost $700 on his various wagers.
The amount must Rhett include in his gross income includes that on this trip Rhett won $250 at the slots and $1,200 at poker which is $1,450
The internal Revenue Service requires that <u>''You must report all gambling winnings as "Other Income".</u> When you have gambling winnings, you may be required to pay an estimated tax on that additional income.
Answer:
The cost of ending inventory is $24314.
Explanation:
Under the average cost method, the inventory is valued at the average cost of all the inventory that is available from the start of the month and the purchases made.
The average cost of inventory can be calculated by summing up the total cost of beginning inventory and purchases and dividing it by the total number of units available for sale.
Average cost per unit = [ 480*65 + 720*68 + 360*70 ] / [480 + 720 + 360]
Average cost per unit = 67.538 rounded off to $67.54 per unit
The total inventory available for sale = 480+720+360 = 1560 units
The ending inventory in units = 1560 - 1200 = 360 units
The cost of ending inventory = 360 * 67.54 = $24314.4 rounded off to $24314
Answer:
3
Explanation:
Various educators teach rules governing the length of paragraphs. They may say that a paragraph should be 100 to 200 words long, or be no more than five or six sentences. But a good paragraph should not be measured in characters, words, or sentences. The true measure of your paragraphs should be ideas.
Answer:
A higher operating income will result under absorption costing
Explanation:
If manufacturing production exceeds units sold there will be an increase in inventory and increases in inventory cause income to be higher under absorption costing than under variable costing.
Under variable costing, as its name suggests, only variable production costs are assigned to inventory and cost of goods sold.
Under absorption costing, normal manufacturing costs are considered product costs and included in inventory.
<em>Recognize that a reduction in inventory during a period will cause the opposite effect. </em>
<em>Specifically, a portion of the contents of the beginning inventory would be transferred to expense commensurate with the decrease in inventory. </em>
<em>Since the inventory contains less under variable costing, expect expenses to be lower and income to be higher.</em>
