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alex41 [277]
3 years ago
12

In recent years, the government of Pakistan has established a support price for wheat of about $0.20 per kilogram of wheat. At t

his price, consumers are willing to purchase 10 billion kilograms of what per year, while Pakistani farmers are willing to grow and harvest 18 billion kilograms of wheat per year. The government purchases and stores all surplus wheat.
We know that

a. consumers buy 10 billion kilograms at the support price of $0.20 per kilogram and hence spend $2 billion on wheat

b. The amount of surplus wheat at the support price is 8 billion kilograms, so at the $0.20 per kilogrgram support price, the government must spend $1.6 billion to purchase this surplus wheat.

c. Pakistani wheat farmers receive a total of $3.6 billion for the wheat that they produce at the support price.



Using the above information suppose that the market clearing price of Pakistani wheat in the absence of price supports is equal to $0.10 per kilogram. At this price, the quantity of wheat dermanded is 12 billion kilograms. Under the government wheat price-support program, how much more is spent each year on wheat harvested in Pakistan than otherwise would have been spent in an unregulated market for Pakistani wheat?
Business
1 answer:
nirvana33 [79]3 years ago
7 0

Answer:

$800 million more

Explanation:

Amount spent each year under the government wheat price-support program = $0.2 × 10 billion = $2 billion

Amount spent each year in an unregulated market for Pakistani wheat = $0.1 × 12 billion = $1.2 billion

Amount spent more each year under the government wheat price-support program than otherwise would have been spent in an unregulated market = $2 billion - $1.2 billion = $800 million

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Journalizing purchase and sales transactions
Firdavs [7]

Based on the given purchase and sale transactions, the journal entries are:

Date             Account Title                                   Debit                    Credit

Feb 3      Merchandise inventory                   3,300

                            Account payable                                       3,300

Feb 7            Account payable                               900

                    Merchandise inventory                                               900

Feb 9            Merchandise inventory                    400

                      Cash                                                                               400

Feb 10           Account receivable                        4,700

                      Sales revenue                                                             4,700

Feb 10            Cost of goods                                  2,350

                       Freight out                                          370

                      Merchandise inventory                                            2,350

                      Cash                                                                             370

Feb 12             Account payable                             2,400

                       Cash                                                                          2,328

                       Merchandise inventory                                                 72

Feb 28             Cash                                                 4,606

                         Sales discount                                      94

                         Account receivable                                               4,700

<h3 /><h3>What are the journal entries?</h3>

When goods are purchased, they will be debited to the Merchandise inventory account. If they were paid for with cash, they will be credited to the cash account. On account is credited to Accounts Payable.

When goods are sold, the cost of goods sold will have to be debited to account for the cost of the purchase that is now being sold.

Because the goods were paid for in the discount period, a 3% discount would apply:

= 2,400 x (1 - 3%)
= $2,328

A 2% discount would apply to the Feb 10. sales for the same reason:
= 4,700 x (1 - 2%)

= $4,606

Find out more on discount terms at brainly.com/question/24086159.

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4 0
2 years ago
Mr. and Mrs. Jones sold their principal residence for $750,000. They had lived in their residence for 20 years, and it had an ad
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Answer:

D) $40,000

Explanation:

The Joneses qualify for a Section 121 exemption since they lived at their house for 20 years. They are exempted from paying capital gains taxes on the first $500,000 ($250,000 if single) in realized gains from selling their home.

Joneses taxable gain = $750,000 (sales price) - $210,000 (basis) - $500,000 (section 121) = $40,000

They will have to recognize only $40,000 in gains.

7 0
3 years ago
Driving consists of a ______________ process that is used hundreds of times per mile traveled
abruzzese [7]

Driving consists of a <u>"decision making" </u>process that is used hundreds of times per mile traveled .


Driving a commercial vehicle requires your complete consideration since it is a decision-making process.

These decisions turn out to be second nature as an individual has all the more driving background.  

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3 years ago
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B is the answer.

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6 0
3 years ago
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Answer and Explanation:

a. The computation of cost of ending work in process inventory for materials, conversion, and in total is shown below:-

For material = 2,080 × $15.66

= $32,572.80

For conversion = 930 × $6.23

= $5,793.90

For total cost of work in process inventory = $32,572.80 + $5,793.90

= $38,366.70

b. The computation of cost of the units completed and transferred out for materials, conversion, and in total is shown below:-

For material = 21,700 × $15.66

= $339,822

For Conversion = 21,700 × $6.23

= $135,191

For total cost of completed and transferred units = $339,822 + $135,191

= $475,013

3 0
3 years ago
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