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KengaRu [80]
3 years ago
12

Harold Corporation has an existing contract to sell 200 units of product to a customer at $10 each. After the delivery of 150 un

its, the customer wants to extend the contract for an additional 100 units. The price quoted for these additional units is $9.50 each (standalone price) and they can be identified separately. The revenue recorded by Harold for the delivery of the next 15 units of product to this customer is:
A. $150.00
B. $145.00
C. $142.50
D. $147.50
Business
2 answers:
satela [25.4K]3 years ago
7 0

Answer:

C. $142.50

Explanation:

Revenue is to be measured and recognized at the prevailing contract price agreed by the parties involved.

A contract gives rise to an agreement between two or more parties for which at least one party  has an obligation to be fulfilled to another in a bid to earn revenue. This fee is known as the  transaction price.

AS such, the additional units will be supplied at the price quote of $9.50 each. If 15 items are delivered,

Revenue earned = 15 * $9.50

= $142.50

nika2105 [10]3 years ago
4 0

Answer:

C. $142.50

Explanation:

From the existing contract,

200 units for $10 each

150 units were delivered so, 10 x 150= $1500.

The customer wants to extend the contract for additional 100 units at $9.50 each.

So,what is the revenue to Harold Corporation for these additional units which cost $9.50 for the next 15 units.

Therefore, 15 x 9.50=  $142.504

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Dmitriy789 [7]

Answer:

$290

Explanation:

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The Fair labour standards act state that the minimum wage an employee should collect per hour is $7.25.

So for a 40 hour week the minimum wage for Ben Lieber is 7.25* 40= $290

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4 0
3 years ago
Graham, Inc.'s April bank statement shows an April 30 balance of $5,120. Prior to reconciliation, its books show a cash balance
Mars2501 [29]

Answer:

$5,570

Explanation:

The purpose of a bank reconciliation statement is to reconcile the difference between Cash Book balance and Bank Statement balance. Also it is used to check accuracy of Cash Book and the accuracy of Bank Statement.

Graham, Inc.'s April bank reconciliation statement is prepared as :

Graham, Inc.

Bank reconciliation statement as at April 30

Balance as per Bank Statement                 $5,120

Add outstanding lodgments                         $800

Add back error at the bank                            $115

Less unpresented checks                           ($465)

Balance as per Cash Book                        $5,570

therefore,

The reconciled cash balance at April 30 on the bank reconciliation should be $5,570.

4 0
3 years ago
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The
Ugo [173]

Answer:

$2,880

Explanation:

Given that,

Total machine-hours = 30,300

Total fixed manufacturing overhead cost = $ 575,700

Variable manufacturing overhead per machine-hour = $ 4.00

For Job T687:

Number of units in the job = 10

Total machine-hours = 30

Direct materials = $730

Direct labor cost = $1,460

Total variable overhead estimated:

= Variable manufacturing overhead per machine-hour × Total machine-hours

= $4 × 30,300

= $121,200

Total overhead estimated:

= Total variable overhead estimated + Total fixed overhead estimated

= $121,200 + $575,700

= $696,900

Predetermined overhead rate:

= Total overhead estimated ÷ Total machine-hours

= $696,900 ÷  30,300

= $23 per machine hour

Total overhead applied:

= predetermined overhead rate × Total machine hours for Job T687

= $23 × 30

= $690

Total job cost:

= Direct material + Direct labor + Total overhead

= $730 + $1,460 + $690

= $2,880

5 0
3 years ago
NBB seemed to agonize over the use of the word "folly" in its advertising campaign. What do you make of the company's struggle w
Tresset [83]

Answer:

The word folly can best be defined as the lack of good sense/judgment or foolishness.

Explanation:

Advertisements are meant to create a positive impact in the minds of the people who view them. It is actually meant to provide more information about the product and the features that will benefit potential customers. It is thus important to use the right words, which wouldn’t have any negative words involved in it.

I feel the use of the word'' folly'' is not a good one, it's not sending the right messages to people, and it's not also achieving its main purpose.

8 0
3 years ago
Cullumber Company has the following transactions during August of the current year. Aug. 1 Opens an office as a financial adviso
Flauer [41]

Answer:

  • Aug 1  Cash   $4000 Dr

                          Common Stock    $4000 C

  • Aug 4  Prepaid Insurance  $1500 Dr

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  • Aug 27  Salary Expense   $1000 Dr

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Explanation:

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  • Aug 4.  The insurance paid in advance is a current asset for the business. So, we debit the prepaid insurance account as the asset is increasing and credit the cash account as it is decreasing due to payment for insurance.

  • Aug 16.  400 received is the service revenue and as the revenue is increasing, we credit it. We are receiving cash so we debit the cash account.

  • Aug 27.  The payment of salary is an expense and as expense is increasing, we debit the salary expense account and credit the cash account as cash is decreasing.

3 0
3 years ago
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