Answer and Explanation:
1. The computation of the joint cost of each production assign to the smooth skin by relative sales values method is shown below:
Smooth skin
= $360,000 × (170,000 × $3.20) ÷ (170,000 × $3.20 + 300,000 × $5.20)
= $360,000 × $544,000 ÷ $2,104,000
= $93,080
And, for silken smooth
= $360,000 × (300,000 × $5.20) ÷ (170,000 × $3.20 + 300,000 × $5.20)
= $360,000 × $1,560,000 ÷ $2,104,000
= $266,920
Answer:
The Retained Earnings of Wolfpack Construction as of the end of the year will be $12,000.
Explanation:
Wolfpack Construction
Balance Sheets
As of End of Year
Assets $
<em>Current Assets:</em>
Cash 5,000
<em>Fixed Assets:</em>
Land 13,000
Equipment 21,000
<em>Total Assets 39,000 </em>
Liabilities and Stockholders’ Equity
<em>Current Liabilities:</em>
Accounts payable 2,000
<em>Long Term Liabilities:</em>
Notes payable 15,000
<em>Equity:
</em>
Common stock 10,000
Retained earnings 12,000
<em>Total Liabilities and Stockholder's Equity 39,000 </em>
Answer:
B. False
Explanation:
The main purpose of the joint venture is to help two or more companies so that they are in the position to gain the competitive advantage. So the potential for firm leverage that is existed would be high instead of low due to this reason also
So as per the given situation, the option b is correct
Hence, the option a is not correct
Answer:
a. It should not be accounted for until it is received.
Explanation:
When a donor make a promise to make a donation of certain amount of money to a not-profit-organization, the amount is referred to as a pledge.
There are two important variations of a pledge depending on the conditions attached to it. These variations have to be considered when the pledge is being accounted for. The following are the two variations:
1. Unconditional pledge: This occurs when a pledge is committed to by a donor without any reservation. In this case, the funds will be recorded as revenue and an account receivable by the not-for-profit organisation that is receiving it.
2. Conditional pledge: This occurs when a pledge is committed to by a donor but with a condition to be met attached to it. That is, the donor promises the organisation certain amount of money contingent upon some future event. In this case, the not-for-profit organisation will not record anything. The organisation has to wait until the condition is met. When the condition is eventually met, the pledge will then be recorded as revenue and an account receivable.
The answer:
Since a pledge of $10,000 received by the League has a condition attached to it that the donation will not be received for three years, that is, it will not be received until after three years, the pledge is considered as a conditional pledge. Therefore, the League will not record anything until after it receives the pledge.
Therefore, the Cats and Dogs League should not be accounted for until it is received.
I wish you the best.
Answer:
When there is continuous production on a single product
Explanation:
Process costing is better suit when a single product us mass produced. Or when the products have so similar production process, it cannot be differentiated from each other.
The cost of each product produced is the same for all.