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3 years ago

Selected information from the accounting records of Ellison Manufacturing Company follows:

Business

1 answer:

Amanda [17]3 years ago

7 0

Answer:

b. 94.9

Explanation:

The computation of the number of days' sales in average inventories is shown below:

Day inventory outstanding = (Beginning inventory + ending inventory) ÷ 2 ÷ cost of goods sold × total number of days in a year

= ($672,000 + $576,000) ÷ 2 ÷ $2,400,000 × 365 days

= ($624,000 ÷ $2,400,000 ) × 365 days

= 94.90 days

Simply we take the average of inventory and divide from the costs of goods sold

All other information which is given is not relevant. Hence, ignored it

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What is a "grace period"? How can it help you manage a credit card wisely?

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3 years ago

During the first quarter, Sheffield Company incurs the following direct labor costs: January $53,700, February $46,100, and Marc

DIA [1.3K]

Answer:

Explanation:

The journal entries are shown below:

For January month

Work in Progress Inventory A/c Dr $37,590

To Manufacturing Overhead $37,590

(Being assigned overhead recorded)

For February month

Work in Progress Inventory A/c Dr $32,270

To Manufacturing Overhead $32,270

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For March month

Work in Progress Inventory A/c Dr $50,470

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The computation of the assigned overhead is shown below:

= Overhead × predetermined rate

This formula should be used for all three months

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4 years ago

Kristy Casey earns $39,000 per year and is paid once a month. For January, she had $188 withheld from her pay for federal income

Andru [333]

Answer:

D) $404.63

Explanation:

Kristy Casey's monthly salary = $39,000 / 12 = $3,250

Her employer's payroll tax expenses for January:

monthly salary x Social Security tax = $3,250 x 6.2% = $201.50
monthly salary x Medicare tax = $3,250 x 1.45% = $47.13
monthly salary x federal unemployment tax = $3,250 x 0.6% = $19.50
monthly salary x state unemployment tax = $3,250 x 4.2% = $136.50

total employer payroll tax expense = $201.50 + $47.13 + $19.50 + $136.50 = $404.63

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3 years ago

Fill in the missing amounts in each of the eight case situations below.Required: A. Assume that only one product is being sold i

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Answer:

a. Assume that only one product is being sold in each of the four following case situations:

Case #1 Case #2 Case #3 Case #4

Unit sold 15,000 4,000 10,000 6,000

Sales 180,000 100,000 $200,000 300,000

Var. expenses 120,000 $60,000 70,000 $210,000

Fixed expenses 50,000 32,000 $118,000 100,000

Net income $10,000 8,000 12,000 (10,000)

Contribution $4 10 13 $15

margin per unit

contribution margin per unit = sales price per unit - variable costs per unit

b. Assume that more than one product is being sold in each of the four following case situations:

Case #1 Case #2 Case #3 Case #4

Sales 500,000 400,000 $250,000 600,000

Var. expenses $400,000 260,000 $100,000 420,000

Fixed expenses $93,000 100,000 130,000 $185,000

Net income 7,000 $40,000 20,000 (5,000)

Contribution 20% 35% 60% 30%

margin ratio (percent)

contribution margin ratio = (sales revenue - variable costs) / sales revenue

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3 years ago

A common stockholder has no guarantee of receiving any cash inflows, but receives what is left after all other claims on the fir

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3 years ago