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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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At the end of a company's first year of operations, 2,000 units of inventory are on hand. Variable costs are $100 per unit and f

Scilla [17]

Answer:

absorption income higher by $60000

Explanation:

given data

inventory on hand = 2,000 units

Variable costs = $100 per unit

fixed manufacturing costs = $30 per unit

to find out

higher net income of what amount

solution

we know that Absorption cost and variable cost are different in their treatment of the fixed manufacturing costing

so we use of absorption cost that carry over in fix cost into ending inventory is here

absorption cost that carry over = fixed manufacturing costs × inventory on hand

absorption cost that carry over = $30 × 2000

absorption cost that carry over = $60000

so that here this amount is use for variable costing and absorption income higher by $60000

4 0

4 years ago

This is where labor and other factors of production are sold in the circular flow model of income in economic theory *it’s for e

erik [133]

Answer:

Resource Market

Explanation:

A resource market is a market from where businesses purchase inputs that can be used for production.

Resource Market is a market where labor and other factors of production are sold in the circular flow model of income in economic theory.

In Resource Market, households are the sellers and firms are the buyers.

8 0

3 years ago

A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 43.43 - 2 48.41 $ .69 3 57.33 .72 4 45.41 .

belka [17]

Answer and Explanation:

Average return = (Closing Price + Dividend - Opening Price) / Opening Price

For 1st year:

0 Return

For 2nd year:

($48.41 + $0.69 - $43.43) / $43.43 = 0.130

For 3rd year

($57.33 + $0.72 - $48.41) / $48.41 = 0.199

For 4th year:

($45.41 + $0.80 - $57.33) / $57.33 = -0.194

For 5th year

($52.33 + $0.85 - $45.41) / $45.41 = 0.171

For 6th year

($61.41 + $0.93 - $52.33) / $52.33 = 0.191

Arithmetic Return = Sum of all return / Total number of return

= [0.130 + 0.199 + (-0.194) + 0.171 + 0.191] / 5

Arithmetic Return = 9.96% $Geometric Return = [(1+r1)(1+r2)(1+r3)(1+r4)(1+r5)] ^ {(1/5)}-1$

$Geometric Return = [1.52445]^{(1/5) }-1$

Geometric Return = 1.0880 - 1

Geometric Return = 0.0880 = 8.80%

5 0

4 years ago

The base year in the consumer price index (CPI) is:_________.

astra-53 [7]

Answer:

C. a year chosen as a reference for prices in all other years.

Explanation:

Base year in the consumer price index (CPI) is a year chosen as a reference for prices in all other years.

Consumer Price Index (CPI) is a measure that is used to determine the weighted average of prices of a quantity of consumer goods and services.

Changes in the consumer price index helps to determine price changes associated with the cost of living. The consumer price index is one of the most frequently used statistics for identifying periods of inflation or deflation in an economy.

The formula used to calculate consumer price index for a product

= cost of purchasing the product in the given year ÷ cost of purchasing the product in the base year ×100

The base year or period refers to reference point in time iseda for comparison with other years or periods. It is used to measure financial and economic data.

period is a point in time used as a reference point for comparison with other periods. It is generally used as a benchmark for measuring financial or economic data.

6 0

4 years ago

Using the following information:

Bond [772]

Answer:

$9,000

Explanation:

As for the information provided,

Current allowance for bad debts = $35,000

Expected year end allowance = $40,000

Bad Debt written off = $4,000 during the period.

While writing off entry shall be:

Allowance for bad debts A/c Dr. $4,000

To Accounts Receivables $4,000

This will simply reduce the balance of allowance by $4,000

Effective balance = $35,000 - $4,000 = $31,000

As the allowance account balance is credit in nature.

Now desired year end balance = $40,000

For this entry shall be:

Bad Debt Expense A/c Dr. $9,000

To Allowance for Bad Debts $9,000

The amount is calculated as follows:

Desired amount of allowance - Balance in allowance.

$40,000 - $31,000 = $9,000

5 0

3 years ago