Answer:
Given that,
Total prepaid insurance = $6,700
Monthly insurance:
= Total prepaid insurance ÷ 4 months
= $6,700 ÷ 4 months
= $1,675
Insurance expense for two months:
= $6,700 - $1,675
= $5,025
Therefore, the adjusting entry required on December 31 is as follows:
Insurance expense A/c Dr. $5,025
To Prepaid insurance $5,025
(To record the adjusting entry for the insurance)
Answer:A. Cost is greater than net realisable value(NRV)
Explanation:
An inventory should not be higher than the price its sale or use and this requires the comparison of inventory cost to it's ( NRV) and whichever is lower will be used as cost of inventory
NRV= Sales price less cost to completion and less estimated cost necessary to make the sales.
Answer: Option (c) is correct
From the given option the following is associated with the market development strategy: <em>Adding new features to products.</em>
Market development refers to the technique under growth strategy that visualize and establish new market segments for their products. This terminology targets non-buying individuals in targeted segments. This also targets new individuals in new segments.
Answer:
Accounting profit will be $500000
Economic profit will be $200000
Explanation:
We have given number of units produces = 200000
Cost of one unit = $10
So total cost of production = 100000×$10 = $1000000
Explicit cost = $1500000
And implicit cost = $300000
We know that accounting profit = revenue - explicit cost = $1000000-$1500000 = $500000
And economic profit = revenue - implicit cost = $1000000-$300000 = $200000
