Answer:
-The technology that is available for the market.
- The nature of the products
Explanation:
Latest technology often able to produce larger amount of products with significantly lower time. This will help reduce the overall cost of production in the long run. Business owner need to consider this and calculate whether the initial investment that needed to be made to install the technology will worth the value in the long run.
Nature of the products consisted of all the characteristics that our products process. For example food products tend to not have a long shelf life unlike fashion product. This difference in characteristics influence the type of production method that business owners could implement.
For example, It is impossible for business owners to mass produce produce food products with the expectation that it can maintain their quality in the warehouse, but producer of fashion products could make that expectation.
Answer:
Credit inventory 1000 and debit COGS 1000
Explanation:
19*500=9500 <price it is recorded at currently
The rule requires lower cost - market vs. price. Since market cost is lower, you have to find out how much the ending inventory balance should be
17*500=8500
9500-8500=1000
The inventory booked should be lowered, thus requiring credit entry of 1000. Since it is a merchandise loss, it is counted towards cost of goods sold expense, thus debit
Answer:
The average collection period of the company is 18 days
Explanation:
The formula for computing the average collection period of the company is as follows:
Average Collection period = 365 / Accounts receivable turnover ratio
where
Accounts receivable turnover ratio is computed as:
Accounts receivable turnover ratio = Net credit sales / Average accounts receivable
Putting the values above:
Accounts receivable turnover ratio = $400,000 / $20,000
Accounts receivable turnover ratio = 20
Now putting the values of the Accounts receivable turnover ratio in the formula of average collection period:
Average collection period = 365 / 20
= 18.25 or 18 days
Answer and Explanation:
The preparation of the multiple-step income statement is shown below:
Net Sales $2,415,700
Less: Cost of goods sold $1,314,300
Gross profit $1,101,400
Less: Operating expense -$736070
Operating income $365,330
Other revenue
Add: Interest revenue $31,590
Other expense
Interest expense $74,650
Loss on disposal of plant assets $18,990 $93,640 -$62,050
Net income $303,280
