When costs that vary with the level of output are divided by the output, you have calculated?

Several years ago, Grant County was sued by a former County employee for wrongful discharge. Although it was to be contested by

vovangra [49]

Answer:

d) Debit Expenses $50,000 and Claims payable $100,000; Credit Cash $150,000.

Explanation:

As for the information provided,

There was this law suit against the company from past several years. Where the lawyers already estimated that liability on the company will arise amounting $100,000.

Thus, on the provisional basis such claims of $100,000 would have been provided ideally.

Now, after final judgement the court had cleared about the claim which is $150,000.

Thus, entry to record such claim of $150,000 will be:

Expenses A/c Dr. $50,000

Claims Payable A/c Dr. $100,000

To Cash A/c $150,000

7 0

3 years ago

The type of letter of credit that can be split up between many suppliers, each able to present their own documents for payment a

Nastasia [14]

Letter of credit that can be split up between many suppliers, each able to present their own documents for payment and allowing the trader to take his profits from the balance of the credit, is called Transferable Letter of Credit .

Explanation:

Transferable Letter of Credit is a credit document in which the party can transfer the credit in full or partial to another beneficiary.

A transferable credit letter that enables a receiver to further pass all or part of the payment to another supplier in the chain or to some other receiver. This usually occurs when the recipient is merely a conduit to the actual supplier. Such LC allows the beneficiary to have their records, but to further pass the credit.

5 0

3 years ago

Read 2 more answers

Which of the following influences the price elasticity of demand?

daser333 [38]

Explanation:

1. percentage of a consumer's budget

7 0

2 years ago

Read 2 more answers

The balance in the office supplies account on January 1 was $7,362, the supplies purchased during January were $3,421, and the s

Zigmanuir [339]

Answer:

d.$8,327

Explanation:

The computation of the amount used in the adjusting entry is shown below:

= Beginning balance of office supplies + supplies purchased - ending balance of office supplies

= $7,362 + $3,421 - $2,456

= $8,327

The adjusting entry is

Supplies expense $8,327

To Supplies A/c $8,327

(Being the supplies expense is recorded)

For recording this transaction we debited the supplies expense as it increased the expense account and credited the supplies account as it reduced the asset account

7 0

3 years ago

Job Cost Journal Entries and T Accounts

koban [17]

Answer:

Cost of goods sold = $1,224,000

Cost of goods manufactured = $1,200,000

Direct labor incurred = $360,000

Direct material used = $430,000

Indirect material used = $96,000

Total materials purchased = $556,000

Explanation:

Materials Inv. WIP Inv. Finished Goods Inv.

Beginning inventory $40,000 $50,000 $80,000

Ending inventory $70,000 $60,000 $56,000

Total sales were $2,000,000, on which the company earned a 40% gross profit.

Redwood uses a predetermined manufacturing overhead rate of 110% of direct labor costs. Manufacturing overhead applied was $396,000. Exclusive of indirect material used, total manufacturing overhead incurred was $300,000; it was under-applied by $24,000.

COGS = $2,000,000 x 60% = $1,200,000 + $24,000 of underapplied overhead = $1,224,000

COGM = COGS + ending finished goods inventory - beginning finished goods inventory = $1,224,000 + $56,000 - $80,000 = $1,200,000

Direct labor = applied overhead / predetermined overhead rate = $396,000 / 1.1 = $360,000

Direct materials = COGM - beginning WIP - overhead applied - underapplied overhead - direct labor + ending WIP = $1,200,000 - $50,000 - $396,000 - $24,000 - $360,000 + $60,000 = $430,000

Indirect materials = overhead - $300,000 = $396,000 - $300,000 = $96,000

Total materials purchased = ending materials + direct materials used + indirect materials - beginning materials = $70,000 + $430,000 + $96,000 - $40,000 = $556,000

6 0

3 years ago