Answer:
Explanation:
The journal entry is shown below:
Unrealized holding gain or loss A/c Dr $45,500
To Estimated liability on purchase commitments A/c $45,500
(Being the unrealized gain or loss is recorded)
The computation of the unrealized gain or loss is shown below:
= Purchase price of raw material - market value
= $1,024,100 - $978,600
= $45,500
Poppy co. uses a periodic inventory system. Beginning inventory on January one was understated by $30,000, and its ending inventory on December thirty-one was understated by $17,000. A purchase of merchandise costing $20,000 was incorrectly recorded as a $2,000 purchase. None of these errors were discovered until the next year. As a result, Prunedale's cost of goods sold for this year was: Understated by $31,000.
Answer:
Answer is option C i.e. ensure a cash shortage does not cause an inability to meet current obligations.
Explanation:
Debt covenants can be understood as an agreement between the lenders and the borrower. There are certain terms that are to be considered by the parties of the agreement. One such term is the maintenance of a minimum level of net working capital so that when a company/organization that has borrowed the money runs bankrupt can meet its obligation to pay back the required amount to the lender on time. Therefore, maintenance of a minimum level of net working capital is to ensure that the cash shortage does not cause an inability to meet current obligations.
Answer:
d. $1,540 F
Explanation:
The formula to compute the variable overhead efficiency variance is shown below:
= (Actual direct labor hours - standard direct labor hours) × variable overhead per hour
where,
Actual direct labor hours is 2,380
And, the standard direct labor hours equal to
= 5,200 units × 0.5
= 2,600 hours
Now put these values to the above formula
So, the value would equal to
= (2,380 hours - 2,600 hours) × $7
= 1,540 favorable
