Sage Corporation manufactures two products with the following characteristics. Unit Contribution Margin Machine Hours Required f
1 answer:
Answer:
It should prioritize Product 2 as his contribution per machine hour is greater.
Explanation:
We will divide the contribution per unit over the amount of machine hours used to produced.
This will provide us by the contribution per Machine Hour
As Product 2 has a higher contribution per machine hoursi s better to produced with preference over Product 1
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Answer: Please Refer to Explanation
Explanation:
Please see complete question attached to this answer.
A.
As the company has not paid the salary but they recognize it is an expense, it should be credited to Salaries payable from the salary expense account.
DR Salary Expense $ 18,500
CR Salary Payable $18,500
( To record Salary Expense incurred but not paid)
B.
As the company has not paid the interest but they recognize it is an expense, it should be credited to Interest Payable from the interest expense account until it is paid.
DR Interest Expense $400
CR Interest Payable $400
( To record interest expense on loan not paid )
C.
As the company has not paid the mortgage interest but they recognize it is an expense, it should be credited to mortgage payable from the mortgage account expense account
DR Mortgage Interest Expense $1,025
CR Mortgage Interest Payable $1,025
( To recording interest expense on mortgage not paid for the year).
