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solmaris [256]
3 years ago
5

At the end of the year, assume the balance of Inventory is $109,225 and physical inventory on hand is $106,320. The adjusting jo

urnal entry to record shrinkage will be:_______
a. a $215,545 debit to Cost of Goods Sold and a $215,545 credit to Inventory.
b. a $109,225 debit to Inventory and a $109,225 credit to Cost of Goods Sold.
c. a $2,905 debit to Cost of Goods Sold and a $2,905 credit to Inventory.
d. a $2,905 debit to Inventory and a $2,905 credit to Cost of Goods Sold.
Business
1 answer:
xxMikexx [17]3 years ago
8 0

Answer:

The answer is C. a $2,905 debit to Cost of Goods Sold and a $2,905 credit to Inventory

Explanation:

Here, the physical inventory which is a current asset is lower than the inventory balance in the book. This can happen as a result of theft or error in filling the book.

The reality should be considered. The value of inventory($109,225) on the book balance should be reduced to the value of physical cash($106,320).

The difference should be calculated. The difference here is $2,905

So we debit cost of goods with this value and credit physical inventory on hand.

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Your college bookstore is responsible for the gathering, sorting, and dispersing of books required for a literature course on ca
Nataly [62]

The function of <em>gathering, sorting, and dispersing</em> books required for a literature course by the college bookstore is an example of <em>b. logistical functions that intermediaries perform.</em>

The bookstore is an intermediary between the students (customers) and the publishers (suppliers) of the literature book. The bookstore <em>is not performing a transactional, transitional, or facilitating function. </em>

Thus, the college bookstore performs a logistical function by managing the <em>inventory, transportation, and warehousing needs</em> of the college.

Learn more:brainly.com/question/18686811

5 0
3 years ago
Mikey W. Smitty, an emerging rapper, is getting ready to cut his first CD, called "Western Rap." He is looking for a production
Gekata [30.6K]

Answer:

(i) 900 CDs

(ii) Greater than; $1,650

Explanation:

(1) Break-event point will be when the contribution margin from total sales is equal to fixed costs,

Contribution Margin = Selling price - variable cost

                                  = $(21.5 - 9.5)

                                  = $12

Contribution Margin *Number of CDs sold = $10,800

Break-even point for Studio A = 10,800 ÷ 12

                                                    = 900 CDs

(2) Studio A would be more profitable when the extra profit earned from per unit sale of CD exceeds the extra fixed cost given in Studio A.

Extra Contribution margin in Studio A = $(12-10)

                                                               = $2

Extra Fixed cost in Studio A = $(10,800 - 7,500)

                                               = $3,300

Studio A should be chosen if sales is greater than (3300/2) = $1,650.

4 0
3 years ago
In the for-profit business world, decisions to spend money must pass a "cost versus benefit" test, but for nonprofit arts organi
Zinaida [17]

The cost versus benefit test will not act as a good factor to measure tangible achievement.      

Explanation:

Most of the Non-profit organization has a focus on welfare activities. The benefits can be influenced only by the subjective fulfillment of benefits. Executive members of all trusts are not able to calculate the benefits attained through welfare operations. Such a parameter system of identifying the beneficiaries' prospects of end-users is known as Intangible achievement.

The tangible achievement always lies in the status of invisible movements of each welfare operations. But each step of inducing the effects of cost versus benefit test does not suit to provide the effective to identify the tangible achievements.  

3 0
3 years ago
A younger client with a moderate amount of funds is considering the purchase of a home in the near-term future. For this reason,
Valentin [98]

Answer:

c) Investment in a DPP (Direct Participation Program)

Explanation:

Direct Participation Programs are a form of limited partnership. DPP has the lack of liquidity, since ownership interests are not always freely transferrable and require the approval of a general partner of the DPP. Each of the other items listed are more liquid on a short-term basis. Bonds can be sold, bond fund shares can be redeemed, equities are easily sold in the secondary market, and though CDs are not transferrable, the maximum maturity is 1 year or less, so the client would have short-term access to the funds invested.

8 0
3 years ago
Read 2 more answers
Dake Corporation's relevant range of activity is 3,200 units to 8,000 units. When it produces and sells 5,600 units, its average
Sladkaya [172]

Answer:

$22,780

Explanation:

The computation of the  total amount of indirect manufacturing cost incurred is shown below:

= Variable manufacturing overhead + fixed manufacturing overhead

where,

Variable manufacturing overhead  = Number of units produced × variable manufacturing overhead per unit

= 4,600 units × $1.30

= $5,980

Fixed manufacturing overhead  = Number of units produced and sold × fixed manufacturing overhead per unit

= 5,600 units × $3

= $16,800

So, the total indirect manufacturing cost is

= $5,980 + $16,800

= $22,780

6 0
3 years ago
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