Answer:
1. Income Statement for Digital Vibe Manufacturing company
For the Month ended January 31
Sales 875,000
Cost of goods sold 525,000
Gross Profit 350,000
Operating Expenses:
Selling expenses 125,000
Administrative expenses 80,000
Total Operating expenses <u>205,000</u>
Net Income <u>$145,000</u>
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B.
1. Ending material inventory = Material purchased - Used material in production
= 168,500 - 149,250
= $19,250
2. Ending work in Process inventory = Material used in production + Direct labor + Factory overhead - Transferred of work in process to finished goods
= 149,250 + 360,000 + 120,000 - 600,000
=$29,250
3. Ending finished goods inventory = Transfer from work in progress - Cost of goods sold
= 600,000 - 525,000
= $75,000
Answer:
E. High-involvement.
Explanation:
High involvement management is focused on employee involvement in day-to-day running of the business. Employees are allowed to make decisions about execution of their jobs and participate in other aspects of the business. It reduces negativity an employee bfeels in performing his job because he is involved and makes decisions in the process.
This results in higher productivity and better performance of the firm by improving employee skill and motivation.
Answer:
a. True
Explanation:
ABC classification scheme refers to item analysis that is based upon the principle that there are many less critical items and few critical items by dividing on-hand inventory into three classes which is generally based upon annual dollar volume as follows:
"A items" have very tight control and accurate records
"B items" does not have a tight control and good records
"C items" have minimal records, periodic review, and and characterized by simple controls.
From the above explanation, it is therefore <u>true</u> that periodic review systems are best suited for the C category of items under the ABC classification scheme.
Answer:
15.6%
Explanation:
Investment = $3200
Net savings = $500
Investment returns in % = Net savings/Investment × 100
= 500/3200 × 100
= 0.15625 × 100
= 15.6%
Answer: Fraud is the use of misrepresentation or deception to receive money or an item of value. Kiting and Lapping are common techniques used to defraud a second party of cash.
Explanation:
Kiting: a method of defrauding banks involving drawing a check against an account which does not have any, or adequate amount. For instance, paying a check from Account A into account B and then drawing against the account from an account C in another bank, when there is actually no/insufficient money in account A, which should be paying the initial check.
Lapping: a method of defrauding an employer by modifying sales records to hide a theft. It typically involves the use of subsequent cash payments to cover the missing cash and this can be continuous unless there is a segregation of duties between employees in charge of cash collection and recording.