Answer:
$32,000
Explanation:
Cost of goods sold refers to all direct expenses incurred in producing goods and excludes all selling and indirect costs.
Cost of goods sold = Sales value - Gross Profit
Gross profit = Sales value - Direct costs - overhead costs
Gross profit per unit = $120 - ($50 + $ 20 + $10)
Gross profit per unit = $40 per unit
Gross profit in value = $40 per unit × No of units = $40 × 400 units = $16,000
Budgeted sales value = Selling price per unit × Budgeted sales units
= $120 × 400 chairs = $48000
Thus, budgeted cost of goods sold = Budgeted sales value - Gross Profit in value
= $48000 - $16000 = $32000
<u>Note</u>: While computing gross profit, selling and administrative expenses would be excluded since those are used while computing net income. Also, cost of goods sold excludes selling and administrative i.e . indirect costs.
Answer:
mmmm its only about India
Explanation:
i dont stay in India
Answer:
Ajay account will be credited with $6000. While Tim account will be debited by $6000
Answer:
Increase Rent Expense, $4,000; decrease Prepaid Rent, $4,000.
Explanation:
Since Fisher Shoe Store paid $24,000 to Acme Realty for 6 months rent beginning July 1, we will calculate monthly rent amount by:
24,000/6 = $4,000
Financial statements are prepared on July 31, so we will adjust the July rent in the adjusting entry.
We will debit the rent expense by $4,000 and credit the prepaid rent which is an asset to decrease it by an amount of $4,000.
Answer:
The answer is option B) without a carefully calculated financial plan, a firm has little chance for survival, regardless of its product or marketing effectiveness.
Explanation:
The financial plan of an organization also known as financials is a record used to determine how a business will afford to achieve its strategic goals and objectives.
The Financial Plan collates each of the activities, resources, equipment and materials that are needed to achieve these objectives and specify time frames involved.
A financial plan contains a sales forecast, expense budget, cash flow statement, income projections, asset and liabilities, depreciation table, break even analysis and pre-operating costs. It shows whether the firm is making profit or running at a loss.
It is usually prepared in a spreadsheet.
This plan is what the bank and investors will need to evaluate your business.
Without a carefully calculated financial plan, a firm has little chance for survival, regardless of its product or marketing effectiveness.
