Which of the following is a true statement?

In the Month of March, Digby received orders of 104 units at a price of $15.00 for their product Dell. Digby uses the accrual me

Ilia_Sergeevich [38]

Answer:

$1,560 and $0

Explanation:

According to the accrual method of accounting, the revenue should be recognized when it is realized or when the sale is made not when the cash is received

Since Digby delivers 104 units in April

So for the March income statement, the amount is

= 104 units × $15

= $1,560

And, for the April income statement, it would be zero as the total units order received in March only

6 0

3 years ago

What is demand?

Svetradugi [14.3K]

C. consumers buying more of a good when its price decreases and less when its price increases

7 0

3 years ago

Read 2 more answers

Prince Company owns 104,000 of the 130,000 shares outstanding of Serf Corporation. Serf Corporation sold equipment to Prince Com

Mnenie [13.5K]

Answer:

Journal 1

At the beginning of the year

Debit : Equipment $380,000

Credit : Retained Earnings ($380,000 - $95,000) $285,000

Credit ; Accumulated Depreciation $95,000

Journal 2

During the year :

Debit : Depreciation $95,000

Credit : Accumulated depreciation $95,000

Explanation:

The sale of equipment to Prince Company is an intragroup transaction and must be eliminated from Prince Company Consolidated Financial Statements as follows :

Carrying Amount before sale :

Carrying Amount = Cost - Accumulated Depreciation

= $1,280,000 - ($1,280,000 ÷ 8)

= $1,120,000

Unrealized gain / loss =Selling Price - Carrying Amount

= $740,000 - $1,120,000

= $380,000 loss

Eliminate this loss on sale of equipment

2017

Unrealized depreciation = $380,000 ÷ 4

= $95,000

Eliminate this depreciation charge deferred at the beginning of 2018

2018

Unrealized depreciation = $380,000 ÷ 4

= $95,000

Eliminate this depreciation charge deferred during 2018

5 0

3 years ago

Devon is in the market for a new car. After having done her research, she has determined that the Jeep Grand Cherokee is the bes

nekit [7.7K]

Answer:

D) Lifestyle

Explanation:

Lifestyle can mean way of life or habit. Devon enjoys outdoor recreational activities, this can be described as her way of life, thus, her lifestyle.

If she was influenced by her occupation, she would have considered what she does before buying her car.

If she was influenced by her age, she would have considered her age when buying the car.

If she was influenced by her economic situation, she would have considered money and if the car is too expensive or cheap when buying the car.

I hope my answer helps you

4 0

3 years ago

1. BBQ sells over 200 products. Product A has sales of 400,000 units per year. The carry cost of each product is $36. The order

Mrac [35]

Answer:

a) The optimum order quantity is 789 units per order.

b) They have to reorder every 0.72 days.

2)

a) It is not a good policy.

b) The quantity per order is greater than the optimum quantity per order.

c) The order quantity should be 632 units/order

Explanation:

The carry costs are the costs incurred by the company for having the products in stock (financial, storage, etc). They are proportional to the average inventory held by the company.

The order costs are the costs associated with the purchase order. They are proportional to the amounts of purchase orders by unit of time.

a) The optimum order quantity can be calculated with the Economic Order Quantity (EOQ) formula. This formula minimizes the sum of the carry costs and the order costs.

In this formula:

EOQ: Economic Order Quantity or optimum order quantity

S: Order costs

D: Annual quantity demanded

H: Carry cost

$EOQ =\sqrt{\frac{2SD}{H} }=\sqrt{\frac{2*28*400,000}{36} }= \sqrt{622,222.22} =788.81 \approx 789$

The optimum order quantity is 789 units per order.

b) If the annual demand is 400,000 and the quantity per order is 789 units, the company will do 506.97 orders a year.

$\frac{400,000\,units/year}{789 \,units/order}= 506.97 \,orders/year$

If we take 365 days a year, we have 1.39 orders a day.

$506.97\frac{orders}{year}*\frac{1\,year}{365\,days}= 1.39 orders/day$

This means it has to reorder every 0.72 days.

2) If we apply the EOQ formula we get:

$EOQ=\sqrt{\frac{2SD}{H} }= \sqrt{\frac{2*40*75,000}{15} }= \sqrt{400,000}= 632.45$

a) It is not a good policy.

b) The quantity per order is greater than the optimum quantity per order.

c) The order quantity should be 632 units/order

8 0

3 years ago