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irina1246 [14]
3 years ago
8

Blossom Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 470 pounds of a spice mixture at $2.35 per p

ound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had risen to $2.73 per pound. In 2020, Blossom should recognize:______.
A. No gain or loss.
B. A gain of $178.60.
C. A loss of $1104.50.
D. A loss of $178.60.
Business
2 answers:
Sveta_85 [38]3 years ago
7 0

Answer:

No gain or loss.

Explanation:

Given:

Amount of spice mixture = 470 pound

Current price = $2.35 per pound

Future price = $2.73 per pound

Computation:

We know that, Future price of spice mixture is higher than current price of spices.

But contract price is fixed at $2.35.

Therefore, no gain or loss will be recognized.

Rudiy273 years ago
5 0

Answer:

A. No gain or loss.

Explanation:

Relevant data provided as per the question is shown below:-

Spice mixture = $2.73 price per pound

Initial contract price = $2.35

Here the spice mixture is $2.73 price per pound as on 31 December 2020 is higher than the initial contract price $2.35, so no gain or loss should be recognized.

Therefore option A is correct.

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Economic models: A. are of limited use because they cannot be tested empirically. B. are limited to variables that are directly
Mamont248 [21]

Answer:

C. emphasize basic economic relationships by purposefully simplifying the complexities of the real world.

Explanation:

6 0
3 years ago
The economizing problem is essentially one of deciding how to make the best use of a. limited resources to satisfy limited wants
elixir [45]

Answer: Option (C) is correct.

Explanation:

In economics, this is a fundamental problem that how to utilize the limited resources to satisfy unlimited wants. There are three things that are interrelated with each other:

(1) Limited resources

(2) Scarcity of goods and services

(3) Unlimited wants

We know that human wants are unlimited and resources are limited, then there is a problem of scarcity arises. Many economists call this as "economizing problem". So, economizing problem is all about making choices from scarce resources.

6 0
4 years ago
Applewood, Inc. has a contract with Marco's Electronics to sell Marco's 500 car audio systems at a price of $100 each. Applewood
Gekata [30.6K]

Answer:

Applewood can stop the shipment and have the goods returned (the right of stoppage of goods).

Explanation:

When the buyer becomes insolvent while the goods are in transit, and the goods have not been paid yet, then the seller has the right to stop the delivery and resume possession of the goods.

Applewood could also try to sue Marco for specific performance but considering their current position it might be useless and actually result in more money invested and larger losses.

5 0
3 years ago
The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organiz
LenKa [72]

Answer: D. Common stock

Explanation:

Common stock refers to the security which represents ownership in a corporation.

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing a corporation includes a credit to the common stock.

3 0
3 years ago
On April 1, Sangvikar Company had the following balances in its inventory accounts:
noname [10]

Answer:

a.

DR Raw Material Inventory                             $30,000

CR Accounts Payable                                                     $30,000

b.

DR Work in Process Inventory                          $33,900

CR Raw Material Inventory                                                $33,900

Working

= Job 114 + Job 115 + Job 116

= 16,500 + 12,400 + 5,000 = $33,900

c.

DR Work in Process                                            $‭7,430‬

CR Wages Payable                                                             $‭7,430‬

Working

= (150 * 15) + (220 * 17) + (80 * 18)

= $‭7,430‬

d.

DR Work in Process                                              $‭4,458‬

CR Manufacturing Overhead                                              $‭4,458‬

Working

Overhead as % of Direct labor cost using Job 115 = Applied Overhead / Direct labor = 936/1,560 = 60%

Manufacturing Overhead = Overhead rate * Direct labor

= 60% * 7,430 = $‭4,458‬

e.

DR Manufacturing Overhead                                     $4,765

CR Accounts Payable                                                              $4,765

f.

DR Finished Goods                                                    $‭23,520‬

CR Work in Process                                                                   $‭23,520‬

Job 115 costs = Beginning + Material + Labor + Overhead

= (2,640 + 1,560 + 936) + 12,400 + (220 * 17) + (220 * 17 * 60%)

= $‭23,520‬

g.

DR Cost of Goods sold                                               $‭23,520‬

CR Finished Goods                                                                     $‭23,520‬

DR Accounts Receivable                                            $‭32,928‬

CR Cost of Goods sold                                                              $‭32,928‬

Working

= ‭23,520‬ * 140%

= $‭32,928‬

4 0
3 years ago
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