Answer:
The Journal entries are as follows:
(i) On May 4,
Accounts payable A/c Dr. $700
To cash $700
(To record the supplies)
(ii) On May 7,
Accounts receivable A/c Dr. $6,800
To service revenue $6,800
(To record the service revenue)
(iii) On May 8,
Supplies A/c Dr. $850
To accounts payable $850
(To record the purchase of supplies on account)
(iv) On May 9,
Equipment A/c Dr. $1,000
To cash $1,000
(To record the equipment purchased)
(v) On May 17,
Salary expense A/c Dr. $530
To cash $530
(To record the salary expense)
(vi) On May 22,
Repair expense A/c Dr. $900
To accounts payable $900
(To record the repair expense)
(vii) On May 29,
Prepaid Insurance A/c Dr. $1,200
To cash $1,200
(To record the prepaid insurance)
Answer:
Equity multiplier = 2.16
Explanation:
Given:
Total assets = $550,000
Total debt = $295,000
Find:
Equity multiplier
Computation:
Equity multiplier = Total assets / [Total assets - Total debt]
Equity multiplier = $550,000 / ($550,000 – 295,000)
Equity multiplier = 2.16
Answer:
The correct answer is e. competitor-oriented pricing
.
Explanation:
A competition-oriented pricing strategy means that the pricing decision corresponds to the consumer's own issues, which influences their purchase decision. Diane's decision to lower her cupcakes and equalize the price of CC's Bakery only supposes the materialization of a strategy that seeks to discard the price as a determining factor in the sales process and assign it to other variables such as attention, quality, etc.
Answer:
a. Determine the total number of budgeted direct labor hours for the year in each department.
- Fabrication 12,000 direct hours
- Assembly 18,000 direct hours
b. Determine the departmental factory overhead rates for both departments.
- Fabrication $270,000 / 12,000 direct hours = $22.50 per direct labor hour
- Assembly $126,000 / 18,000 direct hours = $7 per direct labor hour
c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
- Speedboats = $22.50 + $7 = $29.50
- Bass boats = $22.50 + $14 = $36.50
Explanation:
total overhead expense $396,000
- Fabrication $270,000
- Assembly $126,000
speedboats (6,000 units)
- Fabrication 1 hour x 6,000 = 6,000 hours
- Assembly 1 hour x 6,000 = 6,000 hours
bass boats (6,000 units)
- Fabrication 1 hour x 6,000 = 6,000 hours
- Assembly 2 hours x 6,000 = 12,000 hours
