Garage corp. uses a batch-and-queue or batch-and-wait production system wherein the sub-assembly or the partially completed product is move to the work-in-progress (WIP) location, the next department to take it from WIP location, perform an operation on them and then forward the resulting work into the next WIP location to wait once again. This procedure continuous until the final product is completed. Using this system, the Garage corp. produces and maintains large inventories since it drives products to lower average unit cost, so they need to produce more products and the more products produced, the greater the inventory asset. They will produce products of low quality since workers in traditional production do not have major responsibility for quality control during their work. They strive for efficiency which means producing the best yield at the lowest cost from the available resources but in the expense of effectiveness which is the degree where an objective or target is met. It is doing something right but not doing it right. And lastly they have an information loss between its organizational areas because they operate in a disconnected manner with little integration and communication.
Answer:
$ 925
Explanation:
Data provided:
Credit sales = $ 43,000
Collection of credits = $ 34,000
Amount written off = $ 675
Estimated uncollectible amount at the year end = $ 250
Now,
the bad debt expenses will be the total amount that has not be recovered back
i.e the amount written off + uncollectible amount
or
bad debt expenses = $ 675 + $ 250 = $ 925
Answer:
A.Product cost $365,600
B.Period cost $350,300
Explanation:
Direct materials $174,800
Direct labor $90,200
Manufacturing overhead:
Property taxes, factory $17,700
Indirect labor $41,200
Depreciation of production equipment $41,700
Total product cost $365,600
b.
Marketing salaries $50,600
Administrative travel $99,500
Sales commissions $57,300
Advertising $142,900
Total period cost $350,300
Answer:
a. 2.01 times
Explanation:
Asset Turnover Ratio = Net Sales / Average Total Assets
Asset Turnover Ratio = $510,000 / $253,500
Asset Turnover Ratio = 2.01 times
Asset Turnover Ratio > 1
Net Sales > Average Assets
Answer:
A. A market economy is determined by consumers and a command economy is determined by central authority.
Explanation:
A market economy is driven by customers in the form of demand and the sellers in market supply to satisfy the demand.
Command economy is driven by command, customers do not decide what to demand and when, only central authority supplies what they see fit.
