Answer:
a. Debit Accounts receivable for $600
Explanation:
As Greasy catering company provided services but had not got the bill from the customer, it increases an asset. According to the revenue recognition principle, revenue has recognized whenever it is provided not when the cash is received. In that case, the journal entry to record the transaction is -
Accounts receivable (Debit) $600
Revenue (Catering) (Credit) $600
Accounts receivable is debit because the company owes the amount from the customers.
Answer:
15,160
Explanation:
Net 20 terms: Full amount ready between 20 days, occasionally written as n/20.
Terms 2/10. n/30: with a 2% discount for settlement within 10 days, net 30 implying that the full amount will be ready between 30 days.
The terms 1/10, n/30: with a 1% discount for settlement within 10 days time, net 30 meaning the full amount is going to be ready between 30 days.
Terms 5/10, 2/30, n/60: 5% for settlement within 10 days, 2% for settlement in 11-30 days, full amount due within 60 days.
Net 30 Terms EOM: Payment will be ready in full 30 days after the end of the month (EOM) in which the invoice was given for.
Answer:
Results are below.
Explanation:
Giving the following information:
January $2,700 300
February $3,000 350
March $3,600 500
April $4,500 690
May $3,200 500
June $5,500 700
<u>To calculate the variable and fixed costs, we need to use the following formulas:</u>
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (5,500 - 2,700) / (700 - 300)
Variable cost per unit= $7
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 5,500 - (7*700)
Fixed costs= $600
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 2,700 - (7*300)
Fixed costs= $600
Answer:
I have attached the excel file which shows the entire calculation of all the parts of your question. Majority of the numbers are linked so that its easy for you to understand. Key points before you look into file.
1) Number of units have derived by dividing revenue over sales price per unit which is $5
2) Production units are calculated by dividing total sales unit by 12 (as mentioned in the question)
3)Keep in mind that 80% of revenue will be received next month of the sales therefore also include in January sales receipt the 80% revenue of previous month
Explanation:
Answer:
Break-even points in units is 33,705.00
Explanation:
Break-even point in units=fixed costs/weighted average selling price-weighted average variable cost
Kayaks 12,600
Motors 23,400
total 36,000
kayaks sales mix=12,600/36,000=0.35
Motors sales mix =23,400/36,000=0.65
weighted average selling price=$120*0.35+$80*0.65
=$42+$52
=$94
weighted average variable cost=$80*0.35+$60*0.65
=$28+$39
=$67
fixed costs is $910,035
break-even points in units=$910,035/($94-$67)
= 33,705.00
The mix of both Kayaks and Motors that would gives no profit no loss is 33,705.00
