Answer:
$0 in March; 2.07 mil in May
Explanation:
At the end of March, Baldwin corporation would have accounted the entire sales as they follow accrual system of accounting. Since the company offers 30 day credit period, its assumed all sales are on credit. The consolidated entry would be
Debtors accounts Debit $ 2,070,000
Sales account credit $ 2,070,000
As per the information provided, the company has received $2.07 million by the end of may. Since there is a credit period of 30 days, its assumed that no payment has been received in March and hence nothing should be shown in March. Its a post balance sheet event that does not have any impact as on March.
By the end of may, the company received the entire payment and hence in the income statement of May, the entire $2.07 million should be shown. Collection entry should be passed which will remove the debtors , however will not impact the profit / loss.
Answer:
Option (a) is correct.
Explanation:
According to the law of diminishing marginal productivity, if there is an increase in the input in the production of a certain commodity then as a result there is an increase in the output of that commodity, initially but further increase in the input will have no impact on the output of the commodity or will have a negative impact.
In our case, when farmer hires 3rd worker, the output increases by 1,400(4,400-3,000) bushels. According to the law of diminishing marginal productivity, if he hires 4 workers then there is an increase in the output but less than the 1,400 bushels.
This condition will be satisfied in the option (a), where output increases by 1,200 bushels.
Answer:
Option A is correct
OAR = $10.5 per hour
Explanation:
Overhead absorption rate(OAR) = Estimated overhead/Estimated labour hours
Estimated labour hours = (4×1,000) + (3×2,000)=10,000 hours
OAR = $105,000/10,000 hours = $10.5 per hour
OAR = $10.5 per hour
The answer is it depends if the seller is the owner or a representative of the seller.
The answer is True if the seller is the one selling the product. The warranty of title is added automatically once the purchase is made. But in the situation wherein the seller had asked someone to represent him, then the title would not be automatically be added.
Answer:
Identification of Features Applying More to Job Order Operations, Process Operations, or Both:
Features
1. Cost object is a process. Process Operations
2. Measures unit costs only at period-end. Process Operations
3. Uses indirect costs. Both
4. Transfers costs between Work in
Process Inventory accounts. Process Operations
5. Uses only one Work in Process account. Job Operations
6. Uses materials, labor, and overhead costs. Both
Explanation:
The main difference between the two operations is the manner costs are accumulated. Job operations accumulate costs for different jobs that are not similar. Process operations accumulate costs to show the process a product passes through. The product of a process operation is not unique like the product of a job operation.
