PLEASE HELP! What is income??

Prime Corp. has an ending balance in the accounts receivable account of $100,000. Prime recorded bed debt expense of $3000. Prim

Lelu [443]

Answer:

True

Explanation:

Prime's net realizable value of accounts receivable = accounts receivable balance - allowance for uncollectible accounts = $100,000 - $7,000 = $93,000

Bad debt expenses have already been debited, so they are no longer part of the allowance for uncollectible accounts.

5 0

3 years ago

In a pure market economy: Question 8 options: A) production is determined by the interaction of supply and demand. B) the prices

LenaWriter [7]

Answer:

A) production is determined by the interaction of supply and demand.

Explanation:

A pure market economy is an economy where production decisions are made by the forces of demand and supply. there is no intervention of the government in production decisions

Characteristics of a pure market economy

Private ownership of means of production
freedom of choice. Producers are free to produce what they desire
competition among producers
no government intervention.

4 0

3 years ago

Compare and contrast the product vs. process layouts. What are the advantages & disadvantages? List examples of products tha

Contact [7]

Answer:

Explained below.

Explanation:

With a product layout, equipment breakdown has serious implications because the separate pieces of equipment are closely tied together. If one piece of equipment fails, the line will quickly come to a halt. Consequently, preventive maintenance to reduce the failure rate is advisable. In contrast, a process layout often contains duplicative equipment so that if one particular piece of equipment fails, the work can usually be shifted to another piece of equipment. Consequently, there is less need for preventive maintenance and less need for repair of equipment when it does break down. Moreover, process layouts utilize more skilled workers who tend to take better care of the equipment than the lower-skilled workers do in a product layout system.

* The main advantages regarding the product layouts include:

a. A potentially huge rate of output.

b. Lowering unit costs.

c. Low training costs and a broad span of supervision due to specialization.

d. The low unit price concerning material administration.

e. High utilization of labor and tools.

f. Routing as well scheduling are being built into the design.

g. Accounting, purchasing, including inventory control are routine.

* The main disadvantages regarding the product layouts include:

a. Specialization can lead to dull, repetitive jobs with little opportunity for personal satisfaction or creativity.

b. Workers may have little interest in maintaining equipment or in the quality of output.

c. The system is not particularly adaptable to changes in process design or changes in the volume of output.

d. The system is highly susceptible to shutdowns caused by equipment failure or excessive absenteeism.

e. Preventive maintenance costs and the capacity for quick repairs are necessary to ensure high utilization.

f. Incentive plans tied to individual output are impractical.

* The main advantages regarding the process layouts are:

a. They can manage a variety of processing requirements.

b. They are less vulnerable to equipment failures than product layouts are.

c. The general-purpose tools used often are less costly than the specialized equipment used in product layouts. It is also usually easier and less costly to manage and repair.

d. Specific stimulation systems are possible.

* The main disadvantages regarding the process layouts are:

a. Work-in-process inventory costs can be high (in manufacturing).

b. Routing and scheduling must be done for each new job.

c. Equipment utilization valuations are habitually low.

d. Material handling is slower, less efficient, and more costly per unit than is the case in a product layout.

* Example of product layout includes self-service cafes, car assembly as well as car valeting.

* Example of process layout are milling, drilling, grinding, hydraulic presses, as well as lathes)

7 0

3 years ago

A government entered into a general government capital lease in the prior year. During the current year, a lease payment of $50,

m_a_m_a [10]

Answer:

Net increase in Capital Assets with amount of USD 38,000/-

5 0

3 years ago

Houston Houston Office Equipment manufactures and sells metal shelving. It began operations on January 1,2014.

Vanyuwa [196]

Solution:

1) If 2 pounds of direct materials are used to make one unit of finished product, then 115,000 units × 2 lbs, or 230,000 lbs were used at $0.65 per lb of direct materials i.e. ($149,500 ÷ 230,000 lbs.).

The Formula for calculating Ending Direct Material Cost = [Ending Direct Material Inventory * Cost per lb]

Therefore, Ending Direct Materials cost is 1,900 lbs. * $0.65 = $1,235.

2) Manufacturing Costs for 115,000 units

Variable Fixed Total

Direct materials costs – $149,500 + Direct manufacturing labor costs – 31,500 + Plant energy costs – 3,000 + Indirect manufacturing labor costs

(Variable + Fixed) i.e. 15,000+12,000 - 27,000 + Other indirect manufacturing costs

(Variable + Fixed) i.e. 10,000+32,000 - 42,000

So, Cost of goods manufactured - $253,000

Average unit manufacturing cost = $253,000 ÷ 115,000 units

= $2.20 per unit

Finished Goods Inventory at Dec. 31, 2014 = $15,400

Therefore Finished goods inventory total units = $15400 / $2.20

= 7,000 units

3) Units sold in 2014 = Beginning inventory + Production – Ending inventory

= 0 + 115,000 –7,000

= 108,000 units

Therefore, Selling price in 2014 = Total Revenues / Units Sold

= $583,200 ÷ 108,000

= $5.40 per unit

4) Operating Income for 2014

Revenues(108,000 units sold × $5.40) = $583,200

Cost of units sold:

Beginning finished goods, Jan. 1, 2014 = $0

Cost of goods manufactured = $253,000

Cost of goods available for sale = $253,000

Ending finished goods, Dec. 31, 2014 = $15,400

So, Cost of Units sold ($253000 - $15400) = $237,600

Therefore, Gross margin = Total Revenue - Cost of Units Sold

= $583,200 - $237,600

= $345,600

Operating costs: Marketing, distribution, and customer-service costs

Variable + Fixed i.e. ($126,000 + $48,000) = $174,000

Administrative costs = $57000

Total Operating Costs = $231,000

Therefore Operating income for 2014 = $345600 - $231,000

= $114600

3 0

2 years ago