Answer:
The equilibrium may increase, decrease or remain the same.
Explanation:
If more students attend college they will need textbooks, so the demand for textbooks will increase. This will cause the demand curve to shift to the right.
At the same time, as paper becomes cheaper, the cost of producing textbooks will get reduced. This will increase the supply of new textbooks. This increase in supply will cause the supply curve to shift to the right.
If textbook authors accept lower royalties the cost of production for textbooks will decrease, so the supply will increase.
If fewer old textbooks are sold, the demand for new textbooks will increase.
This increase in both demand and supply of textbooks will increase the equilibrium quantity of textbooks. But the change in equilibrium price depends on the proportionate change in demand and supply.
If both demand and supply increase by the same proportion, the equilibrium price will remain the same.
If demand increases more than the supply, the equilibrium price will increase.
If supply increases more than demand, the equilibrium price will fall.
Answer: Option (A) is correct.
Explanation:
Given that,
Data for the month of October:
Cost of beginning inventory = $46,000
Cost of ending inventory = $32,000
Cost of goods sold = $122,000
Inventory purchases in October:
= Cost of goods sold + Cost of ending inventory - Cost of beginning inventory
= $122,000 + $32,000 - $46,000
= $108,000
Answer:
B. debit to Bad Debt Expense for $3,200.
Explanation:
In the given question, the total of uncollectible accounts is $4,000 and the allowance for doubtful accounts has an $800 credit balance. The remaining amount which is left i.e $3,200 ($4,000 - $800) is debited to bad debt expense
The journal entry is shown below:
Bad debt expense A/c Dr $3,200
To Allowance for Doubtful Accounts $3,200
(Being bad debt expense recorded)
Answer:
A. True
Explanation:
The formula to compute the cost of goods manufactured is shown below:
Cost of goods manufactured = Opening work in process + Manufacturing cost - ending work in process
here the manufacturing cost refers to the direct material cost, direct labor cost and the manufacturing overhead cost i.e. indirect cost that is required to manufacturing a product
hence, the given statement is true