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4 years ago

10

Review and complete the following statement regarding the Income Summary account. The Income Summary account is (debited/credite

d) for the sum of all revenue accounts and is (debited/credited) for the sum of all expense accounts and its balance will be transferred to the (Retained Earnings/Cash) account.

1 answer:

Artist 52 [7]4 years ago

8 0

Answer:

Credited , Debited, and Retained Earnings

Explanation:

The closing entries are presented below:

1. Revenue A/c Dr XXXXX

To Income summary A/c XXXXX

(Being the revenue account is closed)

2. Income summary A/c Dr XXXXX

To Expenses A/c XXXXX

(Being the expenses are closed)

3. Income summary A/c Dr XXXXX

To Retained earnings A/c XXXXX

(Being the difference i.e net profit is recorded)

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3 years ago

The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversion cost. The

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Answer:

Total cost added including beginning inventory

Raw material = $136,000

Overheads = $180,960

Total = $316,960

Explanation:

As provided the opening Work in process units = 5,000 units

Units started during the period = 37,500 questions

Closing work in process = 8,000 units

That means units produced = opening + additions - closing

= 5,000 + 37,500 - 8,000 = 34,500 units

Provided cost of beginning inventory = $16,000 for raw material and $12,000 for overheads

Also it is 100% complete for raw material and 50% complete for overheads

That means raw material per unit = $16,000/5,000 = $3.20

And the overheads 100% = $12,000 $\times$ 2 = $24,000

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Therefore, cost added during the period

Shall be

Raw material = 100% = 5,000 + 37,500 = 42,500 $\times$ $3.20 = $136,000

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3 years ago

Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or

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Answer:

a. For each country, graph the production possibilities frontier. Suppose that without trade the workers in each country spend half their time producing each good. Identify this point in your graphs.

attached graph

b. Who has the comparative advantage in the production of shirts? What about for computers?

China has the comparative advantage in the production of shirts, while the US has the comparative advantage in the production of computers.

c. If these countries were open to trade, which country would export shirts? Give a specific numerical example and show it on your graphs. Which country would benefit from trade?

China would export 50 million shirts in exchange for 5 million computers (or more if they can). Trade would benefit the US since it will only need to trade 5 million computers in exchange for 50 million shirts, and it will still have 15 million computers that it can consume or trade with come other country.

d. Explain at what price of computers (in terms of shirts) the two countries might trade.

the minimum and maximum prices would be 5 to 10 shirts per computer. If the price of shirts per computer is 10 or near 10, then the US wins more. If the price of shirts per computer is 5 or near 5, then China wins more.

Explanation:

opportunity cost of producing 1 shirt in the US = 20/100 = 0.2 computers

opportunity cost of producing 1 computer in the US = 100/20 = 5 shirts

opportunity cost of producing 1 shirt in China = 10/100 = 0.1 computers

opportunity cost of producing 1 computer in China = 100/10 = 10 shirts

without trade:

total production of shirts in the US = 50 million
total production of computer in the US = 10 million

total production of shirts in China = 50 million
total production of computer in China = 5 million

with trade:

total production of computers in the US = 20 million
total production of shirts in China = 100 million

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Answer and Explanation:

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Answer:

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3 years ago

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