Answer:
Gross profit= $135,400
Explanation:
Giving the following information:
12,100 units:
Material $6
Labor $4
Overhead $3
Total $13
27,00 units:
Material $10
Labor $4
Overhead $3
Total $17
Convex sold 29,000 units during the last six months of the year at $20 each.
First, we need to calculate the cost of goods sold.<u> Under the FIFO (first-in, first-out) method, the COGS is calculated using the cost of the first units sold.</u>
COGS= 12,100*13 + 16,900*17= $444,600
<u>Now, the gross profit:</u>
Gross profit= 29,000*20 - 444,600
Gross profit= $135,400
Answer:
$0.68
Explanation:
Multiply each possible prize by its likelihood and add the results in order to obtain the expected value (Note that there is a 100% of losing 0.57 cents since that is the cost of entry):
The expected value of the amount won for one entry if the cost of entering is 57 cents is $0.68
Answer: $1,750
Explanation:
Incurring a health insurance cost of $5,000 or increasing salaries by $5,000 will have the same effect on the taxes because they will both be removed from the income before the taxes are calculated.
The reduction in tax in either case is:
= Expense * Tax rate
= 5,000 * 35%
= $1,750
An accounts receivable aging is a report that lists unpaid customer invoices and unused credit memos by date ranges. The aging report is the primary tool used by collections personnel to determine which invoices are overdue for payment.
Answer:
The amount of uncollectible accounts is calculated as follows:
Amount of uncollectible accounts to be adjusted = 6% * Account receivables
= 6% * $138,500
=$8,310
Therefore, amount of uncollectible accounts is $8,310.
Bad debt Expenses = Opening balance of allowance for doubtful account (Credit balance) - Uncollectible account
Bad debt Expenses = $8,310 - $1,005
Bad debt Expenses = $7,305
The journal entry to record allowance for bad debts is as follows:
Account Titles and Explanation Debit Credit
Bad debt Expenses $7,305
Allowance for doubtful account $7,305
(To record adjusting entry for bad debt)