Answer:
The amount of cash received on January 24 is $3332
Explanation:
The amount of cash received will be for the net amount of receivable after adjusting for sales returns and the sales discount as the payment is received within the discount period of 10 days as stated by the term 2/10 which means a 2% discount if payment is received within 10 days of sale.
The accounts receivable at January 15 after sale were $4500. Out of this amount, $1100 of returns are made. Thus, the remaining balance of accounts receivables after return is $4500 - $1100 = $3400
The discount received will be = 3400 * 2% = $68
Thus, the cash received on January 24 will be 3400 - 68 = $3332
Answer:
$91
Explanation:
Given the following information,
Direct materials per unit = $54
Direct labor per unit = $20
Variable overhead per unit = $6
Fixed overhead for the year = $462,000
For Absorption costing method, it includes all costs associated with production, including fixed and variable cost. The unit product cost is calculated using direct material, direct labor and total unitary manufacturing overhead.
Unitary cost = (Fixed overhead for the year / Units produced) + Direct materials per unit + Direct labor per unit + Variable overhead per unit
Unitary cost = ($462,000 / 42,000) + $54 + $20 + $6
Unitary cost = $11 + $54 + $20 + $6
Unitary cost = $91
Therefore, the product cost per unit is $91
Answer:
$100,000 and $241,000
Explanation:
The computation of the gross profit for the Black and Navy Divisions shown below:
As we know that
Gross profit = Sales - cost of goods sold
For Black, it would be
= $200,000 - $100,000
= $100,000
And, for Navy, it is
= $400,000 - $159,000
= $241,000
We simply applied the above formula to compute the gross profit
Answer:
Dr Cash for $461,795,
Cr Premium on Bonds Payable for $11,795
Cr Bonds Payable for $450,000
Explanation:
Journal entries
Dr Cash for $461,795,
Cr Premium on Bonds Payable for $11,795
Cr Bonds Payable for $450,000
(Issue price of $461,795 - par value of $450,000) =$11,795
Answer: Debit: Cost of goods sold $1400
Credit: Inventory $1400
Explanation: The lower of cost or LCM rule indicates that a company needs to value it's inventory at the end of the year at whatever cost is lower, between the actual cost of the inventory or its market price currently. This is in accordance with US GAAP.
In Mariah Company the historical cost, which is the actual cost of the inventory and thus what it is valued at in the books, is $74000. Replacement cost, which is how much it would cost to replace an asset based on market rates, is only $72600. The replacement cost is thus lower. Since the inventory is still valued at historical cost in the books, it will have to been written down to the replacement cost value. To do this the difference between both costs will need to be deduced. Difference is thus: $74000 - $72600 =$1400.
When write down occurs, this is expensed to cost of goods sold. This is because there is a decrease in closing inventories. If there is a decrease in this figure then it will lead to a subsequent increase in cost of goods sold, leading to it being debited to show this increase (remember the formula to calculate cost of goods sold). Inventory is credited as the value of this inventory has decreased, and inventories decrease on the credit side.
