Answer:
A. Dr Raw meat Inventory 120,000
Cr Cash 120,000
B. Dr Indirect Materials $186,000
Cr Raw Materials $186,000
C. Dr Direct Materials $15,000
Cr Raw Materials $15,000
Explanation:
Preparation for the journal entries for the above transactions for the month of May.
Dr Raw meat Inventory 120,000
Cr Cash 120,000
(Being to record Raw materials purchases for cash)
B. Dr Indirect Materials $186,000
Cr Raw Materials $186,000
($201,000 - 15,000)
C. Dr Direct Materials $15,000
Cr Raw Materials $15,000
Answer:
a. The company must have had net income equal to zero in 2009.
Explanation:
If on its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million, and on its 2009 balance sheet, the balance of retained earnings was also equal to $510 million; then what is true is that the company must have had net income equal to zero in 2009.
Retained earnings is the profit amount or net income left over and taken back into the business after it has paid out dividends to its shareholders.
However it is unlikely that the company will pay out the entire amount it earns in a particular year but a percentage of earnings.
In the case of Sherman, it is unlikely that the company made a profit of $200 million and paid out every bit as dividends to shareholders but what is most likely is that there was no profit made for retention in 2009
Answer:
D. Material requisitions authorize the transfer of materials from the production floor to the raw materials warehouse
Explanation:
Material requisitions doesnt authorize anything, just provides information
Answer:
136.30 million
Explanation:
Total Labor force = Total of the Unemployed + Total of the Employed
Total Labor force = 129.6 million + 6.7 million
Total Labor force = 136.30 million
So, the total labor force in millions in the economy for 1997 equals 136.30 million
Answer:
Diversification for pooling risks
Explanation:
When a company wants to diversify it goes into various products in order to reach a larger market. This is the opposite of specialisation where the company focuses on one market or product.
When a company wants to diversify it will not be a good idea to do it because they want to pool risk.
Pooling of risk involves centralisation of process so that risk due to variability will be reduced.
Diversifying will increase risk due to variability.
