Answer:
February 2
Debit Inventory $60,000
Credit Cash/Accounts payable $60,000
February 5
When a return of the item purchased is done,
Debit Cash/Account payable $4,000
Credit Inventory $4,000
Explanation:
In the perpetual inventory system, any movement (sale or return or purchase) must be adjusted in the books once the item moves.
When an item is purchased, such purchase may be done by cash or on account, the entries required are
Debit Inventory
Credit Cash/Accounts payable
When a return of the item purchased is done,
Debit Cash/Account payable
Credit Inventory
Amount returned = $40 * 100
= $4,000
The answer is d, you should always consider everything before signing your job contract
Answer:
$275,000
Explanation:
Goodwill in business combination arises when the price paid in acquiring a business exceeds the fair value of the acquired business net assets . The fair value is used rather than the carrying amount to ensure fairness and an unbiased result
<u>Workings</u>
Purchase consideration = 250,000*15 =3,750,000
Percentage acquired = 100%
Fair value of net asset = 3,000,000+400,000+75,000= 3,475,000
Goodwill = 3,750,000=3,475,000 =275,000
Answer: Vision statement
Explanation:
Vision statement is referred to as or known as an organization's road map, which tends to indicate what the organization believes to become and achieve by putting forth a well defined direction and route for the organization's growth. These statements usually undergo the minimal revisions throughout the lifetime of an organization, unlike the operational goals that might be revised on yearly basis.
Answer:
Standard fixed overhead rate
= Budgeted fixed overhead cost
Budgeted direct labour hours
= $45,000
15,000 hours
= $3 per direct labour hour
Fixed overhead volume variance
= (Standard hours - Budgeted hours) x Standard fixed overhead rate
= (12,000 hours - 15,000 hours) x $3
= $9,000(U)
The correct answer is B
Explanation:
In this case, we need to calculate standard fixed overhead rate, which is budgeted fixed overhead cost divided by budgeted direct labour hours. Then, we will calculate fixed overhead volume variance, which is the difference between standard hours and budgeted hours multiplied by standard fixed overhead rate.
