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slega [8]
3 years ago
10

Widden Company, which sells electric razors, had $320,000 of cost of goods sold during the month of June. The company projects a

9 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $33,000, and the desired ending inventory balance for July is $34,000. Widden pays cash to settle 75 percent of its purchases on account during the month of purchase and pays the remaining 25 percent in the month following the purchase. The accounts payable balance as of June 30 was $37,000.
A. Determine the amount of purchases budgeted for July?
B. Determine the amount of cash payments budgeted for inventory purchases in July?
Business
1 answer:
butalik [34]3 years ago
8 0

Answer:

Part A. The amount of purchases budgeted for July is calculated below:

Amount of purchases = Cost of goods sold + Closing inventory - Opening inventory  

Amount of purchases = ($320,000 x 1.09) + $34,000 - $33,000

Amount of purchases = $348,800 + $34,000 — $33,000

Amount of purchases = $349,800

Therefore, the amount of purchases budgeted for July is $349,800.

Part B. The amount of cash payments budgeted for inventory purchases in July is calculated below:

Amount of cash paid in July = Opening accounts receivable + 75% of purchases in July

Amount of cash paid in July = $37,000 + ($349,800 × 0.75)

Amount of cash paid in July = $37,000 + $262,350

Amount of cash paid in July = $299,350

Therefore, the amount of cash paid in July is $299,350.

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Phantasy [73]

Answer: The court shouldn't grant either of them motion, due to the fact that the jury must determine whether the damage was due to the technician's installation of the improper cooling panel.

Explanation:

Based on the information given and assuming that both parties have moved for a directed verdict, then the court should not grant either of the motions.

The court shouldn't grant either of them motion, due to the fact that the jury must determine whether the damage was due to the technician's installation of the improper cooling panel.

6 0
3 years ago
Miller, Inc. has 5,000 shares of 6%, $400 par value, cumulative preferred stock and 100,000 shares of $4 par value common stock
grin007 [14]

Answer:

$40,000

Explanation:

Calculation to determine the amount of dividends received by the common stockholders in 2017

First step is to calculate the preferred stock

Preferred stock=(5,000 shares*$400)*6%

Preferred stock=$2,000,000*6%

Preferred stock=$120,000

Now let calculate the amount of dividends received by the common stockholders in 2017

Dividend Received=($200,000-$120,000)/2

Dividend Received=$80,000/2

Dividend Received=$40,000

Therefore the amount of dividends received by the common stockholders in 2017 will be$40,000

4 0
2 years ago
Marginal revenue can become negative for A. both competitive and monopoly firms. B. monopoly firms but not for competitive firms
Lena [83]

Answer:

B. monopoly firms but not for competitive firms.

Explanation:

Marginal revenue can become negative for monopoly firms but not for competitive firms.

A monopolist’s marginal revenue is always less than or equal to the price  of the good.

Marginal revenue is the amount of revenue the firm receives for  each additional unit of output. It is the difference between total revenue – price  times quantity – at the new level of output and total revenue at the previous  output (one unit less).

Since the monopolist’s marginal cost curve lies below its demand curve.  When a monopoly increases amount sold, it has two effects on total revenue:

– the output effect: More output is sold, so Q is higher.

– the price effect: To sell more, the price must decrease, so P is lower.

For a competitive firm there is no price effect. The competitive firm can sell  all it wants at the given price.

So the marginal revenue on a monopolist's additional unit sold is lower than the price, <u>because it gets less revenue for selling additional units.</u>

<u>Marginal revenue can become negative – that is, the total revenue decreases from one output level to the next. </u>

5 0
3 years ago
The ________ phase of the strategic marketing process usually results in a(n) ________ that sets the direction for the marketing
zhenek [66]

Answer:

planning; marketing plan

Explanation:

The planning phase is the second phase of any activity. It is basically made after analysis of all the problems and opportunities.

Planning phase basically aims at organizing the techniques for achieving the aims. This aims for planning phase to achieve the sales and set targets for gaining maximum performance in marketing. This sets all the strategies and policies for marketing.

7 0
3 years ago
Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depr
andriy [413]

Answer:

$11,000

Explanation:

Fabricating Department budgeted direct labor = $9,280

Depreciation remains constant at any level of production.

Budgeted labor rate = Budgeted direct labor ÷ Hours of production

                                  = $9,280 ÷ 640

                                  = $14.5 per hour

Direct labor cost = completed hours of production × Budgeted labor rate

                            = 600 × $14.5

                            = $8,700

Budget for the Fabricating Department at 600 hours of production:

Budgeted cost = Direct labor cost + Equipment depreciation

                         = $8,700 + $2,300

                         = $11,000

4 0
3 years ago
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