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Bess [88]
3 years ago
5

On May 10, 2020, Crane Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the f

ull contract price of $1,840 on July 15, 2020. The cost of the goods is $1,170. Crane delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Crane related to this contract. Either party may terminate the contract without compensation until one of the parties performs.
Business
1 answer:
belka [17]3 years ago
3 0

Answer and Explanation:

The journal entries are shown below:

1. Accounts receivable a/c Dr $1,840

            To Sales revenue a/c Cr  $1,840

(Being the sales is recorded)

2. Cost of goods sold a/c Dr $1,170

                  To Inventory a/c Cr $1,170

(Being the cost of goods sold is recorded)

3. Cash a/c Dr $1,840

          To Accounts receivable a/c Cr $1,840

(Being the payment received is recorded)

Only these three entries are recorded

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Bradford Company derived the following cost relationship from a regression analysis of its monthly manufacturing overhead cost:
Firdavs [7]

Answer:

Bradford's estimated variable manufacturing overhead cost is $127,200

Explanation:

The cost function=$83,000+$12M

where M stands for machine hours required to produce the expected output in the month under review.

Each one-six unit case of Bradford's single product requires two machine hours,hence 5,300 cases would require 10,600 hours(5,300*2hrs).

Total estimated variable manufacturing overhead=cost per machine hour*expected number of machine hours

cost per machine hour is $12 as seen in the cost function

estimated variable manufacturing overhead=$12*10,600=$127,200

3 0
3 years ago
A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers
PSYCHO15rus [73]

Answer:

<em>B. ​vendor-managed inventory. </em>

Explanation:

A simplified approach to inventory management and order fulfillment is the Vendor Managed Inventory (VMI).

VMI includes coordination between manufacturers and their customers (e.g. distributors, retailers, OEMs or end users of products) which transforms the conventional purchasing process.

VMI's <em>objective is to harmonize business goals for both suppliers and their customers and streamline supply chain operations.</em>

  • Higher Sales.
  • Best and Improved Service.
  • Improved Inventory Turns
8 0
2 years ago
Which sentence in the passage refers to the "analysis" of a given problem?
GrogVix [38]

Answer:

Last paragraph

Explanation:

Finally, Jeremey has also divided the problem into smaller parts, such as production costs, overheads, downtime expense, repair expenditure, and so on.

7 0
2 years ago
Read 2 more answers
Antipoverty programs that are set up so that the amount of government benefits will decline substantially as poor people earn mo
Alex17521 [72]

Antipoverty programs that are set up so that the number of government benefits will decline substantially as poor people earn more income typically create a <u>poverty trap.</u>

What is the Poverty trap?

A "poverty trap" is a collection of self-reinforcing factors that causes nations to start out poor and stay that way. Because poverty breeds poverty, existing poverty directly contributes to future poverty.

In the United States, poverty traps are areas, counties, or localities with chronic institutional and economic issues that result in persistently high rates of poverty. Residents are frequently stuck in unfavorable situations where there is no chance for advancement or economic progress.

The majority of nations are enjoying some growth, and poor people don't seem to have significantly different income dynamics from those who earn more, which shows that poverty traps are not common at either the national or individual level.

Learn more about poverty traps here:

brainly.com/question/14995157

#SPJ4

6 0
1 year ago
Blackstone Technology is planning to invest in some project using external equity. The company has a beta of 1.1. The return on
Salsk061 [2.6K]

Answer:

Cost of equity = 19.1 %

Explanation:

Cost of equity = required rate of return + flotation cost

The Capital assets pricing model would be used to determined  the required rate of return

<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  </em>

Using the CAPM , the required rate of return is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) - required return

β- Beta

Rm- Return on market

Rf- Risk-free rate

DATA

E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%

E(r) = 3% + 1.1× (14% - 3%) = 15.1 %

Cost of equity = required rate of return + flotation cost

                        = 15.1 % + 4% = 19.1 %

Cost of equity = 19.1 %

7 0
3 years ago
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