Answer:
b) adjusting entry will require a credit to Cost of Goods Sold.
c) Factory Overhead account has a credit balance of $300 before adjusting.
Explanation:
Given that
Actual Overhead = $1200 i.e. debited to the factory overhead account
And,
Applied overhead = $1500 i.e. Credited to the factory overhead account
So, the Factory overhead account has a credit balance of $300 prior adjusting
Also the applied overhead is higher than the actual one so the adjusting entry would needed to credit to the cost of goods sold
As the gas prices increase, the demand for electric and fuel efficient cars has greatly increased. People want to avoid spending more money than needed. With new advancements being made technologically, there is not much of a demand for cars that require excessive gasoline.
These new advancements have created a new era of automobiles which in turn creates job openings and economic growth in the auto industry.
Personally, I would rather purchase an electric car, or a car that is more fuel efficient to save more money in the long run.
Answer:
14.7%
Explanation:
The computation of return on investment is shown below:
Return on Investment = Net Income ÷ Average total assets × 100
where,
Net Income is
= Sales - Cost of goods sold - Operating expense
= $4,525,000 - $2,550,000 - $1,372,000
= $603,000
And,
Average total assets = $4,100,000
So,
Return on Investment is
= $603,000 ÷ $4,100,000 × 100
= 14.7%
Answer:
12
Explanation:
Calculation to determine Determine the company's price-earnings ratio
First step is to calculate the Earnings per Share
on Common Stock
Earnings per Share
on Common Stock = ($410,000 – $60,000) ÷ $50,000
Earnings per Share on Common Stock = $7
Now let calculate thecompany's price-earnings ratio
Price-Earnings Ratio = $84÷$7
Price-Earnings Ratio = 12
Therefore the company's price-earnings ratio is 12
