What is diversification?

The Vintage Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June

Mazyrski [523]

Answer:

D.) debit Supplies Expense. $5,500; credit Supplies, $5,500

Explanation:

First, let's talk about the amount.

On June 2 they purchased supplies worth $6,500 and recorded it as an ASSET. Debited on "Supplies" Account

Then on June 30, only $1,000 is on hand. That means that $5,500 worth of supplies must have been used (Solved as 6,500 less 1,000)

Now, the entry should reduce the "Supplies" Account since there were only $1,000 left. So it's correct to credit Supplies for $5,500 to reduce $6,500 into $1,000 worth.

The corresponding debit would consequently be "Supplies Expense" since $5,500 worth of supplies was used for the month.

3 0

3 years ago

Padco averages $15 million worth of inventory in all of its worldwide locations. they operate 51 weeks a year and each week aver

Zepler [3.9K]

Padco averages $15 million worth of inventory in all of its worldwide locations. they operate 51 weeks a year and each week averages $3 million in sales (at cost). their inventory turnover is 10.2 turns.

Inventory turnover is a financial ratio that demonstrates how frequently a company sells and replaces inventory over a specific time frame. The days it takes to sell the company's inventory on hand can then be determined by multiplying the number of days in the period by the inventory turnover formula.

Businesses can improve their decisions about pricing, production, marketing, and the acquisition of new inventory by calculating inventory turnover.

Inventory turnover quantifies how frequently a business can replenish the stocks it has sold during a specific time period. A slower ratio suggests either strong sales or insufficient inventory, while a quicker ratio suggests either weak sales or high sales.

The industries with the largest inventory turnover rates tend to be those with low margins and high volumes, like supermarkets and merchants.

Learn more about inventory turnover here:

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7 0

1 year ago

. Zoe Corporation has the following information for the month of March: Purchases $ 92,000 Materials inventory, March 1 6,000 Ma

rodikova [14]

Answer:

1. Cost of goods manufactured = $150,500

2. Net income = $36,500

3. Total Inventory = $61,500

Explanation:

Requirement 1

Zoe Corporation

Schedule of cost of goods manufactured

For the month ended March 31

Direct Materials:

Beginning Materials inventory $6,000

Add: Raw materials purchases 92,000

Raw materials available for use $98,000

Less: Ending Raw Materials 8,000

Direct materials used $90,000

Direct Labor 25,000

Prime Cost $115,000

Factory overhead 37,000

Total manufacturing cost $152,000

Add: Work in process, March 1 22,000

Less: Work in process, March 31 (23,500)

Cost of goods manufactured $150,500

Requirement 2

Zoe Corporation

Income Statement for manufacturing company

For the month ended March 31

Sales revenue $257,000

Less: Cost of goods sold

Beginning finished goods inventory $ 21,000

Add: Cost of goods manufactured (Req.1) 150,500

Finished goods available for sale 171,500

Less: Ending finished goods inventory (30,000)

Cost of goods sold 141,500

Gross Profit $115,500

Less: Sales and administrative expenses 79,000

Net operating Income $36,500

Requirement 3

Zoe Corporation

Balance Sheet

As at March 31

Inventory:

Materials $8,000

Work-in-process 23,500

Finished goods 30,000

Total Inventory $61,500

Inventory consists of all the ending materials, ending work-in-process, and ending finished goods. All the ending items need to be shown in the balance sheet because those inventories will remain at hand at the end of the period.

5 0

3 years ago

During the year, Eleanor earns $120,000 in wages as an employee of an accounting firm. She also earns $30,000 in gross income fr

madam [21]

Answer:

Self employment tax will be $24000

So option (e) will be correct option

Explanation:

We have given that earning from outside consulting service = $30000

Deductible amount paid in connection with consulting service = $6000

We have to find the self employment tax

Self employment tax is the difference of earning from outside source and deductible amount

So self employment tax = $30000 - $6000 = $24000

So option (e) will be correct option

5 0

3 years ago

Shontelle received a gift of income-producing property with an adjusted basis of $49,000 to the donor and fair market value of $

Ugo [173]

Answer:

The recognized gain or loss is -$4000.

Explanation:

Gift property value = $49000

fair market value = $35000

realized loss = sale price - fair market value

= $31000 - $35000

= -$4000

Therefore, The recognized gain or loss is -$4000.

4 0

3 years ago