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3 years ago

A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true?

Business

1 answer:

sasho [114]3 years ago

3 0

Answer:

Option B is the correct answer.

Explanation:

The sale of finished goods worth $54000 for an amount of $150000 will require us to recognize a revenue of $150000 and a reduction in inventory of finished goods worth $54000.

Option a is incorrect as the gross profit is not recognized on balance sheet. The gross profit is an income statement item.

Option c is incorrect as the sale of finished goods will cause a reduction in the finished goods inventory for the amount of goods sold.

Option d is incorrect as the sale will be recognized in sales revenue on the profit and loss statement and not on the balance sheet as revenue is a profit and loss statement account.

Thus, option b is the correct answer as the sale of finished goods will be represented by a reduction in finished goods inventory by the cost of the goods sold which is $54000.

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Phillip Witt, president of Witt Input Devices, wishes to create a portfolio of local suppliers for his new line of keyboards.

kirill115 [55]

Answer:

Based on the EMV value, the best choice is to use Two suppliers

Explanation:

Is necessary to consider different amount of suppliers and evaluate the cost. We will choose the number of suppliers which offers a lower cost.

EMV1 = cost of shutdown*super event risk + cost of shutdown*unique event risk + cost of managing supplier = 480000*.02 + 480000*0.05+16000 = 9600 + 24000 + 16000 = $ 49600

EMV2 = cost of shutdown*super event risk + cost of shutdown*unique event risk of each supplier*unique event risk of each supplier + cost of managing 2 suppliers = 480000*.02 + 480000*0.05*.05+16000*2 = 9600 + 1200 + 16000*2 = $ 42800

EMV3 = cost of shutdown*super event risk + cost of managing 3 suppliers = 480000*.02 + 480000*0.05*.05+16000*2 = 9600 + 16000*3 = $ 57600

Based on the EMV value, the best choice is to use Two suppliers

6 0

2 years ago

Please hep me solve this thank you!Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out a

jarptica [38.1K]

Answer:

$546,750

Explanation:

Sales 2,498,000

COGS (1,376,000)

gross profit 1, 112,000

S&A salaries (219,000)

other S&A (346,000)

underapplied MO (10,250) *

net income 536.750‬

*we need to compare the actual voerhead with the applied overhead:

actual overhead: 176,000 + 420,000 = 596,000

applied overhead:

overhead rate:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

568,000 / 32,000 = 17.75

33,000 x 17.75 = 585.750

overhead

debit credit

596,000 585,750

10,250 underapplied overhead

As the applied was lower it is underapplied we need to recognzie more cot thus, the net income decrease.

4 0

2 years ago

A software company is weighing whether to release a new version of its software. The company can go ahead and release the versio

pentagon [3]

This is an example of vaporware where the company is planning to launch the software and will correct errors along with upgrades.

<h3>What is software?</h3>

A sequence of instructions, data, or programs used to control computers and perform certain activities is known as software. Applications, scripts, and programs that operate on a device are referred to as software.

Vaporware refers to products that are announced but never produced or officially cancelled. It is publicized months or years before it is supposed to be deployed with little information about its development available.

This strategy is useful as it stops customers to avoid switching to competitors' brands and products. These will help to create a buzz in teh market and helps in the retention of the customer.

Learn more about vaporware, here:

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8 0

1 year ago

Evan accidentally quoted a customer a price for new flooring that was more than $1,000 less than the actual price. His manager h

igomit [66]

The Manger Has exercised Concurrent Control on Evan by taking the decision to retrain him.

Explanation:

Concurrent control as the name suggest is the type of control that takes place in the Real-time or at the time the mistake occur.It is a type of a ongoing control and is a continuous process.

This type of control is used to monitor those employees who directly interact with the customers

For Example: A restaurant waiter must be aware about the menu list(Starters,Main Course),A car sales man should be aware about the features of the car and its USP(Unique Selling Proportion)

4 0

2 years ago

Genent%E2%80%8B Industries, Inc.%E2%80%8B (GII), developed standard costs for direct material and direct labor. In%E2%80%8B 2017

Sliva [168]

Answer:

Direct material price variance

= (Standard price - Actual price) x Actual quantity purchased

= ($10 - $7) x 1,300 pounds

= $3,900(F)

Explanation:

Direct material price variance is the difference between standard price and actual price multiplied by actual quantity purchased.

7 0

2 years ago