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azamat
3 years ago
9

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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Answer:

$1,500

Explanation:

On the end-of-period spreadsheet, the credit adjustment of $500 is made in the Debit balance of Supplies inventory, which will net off the values and resulted Supplies Inventory value will be $1,500 at the end of the year and it will be reported on the financial statements. $1,500 should be appeared for supplies in the adjusted Trial Balance column.

7 0
3 years ago
Suppose that the European Union is now experiencing a recession. Its actual real GDP is €200 billion, and the estimate of its po
jek_recluse [69]

Answer and Explanation:

As per the data given in the question,

The central bank have various tools to apply expansionary policy and these tools are :

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- Discount rate.

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Nominal interest rate is the cost of borrowing so if there is decrement in interest rate, there would be consumption and investment activities. these both are the component of aggregate demand so the aggregate demand will increase, and this increment in aggregate demand helps the economy to recover in the situation of recession.

6 0
3 years ago
Which describes the process of how a business incorporates?
vampirchik [111]

Answer:

A) The business must gain government permission and issue a stock sale, followed by a shareholder vote.

5 0
3 years ago
A seller listed a home for $200,000 and agreed to pay a commission rate of 5%. The MLS stated that the commission would be share
earnstyle [38]

Answer:

The selling sales associate received $2,700

Explanation:

The final number was 180 thousand dollars. Then the MLS chared 5% of the total sale. Thus, 9 thousand dollars is the commission. Now, the commission was divided again and the sales associate received 50% of the listing office's commission. So those 9000 are divided in 2 and we get 4500 which then are divided and the selling sales associate receives the 60% of that amount or 2700 dollars.

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Midwest Corporation has provided the following data concerning manufacturing overhead for 2020: Estimated manufacturing overhead
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$18,000

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But before that first determine the overhead rate which is

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= $18,000

Hence, the amount of applied manufacturing overhead is $18,000

5 0
3 years ago
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