Answer:
b. credit to Sales Revenue for $600.
Explanation:
The sales tax is 7% of the sales price which is $600
Sales tax=7%*$600=$42
The journal entries for this transaction would have a debit of $642(sales price plus sales tax i.e $600+$42=$642) in the cash account and not credit as shown by option a.
Also, sales revenue would be credited with sales price of $600 while sales tax payable is credited with the amount of sales tax which is $42( not a debit as shown by option e)
Answer:
Annual financial disadvantage = $ (669,600)
Explanation:
Relevant cost are future incremental cash costs that arise as a direct consequence of a decision.
The relevant costs of this decision to disconnected includes the following:
- The variable cost of making the product = $19 per unit
- Sales revenue at a price of $25
- Savings in avoidable fixed costs (102,000-72,000) = 30,000
Annual financial advantage
$
Lost contribution $(25-19)× 4,300 units = (85,800)
Saving in fixed cost = <u> 30,000</u>
M<em>onthly net loss </em><em><u> 55,800</u></em>
Annual financial disadvantage
Monthly net loss × 12 months
= (55,800) × 12
= $ (669,600)
A. The type of manufacturing industry being carried on by Ravi and Raaj with the manufacturing of air purifiers is <u>Gadget manufacturing</u>.
B. The type of trade as per geographical concentration is national trade.
C. The auxiliaries to trade highlighted in the above case include:
- Banking
- Marketing
- Logistics or Storage.
<h3>What are the types of manufacturing industries?</h3>
Types of manufacturing include:
- Clothing and Textiles
- Petroleum, Chemicals, and Plastics
- Electronics (Gadgets), Computers, and Transportation
- Food Production
- Metal Manufacturing
- Wood, Leather, and Paper industries.
Thus, the type of manufacturing industry being carried on by Ravi and Raaj with the manufacturing of air purifiers is <u>Gadget manufacturing</u>.
Learn more about the manufacturing industry at brainly.com/question/26254445
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Answer:
Fifo means First in First out
CP SP
S # 1012 June 1 DVD $113 $161
S# 1045 Nov 1 DVD $ 95 $ 161
Ss # 1056 Nov 30 DVD $ 88 $ 161
Cost of Goods Sold ( using FIFO) = $ 113+ $ 95= $ 208
Weighted average method = Opening inventory + Purchases (amount)/ Units
Weighted Average Method CGS= $ 296/3= $ 98.6= $ 99
The specific identification method would allow to record the prices individually. this method is better in this scenario because the balance sheet would record only the left out balance . the item is removed immediately as soon as the item is sold.
To minimise earnings FIFO is used because the inventory at the beginning has more cost price
To maximise earning LIFO is used because the inventory at the end has less cost price.
I recommend LIFO and specific identification method as both would get desired results. LIFO would give maximum profit and specific would be better in meeting the customers specific needs
Answer:
1. Defencse Dynamics has to sell 325,203 units units to break even on this project.
2. Assuming that the firm can sell 200,000 units, Price it must set to break even is $60.75
Explanation:
The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:
Break-even point in units = Fixed cost/(Selling price per unit-Variable cost per unit) = $10,000,000/(
$41.50 - $10.75) = 325,203 units
The firm can sell 200,000 units.
Price it must set to break even = (Fixed cost/Break-even point in units) + Variable cost per unit = ($10,000,000/200,000) + $10.75 = $60.75