Stanley Corporation manufactures an electronic switch for dishwashers. The cost base per unit, excluding selling and administrat
1 answer:
Answer:
So markup percentage will be 8 % on total unit cost
Explanation:
We have given that cost base per unit including selling and administrative expenses is $60
per unit cost of selling and and administrative expenses is $15
The company desired ROI per unit is $6
We have to calculate the markup percentage on total unit cost
Markup percentage on total unit cost is given by '
markup percentage =
So markup percentage will be 8 % on total unit cost
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Answer:
a. Debit to Prepaid Insurance of $10,000
* Option for this question was missing so I have attached a similar question with this answer and answered accordingly.
Explanation:
Insurance purchased for four years was actually prepaid insurance on May 1, Year 2.
The company expensed all amount by positing following entry ( which is a wrong entry)
DR. Insurance Expense $12,000
Cr. Cash $12,000
It should be entered as follow:
DR. Prepaid Insurance $12,000
Cr. Cash $12,000
At the end of the year 2 8 months has been passed for which $2,000 is accrued and it will be recorded, as all the amount is charged to the expense account we will adjusted the remaining amount of $10,000 to correct this mistake.
Now at the end of year 2 the correct entry which will settle the expense and prepaid insurance as well is as follow.
DR. Prepaid Insurance $10,000
Cr. Insurance Expense $10,000
