<span>The auditor is generally liable to the bank which subsequently grants the loan for either ordinary or gross negligence.Gross negligence is defined as the extraordinary lack of regard that shows wilful or heedless carelessness for the outcomes to the security or property of another.On the off chance that one has acquired or contracted to deal with another's property, at that point net carelessness is the inability to effectively take the care one would of his/her own property. In the event that gross carelessness is found by the jugde it can bring about the honor of correctional harms over general and extraordinary harms.</span>
If this is a true or false question, this is false. Numerous awards in a great variety could be awarded to a student.
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Answer:
Kodiak Fridgeration Company
Income Statement
For the month ended August 31, xxxx
Sales $8,800,000.00
Less: Manufacturing costs:
Direct materials $3,450,000.00
Direct labor $1,196,000.00
Variable manufacturing cost $782,000.00
Fixed manufacturing cost <u>$598,000.00</u>
<u>($6,026,000.00)</u>
Gross Income $2,774,000.00
Less: Selling & admin expenses
Variable $600,000.00
Fixed $320,000.00
<u>($920,000.00)</u>
Net Income $1,854,000.00
Explanation:
Absorption costing consider all the cost incurred in production either variable or fixed as production cost and all the operating costs as the period costs. It calculates the gross profit after deducting the cost of goods sold from the net sales and net income after deduction the operating costs from the gross profit.
Answer:
d. $25,050.
Explanation:
The computation of the acquisition cost is shown below:
= Cash price of equipment + sales tax + Insurance during transit + Installation and testing
= $22,500 + $1,800 + $320 + $430
= $25,050
To find out the acquisition cost, we have to consider all that cost which is related to the purchase of equipment. Since, all the costs are related, so we have to take all costs which are mentioned in the question.
Answer:
$237,630
Explanation:
Windsor report as its December 31 inventory:
= Inventory in hand as per physical count + Goods purchased from P corporation under FOB shipping basis + Cost of goods sold to A company under FOB destination basis
= $191,500 + $24,510 + $21,620
= $237,630
Therefore, the amount to be reported by Windsor company is $237,630.