Answer:
A liability account used to record the obligation to provide future services or return cash that has been received before services have been provided. ⇒ UNEARNED REVENUE represents cash paid in advance by your customers for future services or goods that you must provide.
B. Costs that result when a company sacrifices resources to generate revenues in the current period. ⇒ EXPENSES represent all the money or resources that a business uses in its regular business operations.
C. A type of asset account used to record the benefits obtained, when cash is paid before expenses are incurred. ⇒ PREPAID EXPENSES represent services paid in advance, e.g. you purchase a 2 year insurance policy.
D. The amount charged to customers for providing goods or services. ⇒ REVENUES represent the money that your company collects or should collect in the future in exchange for providing goods or services to its customers.
Answer:
Explanation:
For Navy contract, the total number of man hours put into production will be:
= 27 × 40 × 2
= 2160 man hours
Then, the units produced per labor hour will be:
= 2540 devices / 2160
= 1.176 units per labor hour.
For Army contracts, the total number of man hours put into production will be:
= 37 × 40 × 3
= 4440 man hours
Then, the units produced per labor hour will be:
= 5940/4440
= 1.338 units per labor hour.
Answer:
Lowest selling price= $28
Explanation:
Giving the following information:
Direct materials $8
Direct labor $9
Variable manufacturing overhead= $7
A special order has been received by Landor for a sale of 25,000 fans to an overseas customer.
The only selling costs that would be incurred on this order would be $4 per fan for shipping.
Because it is a special offer, and there is unused capacity, we will not take into account the fixed costs.
<u>The minimum selling price is the one that equals the unitary variable cost. It is not a price sustainable long term.</u>
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Unitary variable cost= 8 + 9 + 7 + 4= $28
Lowest selling price= $28
Answer:
D. Sole proprietorship
Explanation:
A Sole proprietorship is also referred to as the sole trader. It is the simplest form of business ownership. The business is owned and managed by one person.
Legally, the sole proprietorship is not an independent entity. It means that the business owner is fully liable to the debts and obligations of the business.
Calculation of Cost of Goods Sold for Versaille company:
It is given that Versaille Company has the cost of goods manufactured $325,000, beginning finished goods inventory $150,000, and ending finished goods inventory $175,000. The Cost of Goods Sold can be calculated using the following formula;
Cost of Goods Sold = Cost of goods manufactured + beginning finished goods inventory - ending finished goods inventory
= 325,000+150,000-175,000
= $300,000
Hence, the cost of goods sold for Versaille company is <u>$300,000</u>