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Westkost [7]
3 years ago
5

Wright maintains an ending inventory for each month in the amount of one and one-half times the expected sales in the following

month. The ending inventory for February (March’s beginning inventory) reflects this policy. Materials cost $5 per unit and are paid for in the month after production. Labor cost is $9 per unit and is paid for in the month incurred. Fixed overhead is $13,000 per month. Dividends of $20,200 are to be paid in May. The firm produced 7,000 units in February.

Business
1 answer:
Harlamova29_29 [7]3 years ago
5 0

<u>Explanation:</u>

In the above problem the cash payments of wright corporation is given. From which the production schedule and summary of payments for the month of March, April and May are calculated.

The inventory of the given month is taken as 1.5 times the projected sales for the next month.  Material cost and labor cost is given per unit cost on the projected sale for last month.

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Answer:

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $82,000

Adjustment made:

Add : Depreciation expense $10,000

Less  : Gain on the sale of land ($3,000)

Less: Increase in current assets -$11,000 ($78,000 - $67,000)

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Total of Adjustments -$5,000

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3 years ago
Holiday Corp. has two divisions, Quail and Marlin Quail produces a widget that Marlin could use in its production Quail's variab
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Answer:

Cost savings when transfer are made = $0

Explanation:

In the question it was given that Quail is operating at capacity, then the  Minimum and Maximum transfer price would be market price = $15.80

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Cost savings when transfer are made = $0

5 0
3 years ago
Which of the following is a general two-year college-level degree?
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Answer:

an associate's degree

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A bachelor's degree takes four years, while a master's degree requires getting a bachelor's degree first.

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The journal entry for the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.

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Explanation:

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