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Marina CMI [18]
3 years ago
15

New Age Computers manufactures and sells pagers and radio paging systems which include a 180 day warranty on product defects. It

also sells an extended warranty which provides an additional two years of protection. On May 10, it sold a paging system for $4,500 and an extended warranty for another $1,400. The journal entry to record this transaction would include:
Business
1 answer:
alukav5142 [94]3 years ago
7 0

Answer:

Given that,

sold a paging system = $4,500

Sold extended warranty = $1,400

The journal entry to record this transaction would include:

(i) cash account Dr. $4,500

       To Sales A/c                 $4,500

(To record the sales)

(ii) Cash A/c Dr. $1,400

       To Unearned revenue A/c $1,400

(To record the service revenue)

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Lee is the product manager for a software program sold by Company ABC. In evaluating the product, Lee determines that something
dezoksy [38]

Answer:

Explanation: The marketing mix consists of a number of factors that a producer usually exploits in order to influence consumers to purchase his/her products and services.

The marketing mix consists of:

- Product

- Price

- Place

- Promotion.

The above are usually called the 4Ps of marketing.

Of the four factors of the marketing mix, the factor that will the easiest for Lee to change will be the price.

This is because, often times, the price of a product or service will be the major determinant in the success of said commodity, and this is due to the fact that customers will compare the product being offered with its price in order to judge whether the product is worthy of the value placed on it.

Therefore, in order for Lee to influence the potential customers to make purchases, the price of the software program will be the easiest to be reviewed, and it should be set to a level where potential customers will be influenced to exchange their money for the software program.

8 0
3 years ago
At a volume of 5,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $14,000 in fixed costs. If vol
shusha [124]

Answer:

If volume increases to 6,000 units and both 5,000 units and 6,000 units are within the relevant range, the company would expect to incur total factory overhead costs of $35,600

Explanation:

At a volume of 5,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $14,000 in fixed costs.

The variable in factory overhead costs = $32,000 - $14,000 = $18,000

The variable in factory overhead costs per unit = $18,000/5,000 = $3.6

Both 5,000 units and 6,000 units are within the relevant range. Therefore, when volume increases to 6,000 units, fixed costs are not change.

The variable in factory overhead costs = $3.6 x 6,000 = $21,600

Total factory overhead costs = $21,600 + $14,000 = $35,600

4 0
3 years ago
Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing ha
svet-max [94.6K]

Answer:

Material Price Variance= $ 2850 Unfavorable

Material Quantity Variance=$ 900 unfav

Total direct materials variance $ 3750

Direct Labor Rate  variance= $ 3325 fav

Direct labor time variance= 3200 Unfavorable

Total Direct Labor Cost Variance= 125 fav

Explanation:

Standard wage per hour $20

Standard labor time per faucet 30 min  = 0.5 *5000= 2500 Hrs

Standard number of lbs. of brass 2.5lbs

Standard price per lb. of brass $1.80

Actual price per lb. of brass $1.95

Actual lbs of brass used during the week 13,000 lbs

Number of faucets produced during the week 5,000

Actual wage per hr. $18.75

Actual hrs for the week (70 employees x 38 hours) 2,660

 

Material Price Variance= (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)

Material Price Variance= ($ 1.95 *13000)-($1.8 *5000*2.5)= ($ 1.95 *13000)-($1.8 *12500)= $ 25350 - $  22500= $ 2850

Material Price Variance= $ 2850 Unfavorable

Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

Material Quantity Variance=($1.8 *13000)-($1.8 *12500)= 23400- 22500

Material Quantity Variance=$ 900 Unfav

Total direct materials variance =Material Price Variance + Material Quantity Variance= 2850 + 900 = $ 3750 Unfav

Direct Labor Rate  variance= (actual hours* actual rate)- (actual hours * standard rate)

Direct Labor Rate  variance=( 2660 *18.75)  - (2660*20)= 49875- 53200

Direct Labor Rate  variance= $ 3325 fav

Direct labor time variance= (actual hours* standard rate)- (standard hours * standard rate)

Direct labor time variance= (2660 *20) -(0.5 * 5000*20)

Direct labor time variance= 53200-50,000

Direct labor time variance= 3200 Unfavorable

Total Direct Labor Cost Variance= Direct Labor Rate  variance + Direct labor time variance= 3325 fav- 3200 unfav= 125 fav

4 0
3 years ago
Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $10 m
Bas_tet [7]

Answer:

0.1125 or 11.25% for each firm

Explanation:

Given that,

Each has $10 million in invested capital,

$1.5 million of EBIT

25% federal-plus-state tax bracket

ROIC for LL:

= [EBIT × (1 - tax rate)] ÷ invested capital

= [1.5 × (1 - 25%)] ÷ 10

= 0.1125 or 11.25%

ROIC for HL

= [EBIT × (1 - tax rate)] ÷ invested capital

= [1.5 × (1 - 25%)] ÷ 10

= 0.1125 or 11.25%

Therefore, the return on invested capital (ROIC) for each firm is 11.25%

6 0
3 years ago
"A marketing management technique whereby the company's current product offerings are reviewed to ascertain whether each product
Burka [1]

Answer:

Product audit.

Explanation:

Product audit is defined as an evaluation of a finished product to see if it's use meets the intent or purpose of the product.

It involves a thorough check on the product to ensure it serves its purpose before it is release and supplied to the customer.

Product audit takes place after manufacturing is complete, if the product does not meet specified standards the auditor logs a non conformance. The products are usually repaired. If this is not possible the product is discarded.

3 0
3 years ago
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