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4 years ago

Presented below is information related to Wise Company at December 31, 2017, the end of its first year of operations.

Business

1 answer:

Elenna [48]4 years ago

7 0

Answer and Explanation:

The computation is shown below:

Sales revenue $775,000

Less: Cost of goods sold 350,000

Gross profit 425,000

Less: Selling administrative expenses 125,000

Income from operations 300,000 (a)

Income from operations

Other revenues and gains

Add: Gain on sale of plant assets 75,000

Other expenses and losses

Income before other expenses and losses 375,000

Less: Interest expense 15,000

Income from continuing operations 360,000

Less: Loss on discontinued operations (30,000)

Net Income 330,000 (b)

Net income

Less: Allocation to noncontrolling interest (100,000)

Net income attributable to controlling shareholders $230,000 (c)

Net income $330,000

Add: Unrealized gain on available-for-sale investments 25,000

Comprehensive income $355,000 (d)

e. Retaining earnings opening balance $0

Add: Net income $330,000

Less: Dividends (12,000)

Closing Retained earnings $318,000 (e)

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On January 6, Brumbaugh Co. sells merchandise on account to Pryor Inc. for $7,000, terms 2/10, n/30. On January 16, Pryor Inc. p

Harrizon [31]

Answer:

No. Date Accounts titles and explanation Debit Credit

(a) Jan. 6 Accounts receivable $7,600

Sales $7,600

Jan. 16 Cash $7,296

Sales discounts($7,600 * 4%) $304

Accounts receivable $7,600

(b) Jan. 10 Accounts receivable $13,300

Sales $13,300

Feb. 12 Cash $6,650

Accounts receivable $6,650

Mar. 10 Accounts receivable $133

Interest revenue(6,650 * 2%) $133

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3 years ago

Read 2 more answers

Freshmart, Inc., began operations last year when it produced and sold the same number of units. This year, the company produced

kakasveta [241]

Answer:

Net Income under absorption costing is $11,250.

Explanation:

Absorption Costing Income Statement.

Sales Revenue (750 units × $100) $75,000

Less Cost of Sales

Opening Inventory $0

Add Cost of Goods Manufactured (1,000 units × $55.00) $55,000

Less Closing Inventory (250 units × $55.00) ($13,750)($41,250)

Gross Profit $33,750

Less Expenses :

Selling and administrative expenses :

Fixed ($15,000)

Variable (750 units×$10.00) ($7,500)

Net Income / (Loss) $11,250

Conclusion :

Manufacturing costs under absorption costing include both fixed and variable costs.

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Net Income under absorption costing is $11,250.

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3 years ago

In the United States, nonprofits employ about one in hundred workers, accounting for less paid workers than the entire construct

Elan Coil [88]

Answer:

The correct answer is False.

Explanation:

In the United States there are 1.14 million nonprofit associations and this non-commercial sector represents 8.5% of GDP (against for example 4.2% in France).

These institutions employ 9.3% of the active population, which constitutes a world record. Americans give each year $ 250 billion to these institutions for non-profit purposes, and these donations are tax exempt. Of the amount quoted, approximately 36% goes to the different Churches, 13% goes to education, 8.6% to health, and 5.4% to culture (that is, the latter percentage represents some 13,000 million dollars annually). Cinema-art and the producers of experimental films, cultural foundations, ballet and their dance bodies, publishing houses (especially university), are some examples of non-profit associations in the domain of culture, which year after year They are supported by Americans.

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3 years ago

You love peanut butter. You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought, and

TiliK225 [7]

Answer:

b. your demand for peanut butter increases today.

Explanation:

If the price of a commodity would increase at a later date, consumers would increase demand for the good today. Consumers would be willing to buy as much as they can at the lower price. This would shift the demand curve to the right.

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4 years ago

The production department in a process manufacturing system completed 94,000 units of product and transferred them to finished g

Fofino [41]

Answer:

Weighted Average Method.

a. 110,700 units

b. 106,525 units

c. 82,090 units

FIFO

a. 85,500 units

b. 95,245 units

c. 99,010 units

Explanation:

Calculation of equivalent units of production with respect to direct materials.

FIFO.

a. All direct materials are added to products when processing begins.

Materials

To finish Opening Work in Process 0

Started and Completed 65,800

Closing Work in process (16,700 × 100%) 16,700

Total equivalent units of production 85,500

b. Beginning inventory is 40% complete to materials and conversion costs. Ending inventory is 75% complete as to materials and conversion costs

Materials

To finish Opening Work in Process (28,200 × 60%) 16,920

Started and Completed (65,800 × 100%) 65,800

Closing Work in process (16,700 × 75%) 12,525

Total equivalent units of production 95,245

c. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending Inventory is 30% complete as to materials and 60% complete to conversion costs.

Materials

To finish Opening Work in Process (28,200 × 40%) 11,280

Started and Completed (65,800 × 100%) 65,800

Closing Work in process (16,700 × 30%) 5,010

Total equivalent units of production 82,090

Weighted Average Method.

a. All direct materials are added to products when processing begins.

Materials

Completed and transferred (94,000 × 100%) 94,000

Closing Work in process (16,700 × 100%) 16,700

Total equivalent units of production 110,700

b. Beginning inventory is 40% complete to materials and conversion costs. Ending inventory is 75% complete as to materials and conversion costs

Materials

Completed and transferred (94,000 × 100%) 94,000

Closing Work in process (16,700 × 75%) 12,525

Total equivalent units of production 106,525

c. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending Inventory is 30% complete as to materials and 60% complete to conversion costs.

Materials

Completed and transferred (94,000 × 100%) 94,000

Closing Work in process (16,700 × 30%) 5,010

Total equivalent units of production 99,010

8 0

3 years ago