Answer:
13 days
Explanation:
We are to calculate the days of inventory on hand.
Days of inventory on hand = number of days in a period/ inventory turnover
Inventory turnover = Cost of goods sold / average inventory
Cost of goods sold = 0.68 x $948,000 = $644,640
Inventory turnover = $644,640 / $23,000 = 28.027826
Days of inventory on hand = 365 / 28.027826 = 13.02 days
I hope my answer helps you
Answer:
Cost of goods manufactured 655,900
Explanation:
<em>First, we add the three cost component:</em>
materials used in production 62,100
direct labor 198,200
overhead 403,100
total cost added during the period 663,400
<em>Then, using the WIP beginning and ending figures, we solve for cost of goods manufactured</em>
WIP january 1st 187,500
cost added 663,400
WP endind <u> (195,000) </u>
Cost of goods manufactured 655,900
Answer:
2) Matching
Explanation:
The matching principle refers to that principle at which the revenues that are recognized in the particular year should be matched with the expenses that are incurred in that particular year
According to the given scenario, it talks about the matching principle at which the expenses are to be reported when the related revenue is recognized
Therefore, it follows the matching principle.
Answer:
$2,800
Explanation:
The computation of the increase in consumption is shown below:
= Marginal propensity to consume × rise in income
= 0.70 × $4,000
= $2,800
Hence, the consumption would be increased by $2,800
We simply applied the above formula i.e. marginal propensity to consume is multiplied with the rise in income so that the correct answer could come
