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3241004551 [841]
3 years ago
13

Additional sales were made to Larry by Bird in 2018; inventory costing $24,000 was transferred at a price of $40,000. Of this to

tal, 30% was not consumed until 2019. Larry should record equity income in Worthy in 2018 of _______.
Business
1 answer:
Alona [7]3 years ago
7 0

Answer:

$11,200

Explanation:

As not mentioned in the account. It is Assumed that the Larry and Bird are related parties and Bird made a sale at a transfer price of $40,000 with $24,000 cost of inventory.

Bird can only recognize the equity up to the ratio of inventory used or sold by the related party.

As 30% was not consumed then consumption will be 70%, so 70% of the income is realized and it will be recorded.

Equity Income = $40,000 - $24,000 = $16,000

Realized Equity income = $16,000 x 70% = $11,200

* There is some ambiguity in the question given.

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Drudgen Fitness Inc. is a fitness equipment provider that markets its products through a chain of retailoutlets in four states.
Anarel [89]

Answer:

4) buying and installing new computers in the new outlets

Explanation:

The five component model of information systems includes what a company needs to create is IT infrastructure and it includes:

  1. people: I firmly believe that people are the most important component of any system, at least until AI replaces us.
  2. hardware: refers to the equipment needed (e.g. computers, etc.)
  3. software: includes both system (windows or linux) and applications software (e.g. ERP software)
  4. database: the place where collected data is stored, e.g. physical storage devices or cloud storage
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8 0
3 years ago
In 1 or 2 sentences, define an externality and explain how the government makes companies take responsibility for negative exter
tamaranim1 [39]

In economics an externality is the cost or benefit that affects someone who did not choose this. It is the true cost of a product that can be both positive or negative. Pollution can be an example of this. An educated labor force producing more is a positive example of this. The government rewards positive externality and punishes negative externality. Rewards can be surpluses and taxes can be punishments.

7 0
3 years ago
A company that makes organic fertilizer has supplied the following data: Bags produced and sold 200,000 Sales revenue $ 1,560,00
Readme [11.4K]

Answer:

The company's degree of operating leverage is closest to $840000

Explanation:

Selling price per unit = Sales revenue / No. of bags sold

= $1560000/200000 bags = $7.8 per bag

Variable cost per unit=Total variable expenses/No. of units

= $840000/200000 units = $4.2 per bag

Company’s unit contribution margin = Selling price per unit-Variable cost per unit

= $7.8 per unit-$4.2 per unit = $3.6 per unit

Company's degree of operating leverage = Variables manufacturing expense + Variable selling and administrative expense

=$660000+$180000 = $840000

5 0
3 years ago
Accrued salaries payable of $100000 were not recorded on December 31, 2017. Office supplies on hand of $57000 on December 31, 20
Dennis_Churaev [7]

Answer:

In 2017

Net Income and Retained Earning are overstated by $100,000

Expenses and Payables are understated by $100,000.

In 2018

Inventory, Net Income and Retained Earning are understated by $57,000

Expenses are overstates by $57,000

Explanation:

Accrued Salaries is Recorded as follow

Dr. Salaries Expense

Cr. Salaries Payament

Non recording of this entry will result in understatement of Expenses and Payables by $100,000 over statement of Net income and retained earning by the same amount.

Treatment of Office supplies of $57,000 as expense will overstate the expenses  and understate the the inventory, Net income and Retained Earning.

7 0
3 years ago
In a process costing system, the number of units started and completed for a period is equal to: Multiple Choice Units transferr
riadik2000 [5.3K]

Answer:

Units transferred out less units in beginning work in process.

Explanation:

A process costing system is generally used when similar or identical products are mass produced.

To determine the total number of units transferred out = beginning work in process + units started and transferred out - ending work in process

To determine the amount of units started and completed = total units transferred out - beginning work in process

6 0
3 years ago
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