Answer:
a. Cash flow from Finance Activities - Cash Inflow $300,000.
b. Cash flow from Investment Activities - Cash Outflow $270,000.
c. Cash flow from Investment Activities - Cash Inflow $30,000.
d. Cash flow from Finance Activities - Cash Outflow $75,000.
Explanation:
The Statement of Cash flows shows 3 types of Cash flow headings which are :
- Cash flow from Operating Activities
- Cash flow from Investment Activities
- Cash flow from Financing Activities
Operating Activities are Trading activities. Investing Activities involve buy and sell of assets or investment. Finance Activities involve sourcing of finance
Answer:
Entries during the first month would include the following:
Account Title Debit Credit
Interest Expenses $40,260
(1342000*3%)
Kwik $40,260
Cash $459,000
Discount $1,550
Account Receivable $460,550
Sales Return $5,300
Account Receivable $5,300
Allowances for Doubtful Debt $$11,880
Account Receivable $$11,880
Answer:
Total sales variance $87,340 Favorable
See report below
Explanation:
The sales budget for the month of June would like as follows:
Budgeted Sales
Product units Price Total($)
A 40,000 $7 280,000
B 39,000 $9 351,000
Actual sales
Product units Price Total($)
A 39,000 $7.10 276,900
B 49,600 $8.90 441440
Sales Budget Report for the month of June 2019
Budget Actual Variance ($)
A 280,000 276,900 3,100 Unfavorable
B 351,000 441,440 <u>90,440 </u>favorable
Total sales variance <u> 87,340 Favorable</u>
Answer:
1. $5.62
2. $15,174
Explanation:
1. The computation of the cost of one unit of product under variable costing is shown below:-
Total product cost = Direct material + Direct labor + Variable overhead
= $123,000 + $93,000 + $65,000
= $281,000
Unit product cost = Total product cost ÷ Produced units
= $281,000 ÷ $50,000
= $5.62
2. The computation of cost of ending inventory under variable costing is shown below:-
Unsold at end = Unit produced - Unit sold
= 50,000 - 47,300
= 2,700
Cost of ending inventory = Number of units sold × Unit product cost
= $5.62 × 2,700
= $15,174
