Answer:
Option (B) is correct.
Explanation:
Unit of account:
There are some functions of money or we can say that characterstics of money:
(a) Medium of exchange
(b) Store of value
(c) Unit of account
(d) Standard of deferred payments
Sea shells are precious items but one cannot properly split divide those sea shells into small denominations like money does. Money is easily storable, people use as a medium of exchange and unit of account.
By unit of account we mean that we can easily measure the value of goods and service and many things in monetary terms but we cannot measure in terms of sea shells.
That's why sea shells unfit to act as money today.
Answer:
Beginning Raw material Inventory = Direct materials used - Raw Materials purchases + Ending raw materials inventory
= 188,420 - 159,120 + 22,610
= $51,910
Total cost of work in process = Cost of goods manufactured + Work in process (12/31)
= 544,240 + 83,230
= $627,470
Total Manufacturing costs = Total cost of work in process - Work in process (1/1)
= 627,470 - 220,940
= $406,530
Direct labor = Total Manufacturing costs - Total overhead - Direct materials used
= 406,530 - 139,320 - 188,420
= $78,790
Answer:
Wholesaler
Explanation:
The distribution channel is defined or referred to as the overall or whole flow of the information as well as the goods and services from the original manufacturer to the final consumers. And the wholesaler is the one which is known as the distributor, acquire the goods from the manufacturer holds them in the distribution centre and then sells it to the retailers.
So, in this case, in the terms of channel of marketing, the gallery will be referred to as the wholesaler.
Answer:
The annual financial disadvantage is $62,560
Explanation:
<u>Analysis of the Costs of Producing Internally and Buying from External Supplier.</u>
Producing Internally External Supplier
Direct materials $3.50 $0
Direct labor $8.10 $0
Variable manufacturing overhead $8.60 $0
Supervisor's salary $4.00 $0
Depreciation of special equipment $2.40 $0
Allocated general overhead $7.60 $7.60
Extra contribution $0 ($2.19)
Purchases Cost $0 $32.70
Product Cost $34.20 $38.11
<u>Conclusion :</u>
We can see that the Product Cost to produce the part internally costs $3.91 less than the cost to purchase from external supplier. Therefore Sewtfi861 Corp has a disadvantage.
Annual disadvantage = 16,000 units × $3.91
= $62,560
Answer:
Debit : Allowance for doubtful debts = $2900
Credit : Accounts receivables = $2900
Explanation:
An account for allowance for doubtful debts is a contra account created, predicting that certain debtors will not be able to pay for the goods and services they purchased. This may be based on historical experiences. Doubtful debts aren’t officially uncollectible, it is simply an estimation made, but bad debts are, where you have officially written off a certain accounts receivable as uncollectible.
An allowance for doubtful debts is recorded in the balance sheet, directly under accounts receivables. Bad debts are recorded as an expense in the income statement. When there is an allowance for doubtful debts, the bad debts account is debited and the allowance for doubtful debts account is credited.
According to the question, the balance was $2,200 (Cr) in the allowance for doubtful debts account. The initial expected amount for allowance for doubtful debts was $5100 (Cr). This means that the difference was the amount that was declared as uncollectible and officially written off i.e. bad debts. Thus $2900 ($5100 -$2200) would have been confirmed as bad debts.
The entry to record the above transaction is:
Debit : Allowance for doubtful debts = $2900
Credit : Accounts receivables = $2900
