Answer and Explanation:
The journal entries are shown below:
On Jan 1
Cash $340,000
Bonds payable $340,00
(Being the bond payable is issued for cash)
For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities
On Dec 31
Interest expense ($340,000 × 8%) $27,200
To Cash $27,200
(Being the interest expense for year 1 is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets
On Dec 31
Interest expense ($340,000 × 8%) $27,200
To Cash $27,200
(Being the interest expense for year 1 is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets
Answer:
The correct answer is letter "B": lowers unit costs.
Explanation:
Traditional manufacturing is the production process by which companies produce goods part to be delivered for sale and part to have them stored in case of shortages which could increase inventory costs.
Flexible manufacturing concentrates on using technology for mass-production of products characterized to be subject to rapid market changes. <em>Flexible manufacturing saves money in labor costs, thus, lowers the unitary costs of the output.</em>
Answer: expected; expected
Explanation:
The Phillips curve is an economic concept whereby it is stated that there is a stable and inverse relationship between inflation and the unemployment in an economy.
According to this theory, inflation is as a result of economic growth and this will lead to reduction in unemployment.
There is a different short-run Phillips curve for every level of the expected inflation rate. The inflation rate at which the short-run Phillips curve intersects the long-run Phillips curve equals the expected inflation rate.
Answer:
The macro environment represent the different external stakeholders who may be indirectly connected to the company
Explanation:A company macro environment represent the bigger picture within which the company is situated .this may include activities in other industries, government regulations and policies foreign markets,etc
Answer:
The amount of overhead debited to Work in Process Inventory should be: a. $182,00
Explanation:
The Overheads are Applied in the Manufacturing Costs as:
Budgeted Rate × Actual Activity for the Month
At the End of the Period we would need to determined whether this amount of overhead is Over or Under Applied by comparing it to the actual overheads incurred of $180,000 (given)
In our Case, the predetermined overhead rate is 70% of direct labor cost
<em>Thus we need to find the Direct Labor Cost first</em>:
Total Labor Costs $360,000
<em>Less </em>Indirect Labor Costs<em> </em>$100,000
Direct Labor Cost $260,000
<em>Therefore Overheads applied would be determined as:</em>
= $260,000 × 70%
= $182,000
