Answer:
The Journal entry with their narrations is shown below:-
Explanation:
The Journal entry is shown below:-
Cash Dr, $1,200
Notes Receivable Dr, $2,800
To Accounts Receivable -R. Roy $4,000
(Being office supply of Vikram is recorded)
Therefore for recording the office supply we simply debited cash and notes receivable and credited the accounts receivable
Answer: The answer is given below
Explanation:
Holding costs are the costs that.has to do with the storage of inventory that were not sold. costs and they are storage space, price of damaged or spoilt goods, labor, and insurance.
It should be noted that with regard to holding cost, increasing peak capacity will be expected to reduce since the capacity is typically inversely proportional to the theory of the holding cost as there may be a reduction in the holding cost so as to increase the capacity.
Answer:
There will be a difference in the income .
Absorption costing income will be lower as it transfers all the fixed costs to the ending inventory.
Variable costing income will be higher as it does not transfer the fixed costs to the ending inventory.
The difference will be of $ 104000
Explanation:
Increase in units 8000
Variable Fixed
Unit manufacturing costs of the period $24.00 $10.00
Unit operating expenses of the period 8.00 3.00
Total Unit Costs $ 32.00 $ 13.00
The net operating income under variable costing for the year will be $ 13* 8000= $ 104000 Lower than the net operating income under absorption costing. This is because the all fixed costs will be treated as period cost rather than product costs.
In variable costing the ending inventory will be $104000 lower than the ending inventory under absorption costing because the fixed costs will not be allocated to products.
Under variable costing, the units in the ending inventory will be costed at $32 each.Under absorption costing, the units in the ending inventory will be costed at $32+ $ 13= $ 45 each.
Answer: -13.35%
Explanation:
Based on the information given in the question, the annual rate of return on this painting will be calculated thus:
Sales price of painting = $1,080,000
Cost price of painting = $1,660,000
The sales Price formula is given as
= Cost price × (1 +r)³
1080000 = 1660000 × (1+r)³
1,080,000/1,660,000 = (1+r)³
0.65 = (1 + r)³
Annual rate of return r will now be:
= 0.6506^⅓ - 1
= -13.35%
