Answer:
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.
Explanation:
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.
Answer:
Dallas Boot Corporation
Assuming that there would be no commission on this potential sale, the lowest price the firm can bid is some price greater than:_________
= $20.
Explanation:
a) Data and Calculations:
Pairs of military combat boots on the bid = 1,000
Direct material $8
Direct labor 6
Variable overhead 3
Variable selling cost (commission) 3
Fixed overhead (allocated) 2
Fixed selling and administrative cost 1
Total cost of production and sales $23
Less commission 3
Total cost per boot $20
b) The bidding price less sales commission will be a price that is greater than $20 per boot. The extra amount per boot will cover the profit expected from the transaction.
Answer:
The cash budget is the appropriate answer
Explanation:
When the budgeted direct materials as well as the required budgeted labor hours are ascertained, the step needs to be taken further in order to know how the costs budgeted fit into overall cash situation of the business.
The suppliers of direct materials would have given the company the maximum number of days that expect cash , in order to meet up with such deadline the company must plan ahead by incorporating the values of such purchases into cash flow projections, the same also applies to cost of direct labor.
Answer:
b. III and IV
Explanation:
Diego has expected life of 6 month due to his liver disease. He wants to sell his life insurance policy to a company. If he sells the policy, when Diego dies the company will receive all the benefit and will be taxed at ordinary income tax rate. The proceeds are not tax free. In case if Diego sells the policy to his cousin, he will also be taxed on proceed. The tax will be ordinary income tax on the benefit from life insurance policy.
