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marissa [1.9K]
3 years ago
7

When preparing journal entries, the account titles are selected using either the dropdown menu (if available) or by keying in th

e account titles.True or False?
Business
1 answer:
Ira Lisetskai [31]3 years ago
6 0

Answer:

True

Explanation:

The journal entries are the recording of the transactions in which the one account is debited and another account is credited along with the description and the date.

If we take the example.

Rent is paid for cash for $10,000

So, the journal entry would be

Rent expense A/c Dr $10,000

      To Cash A/c $10,000

(Being rent is paid for cash is recorded)

So, the given statement is true

You might be interested in
Compute conversion costs given the following data: direct materials, $361,300; direct labor, $195,300; factory overhead, $216,70
Radda [10]

Answer:

a. $412,000

Explanation:

Conversion cost is the combination of direct labor and manufacturing overhead which directly or indirectly are necessary to produce a product other than the direct raw materials.

We know,

<em>Conversion costs = Direct Labor + Manufacturing Overhead</em>

Here,

Manufacturing overhead = Indirect material + Indirect Labor + Indirect overhead (including variable and fixed overhead)

Given,

Direct labor = $195,300

Manufacturing overhead = Factory overhead = $216,700

Selling expenses will not be included because it is not a direct or indirect overhead expense.

Therefore,

<em>Conversion costs = </em>$195,300 + $216,700

<em>Conversion costs = </em>$412,000

8 0
3 years ago
Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.3 cus
S_A_V [24]
  • It is recommended to use one consultant with an average service time of 8 minutes/customer.
  • The total cost for the first scenario where there is one consultant with an average service time of 8 minutes per customer is $ 29.05
  • The total cost for the second scenario where there are two consultants with an average service time of 10 minutes per customer is $ 49.16

<u>Explanation</u>:

Given,

Average customer arrival = λ =2.3 customers/hour

Average consultant time1 = μ  = 8 minutes/customer

Average consultant time2 = μ  = 10 minutes/customer

Cost of consultants service = $18

Cost of customer waiting time = $25

Convert the average consultant time to hours/customer

Average consultant time1 = μ  = 60/8 = 7.5 hours/customer

Average consultant time2 = μ  = 60/10 = 6 hours/customer

  • Single consultant queuing model:

Calculations for one consultant

Average no. of customers waiting for service = Lq = λ²/μ(μ-λ)

Average no. of customers waiting for service = Lq = (2.3)²/7.5(7.5 - 2.5)

Average no. of customers waiting for service = Lq = 0.1356

Average no. of customers in the system = L = Lq + λ/μ

Average no. of customers in the system = L = 0.1356 + 2.3/7.5

Average no. of customers in the system = L = 0.442

Total cost = (customer waiting time cost)*L + consultant service cost

Total cost = $ 25 \times 0.442 + $ 18

Total cost = $ 29.05

  • Multi consultant queuing model:

Calculations for two consultants

Average no. of customers waiting for service,

             Lq = ((λ/μ)^k(λμ)/(k -1)(kμ - λ)) \times P₀

Where k = 2 is the number of consultants and P₀ is the probability that all of the k consultants are idle. The value of P₀  can be found in the tables with λ/μ = 2.3/6 = 0.38 and k = 2,  P₀ ≅ 0.685

Average no. of customers waiting for service,

            Lq = (2.3/6)²(2.3 \times 6) / (2-1)(2 \times 6 - 2.3) \times 0.685

Average no. of customers waiting for service = Lq = 0.1431

Average no. of customers in the system = L = Lq + λ/μ

Average no. of customers in the system = L = 0.1431 + 2.3/6

Average no. of customers in the system = L = 0.5264

Total cost = (customer waiting time cost)*L + consultant service cost

Total cost = $25 \times 0.5264 + ($18) \times 2 (since there are 2 consultants now)

Total cost = $ 49.16

3 0
3 years ago
METS Pens, a pen manufacturing company, sometimes gives away some of its gel pens practically for free but reaps handsome profit
Luda [366]

Answer:

Loss leader strategy

Explanation:

A loss leader is a strategy in which an item or administration that is offered at a value that is not beneficial, yet it is offered to pull in new clients or to offer extra items and administrations to those clients. Loss leading is a typical practice when a business first enters a market. Basically, a loss leader informs new clients with an assistance or item in the desire for building a client base and verifying future repeating income.

5 0
3 years ago
Comparing Three Depreciation Methods
exis [7]

Answer:

1.a

2013 Depreciation

Straight line method $71,250

Units-of-output $102,600

Double declining balance $160,000

2014 Depreciation

Straight line method $71,250

Units-of-output $91,200

Double declining balance $80,000

2015 Depreciation

Straight line method $71,250

Units-of-output $62,700

Double declining balance $40,000

2016 Depreciation

Straight line method $71,250

Units-of-output $28,500

Double declining balance $20,000

1.B Total Depreciation in 4 years

Straight line method $285,000

Units-of-output $285,000

Double declining balance $300,000

2. Double declining balance yields the highest depreciation expense for 2013

3. Double declining balance yields the highest depreciation expense over the FOUR-year life of an equipment

Explanation:

1.A In computing straight line method, the formula would be:

(cost of equipment - salvage value) / life of equipment

2013

(320,000 - 35,000) / 4 years = 71,250

2014

(320,000 - 35,000) / 4 years = 71,250

2015

(320,000 - 35,000) / 4 years = 71,250

2016

(320,000 - 35,000) / 4 years = 71,250

TOTAL DEPRECIATION IN 4 YEAR LIFE OF EQUIPMENT = $285,000 ($71,250 + $71,250 + $71,250 + $71,250)

<em>UNITS-OF-OUTPUT METHOD</em>

Formula: (Cost of equipment - salvage value) / total operating hours of equipment x operating hours used for the year

2013

($320,000 - 35,000) / 20,000 x 7,200

($285,000 / 20,000) x 7,200

14.25 per hour x 7,200 =$102,600

2014

($320,000 - 35,000) / 20,000 x 6,400

($285,000 / 20,000) x 6,400

14.25 per hour x 6,400 =$91,200

2015

$320,000 - 35,000) / 20,000 x 4,400

($285,000 / 20,000) x 4,400

14.25 per hour x 4,400 =$62,700

2016

($320,000 - 35,000) / 20,000 x 2,000

($285,000 / 20,000) x 2,000

14.25 per hour x 2,000 =$28,500

TOTAL DEPRECIATION IN 3 YEAR LIFE OF EQUIPMENT = $285,000 ($102,600 + $91,200 + $62,700 + $28,500)

DOUBLE DECLINING BALANCE

Formula: 100%/life of equipment x 2

*residual value will not be considered in this method of computation of depreciation expense.

2013

100% / 4 years x 2 = 50%

$320,000 x 50% = $160,000

2014

100% / 4 years x 2 = 50%

$320,000 - $160,000 =$160,000

$160,000 x 50% = $80,000

2015

100% / 4 years x 2 = 50%

$320,000 - ($160,000 + $80,000) = $80,000

$80,000 x 50% = $40,000

2016

100% / 4 years x 2 = 50%

$320,000 - ($160,000 + $80,000 + $40,000) = $40,000

$40,000 x 50% = $20,000

TOTAL DEPRECIATION IN 3 YEAR LIFE OF EQUIPMENT = $300,000 ($160,000 + $80,000 + $40,000 + $20,000)

2. Double declining method yields the highest depreciation expense in 2013 in the amount of $160,000 as computed above.

3. The method that yields most depreciation over the four-year life of an equipment is the DOUBLE DECLINING METHOD in a total amount of $300,000.

5 0
4 years ago
Which of the following gives the best definition of cartel?
Ilia_Sergeevich [38]

Answer:

d

Explanation:

6 0
3 years ago
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