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mote1985 [20]
3 years ago
15

In the Month of March, Chester Corporation received orders of 154 units at a price of $15.00 for their product Clack. Chester us

es the accrual method of accounting and offers 30 day credit terms. Chester delivers 102 units in March and the balance of 51 units in April. They received payment for 51 units in March, 51 units in April, and 51 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)
Business
1 answer:
julsineya [31]3 years ago
8 0

Answer:

March revenue:

102 units x 15 dollar each = 1,530

April revenue

51 units x 15 dollars each =   765

Explanation:

We recognize based on the delivery of the goods which is the point at which the trasnfer of ownership occurs. Once the good are delvierired; the customer is the owner of them and can use them as see fit, is responsabile for their condition and wellbeing.

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Which type of fund should you consider if you're seeking high long-term returns and can tolerate the normal ups and downs of the
guapka [62]

Answer:

growth funds

Explanation:

If you have done enough research in a particular company to invest in them then growth funds do generate a lot of profit however they are a bit risky.

4 0
2 years ago
Read 2 more answers
Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions fo
makkiz [27]

Answer and Explanation:

Ferris Company

1. Average cost periodic

Dollars $48,000+$ 105,000

= $153,000

Units $11,000+$6,000

= $17,000

153,000 / 17,000 = $9.00 Cost per unit

Cost of Goods Sold:

9,000 units × $9.00= $81,000

Ending Inventory:

8,000 units × $9.00= $72,000

2. Average cost perpetual Jan 5th sales

Dollars 48,000

Units 6000

48,000 / 6,000 = $8.00 Cost per unit

Cost of goods Sold:

3,000 units × $8.00= $24,000

Ending Inventory:

3,000 units × $8.00= $24,000

3. Average cost perpetual Jan 12th sales

Dollars 69,000

Units 8000

69,000 / 8,000 = $8.625 Cost per unit

Cost of Goods Sold:

2,000 units × $8.625

= $17,250

Ending Inventory:

6,000 units × $8.625

= $51,750

4. Average cost perpetual Jan 20th sales

Dollars 60,000+51,750

=111,750

Units 6000+6000

=12,000

111,750 / 12,000 = $9.3125 Cost per unit

Cost of Goods Sold:4,000 units ×$9.3125= $37,250

Ending Inventory:8,000 units × $9.3125= $74,500

Summary of Average Cost Perpetual

Cost of Goods Sold:

Jan 5 3,000 units= $24,000

Jan 12 2,000 units= 17,250

Jan 20 4,000units = 37,250

Total 9,000units = $78,500

Summary of Results

Cost ofGoods Sold EndingInventory

FIFO, Periodic $ 75,000 $78,000

LIFO, Periodic$87,000 $66,000

LIFO, Perpetual $82,000 $71,000

Average Cost, Periodic $81,000 $72,000

Average Cost, Perpetual $78,500 $74,500

8 0
2 years ago
Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,100, $11,100, and
Tomtit [17]

Answer:

Total PV= $25,072.57

Explanation:

Giving the following information:

Cash flows:

Cf1= $6,100

Cf2= $11,100

Cf3= $17,300

Discount rate= 15%

<u>To calculate the present value, we need to use the following formula on each cash flow:</u>

PV= Cf / (1+i)^n

PV1= 6,100 / 1.15= 5,304.35

PV2= 11,100 / 1.15^2= 8,393.19

PV3= 17,300 / 1.15^3= 11,375.03

Total PV= $25,072.57

4 0
2 years ago
John was recently hired by Backstreet Books. At the beginning of the first day on the job, his store manager handed him a small
Lady_Fox [76]

Answer:

<u>compliance-based ethics.</u>

Explanation:

Compliance-based ethics can be defined as a set of rules and conduct for the actions of employees of a particular company to be based on compliance with the laws that regulate business. It is designed to prevent, detect and punish behavior that is not in accordance with a company's pre-established rules.

There are critics who believe that compliance-based ethical codes do not promote individual ethical ability, but rather enforce rules motivated by fear and punishment, as legality and ethics are complementary but not equal.

6 0
3 years ago
On its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million. On its 2009 balance sheet,
Marta_Voda [28]

Answer:

a. The company must have had net income equal to zero in 2009.

Explanation:

If on its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million, and on its 2009 balance sheet, the balance of retained earnings was also equal to $510 million; then what is true is that  the company must have had net income equal to zero in 2009.

Retained earnings is the profit amount or net income left over and taken back into the business after it has paid out dividends to its shareholders.

However it is unlikely that the company will pay out the entire amount it earns in a particular year but a percentage of earnings.

In the case of Sherman, it is unlikely that the company made a profit of $200 million and paid out every bit as dividends to shareholders but what is most likely is that there was no profit made for retention in 2009

5 0
2 years ago
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