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Naddik [55]
3 years ago
6

Mountaineer Excavation operates in a low-lying area that is subject to heavy rains and flooding. Because of this, Mountaineer pu

rchases one year of flood insurance in advance on March 1, paying $36,000 ($3,000/month).
Required:
1. Recore the purchase of insurance in advance on March,1.
Business
1 answer:
Serjik [45]3 years ago
4 0

Explanation:

1. The journal entry is as follows:

On March 1

Prepaid insurance A/c Dr $36,000

       To Cash A/c $36,000

(Being the prepaid insurance is recorded for cash)

For recording the advance purchase of insurance, we debited the prepaid insurance and credited the cash account. Both the accounts are recorded at $36,000 so that the proper posting could be done.

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3. Franchising is widely used in the casual dining and fast food industry, yet Starbucks is quite successful with a large number
Softa [21]

Starbucks doesn't franchise.

Explanation:

Starbucks doesn't franchise because they want to run their own stores and can control the quality and profits.

In addiction, franchising is a way for companies to expand fast with less money. Starbucks is relying on their name to continue its success and growth. According to Starbuck's investor report , "Seattle's best coffee brand does offer franchise opportunities to qualified and select applicants , using a predefined set of criteria and focusing on multi-unit franchisees with a proven track record of success."

Starbucks pursues join ventures. Starbucks can be found in several grocery stores and retail stores. Starbucks has the name tights  but it is using the location of these venues to promote the product and introduce new customers in the Starbuck's pool.

3 0
3 years ago
An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Da
tamaranim1 [39]

Answer:

Product                              LN          JQ            RQ

Ranking                            1st        2nd        3rd

Explanation:

<em>Whenever a company is faced with a limiting factor i.e a resource in short supply, the company should allocate the resource to the product with he highest contribution per unit of the scare resource .</em>

<em>Jordision should rank rank its products using contribution per minute of constraint</em>

<em>Ths is done as follows:</em>

\Product                              LN          JQ            RQ

Selling price                       161.72    50.32     468.25

Variable cost                    <u>(118.94)   (241.42)   (342.92)</u>

Contribution (a)                        42.78      108.9    125.33

Minute        (b)                       <u>   2.30      6.60      8.30</u>

Contribution/minute($)a/b          18.6 16.5   15.1

Ranking                                       1st        2nd        3rd

6 0
3 years ago
Sunland Company is planning to sell 1000 buckets and produce 980 buckets during March. Each bucket requires 500 grams of plastic
Tatiana [17]

Answer: $8820

Explanation:

The total amount of budgeted direct labor for March will be calculated thus:

Production in March = 980

Estimated labor hour = 0.5hour

Labor rate per hour = $18

Total amount of budgeted labor hour will be:

= 980 × 0.5 × $18

= $8820

7 0
3 years ago
If the contribution margin is not sufficient to cover fixed expenses:.
Elan Coil [88]

If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

<h3>What is a Contribution Margin?</h3>

The contribution margin can be expressed in gross income terms.  After subtracting the variable element of the firm's expenditures, it indicates the extra money gained for each product sold.

The contribution margin is calculated by subtracting the selling price/unit from the variable cost/unit.

This metric displays how much a certain product adds to the company's total earnings. It displays the share of revenue that helps to pay the firm's fixed costs and gives one approach to illustrate the profit potential of a certain product supplied by a company.

Therefore, If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

Learn more about contribution margin here:

brainly.com/question/24881206

7 0
2 years ago
If the company plans to amortize these costs according to gaap, what amount of start-up costs should be amortized in 2017, assum
DerKrebs [107]
<span>There are no differences in accounting between research costs and development costs. Research costs are capitalized and amortized over the life of the project, whereas development costs are expenses as incurred. Research costs are capitalized and amortized until the product goes to market, whereas development costs are capitalized and amortized from the time the product hits the market until the product is withdrawn from the market. Research costs are expended as incurred, whereas development costs are capitalized and amortized over the life of the new product</span>
8 0
3 years ago
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