Answer:
Supplies Expense $ 950 Dr.
Supplies Account $ 950 Cr
To record supplies used .
Explanation:
Supplies are assets until they are used. When they are used up their costs are reported as expenses. The cost of unused supplies are recorded in a supplies asset account.
The entry above shows that supplies of $ 950 have been used up during the accounting period from the amount of $ 1385 leaving supplies of $ 435.
Not making an adjustment entry on 31 Dec would underestimate expenses and overstate net income.
Answer:
a) The correlation coeffcient is given by:
And replacing we got:
b) For this case we can conclude that we have a strong, negative linear association between the two stock prices.
Explanation:
Part a
For this case we have the following info:
represent the sample deviation for the variable X
represent the sample deviation for the variable Y
represent the covariance between the variables X and Y
The correlation coeffcient is given by:
And replacing we got:
Part b
Describe the relationship between prices of these two stocks.
For this case we can conclude that we have a strong, negative linear association between the two stock prices.
Answer:
A, B , and E
Explanation:
<u>A. Budgeted purchase prices were set without careful analysis of the market</u>
Budgets are prepared using estimated prices. As much as possible, the budget prices should be the same as market prices. It may happen that during price estimation, some aspects could have been ignored, leading to incorrect purchase prices. It could be possible that the budget prices are overstated. In such a scenario, there would be a favorable price variance to the business.
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<u>B. Materials prices decreased unexpectedly due to industry oversupply</u>
The supply and demand forces determine the prices of raw materials. Low supply will lead to an increase in price as many buyers chase few goods. Constant demand and supply create stable prices. A sudden increase in supply will lead to reduced prices, which will cause favorable variances to the business.
<u>E. The materials purchasing officer negotiated more skillfully than was planned in the budget.</u>
The purchasing manager does the actual buying in any organization. Should the manager be a skilled negotiator, the business stands a better chance of buying goods at low prices. In this case, the purchasing manager negotiated for better prices. The results will be a positive price variance for the company.
