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bekas [8.4K]
3 years ago
15

George Corporation has no beginning inventory and manufactures a single product. If the number of units produced exceeds the num

ber of units sold, then net operating income under the absorption method for the year will:
A) be equal to the net operating income under variable costing.


B) be greater than the net operating income under variable costing.


C) be equal to the net operating income under variable costing plus total fixed manufacturing costs.


D) be equal to the net operating income under variable costing less total fixed manufacturing costs.
Business
1 answer:
laiz [17]3 years ago
5 0

Answer:

Correct option is B.

<u>Be greater than the net operating income under variable costing.</u>

Explanation:

As, in factor costing the closure stock cost will exclude the component of fixed assembling overheads. in any case, if there should arise an occurrence of assimilation costing, the completion stock will have a component of fixed expense. In this way Cost of products sold in less in Absorption costing, and overall gain will be more if there should arise an occurrence of ingestion costing.

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E15-2 (Recording the Issuance of Common and Preferred Stock) Kathleen Battle Corporation was organized on January 1, 2014. It is
Mekhanik [1.2K]

Answer:

Explanation:

Jan 10 Issue of common stock for cash

Dr Cash 400,000 [80,000*5]

    Cr Common stock 80,000 [80,000*1]

    Cr Additional paid in capital - Common Stock [80,000*4] 320,000

Mar 1 Issue of preferred stock foor cash

Dr Cash 540,000 [5000*108]

     Cr Preferred stock [5000*1000] 500,000

     Cr Additional Paid in capital - Preferred stock 40,000

Apr 1 Issue of common stock for land

Dr Land 80,000

   Cr Common stock 24,000

   Cr Additional paid in capital - Common stock 56,000

May 1 Issue of common stock for cash

Dr Cash [80,000*7] 560,000

   Cr Common stock [80,000*1] 80,000

   Cr Additional paid in capital - Common stock 480,000

Aug 1

Dr Attorney 50,000

   Cr Common stock [1*10,000] 10,000

   Cr Additional paid in capital - Common stock 40,000

Sep 1  Issue of common stock for cash

Dr Cash [10,000*9] 90,000

   Cr Common stock [10,000*1] 10,000

   Cr Additional paid in capital - Common stock 80,000

Nov 1  Issue of preferred stock foor cash

Dr Cash 112,000 [1000*112]

     Cr Preferred stock [1000*100] 100,000

     Cr Additional Paid in capital - Preferred stock 12,000

4 0
3 years ago
Any differences in future development of monozygotic twins can be attributed only to _________ factors.
sergejj [24]
<span>Any differences in future development of monozygotic twins can be attributed only to "environmental factors".
</span><span>
</span>
<span>Twins can be either monozygotic or dizygotic. monozygotic refers to the identical twins which means that they develop from one zygote, which splits and forms two embryos. And  dizygotic refers to fraternal twins, which means that they develop from two different eggs. In fraternal twins, each twin is fertilized by its own sperm cell.</span>
6 0
3 years ago
The following information applies to the questions displayed below.
zhenek [66]

Answer:

Lobo Co.

Journal Entries:

Nov. 11 Debit Cash $7,875

Credit Sales Revenue $7,875

To record the sale of 105 razors for cash.

Nov. 11 Debit Cost of Goods Sold $2,100

Credit Inventory $2,100

To record the cost of goods sold for 105 razors at $20 each.

Dec. 16: Debit Cash $16,500

Credit Sales Revenue $16,500

To record the sale of 220 razors for cash.

Debit Cost of Goods Sold $4,400

Credit Inventory $4,400

To record the cost of goods sold.

Jan. 5: Debit Cash $11,250

Credit Sales Revenue $11,250

To record the sale of 150 razors for cash.

Debit Cost of Goods Sold $3,000

Credit Inventory $3,000

To record the cost of goods sold.

Adjusting Journal Entries:

Nov. 30: Debit Warranty Expense $630

Credit Warranty Liability $630

To record the warranty expense for November sales.

Dec. 9: Debit Warranty Liability $300

Credit Inventory $300

To replace 15 razors.

Dec. 16: Debit Warranty Expense $1,672

Credit Warranty Liability $1,672

To record the warranty expense for December sales.

Dec. 29: Debit Warranty Liability $600

Credit Inventory $600

To replace 30 razors.

Dec. 31: Debit Income Summary $2,302

Credit Warranty Expense $2,302

To recognize the warranty expense for the period.

Jan. 5: Debit Warranty Expense $900

Credit Warranty Liability $900

To record warranty expense for January sales.

Jan. 17: Debit Warranty Liability $1,000

Credit Inventory $1,000

To record the replacement of 50 razors.

Jan. 31: Debit Warranty Expense $100

Credit Warranty Liability $100

To recognize warranty expense for January sales.

2. The Warranty Expense for November is $630 and for December is $1,602.

3. The Warranty Expense for January is: $1,000

4. The balance of the Estimated Warranty Liability account as of December 31 is:

= $1,402

5. The balance of the Estimated Warranty Liability account as of January 31 is:

= $1,302

Explanation:

a) Data and Calculations:

Cost per new razor = $20

Retail selling price = $75

Expected warranty costs = 8% of dollar sales

b) Estimated Warranty Liability Account:

Nov. 30: Credit Warranty Liability  $630

Dec. 9: Debit Warranty Liability    ($300)

Dec. 16: Credit Warranty Liability $1,672

Dec. 29: Debit Warranty Liability  ($600)

Dec. 31: Balance                           $1,402

Jan. 5: Credit Warranty Liability    $900

Jan. 17: Debit Warranty Liability ($1,000)

Jan. 31 Balance                            $1,302

Warranty Expense Account:

Nov. 30: Debit Warranty Expense  $630

Dec. 16: Debit Warranty Expense $1,672

Dec. 31: Debit Income Summary $2,302

Jan. 5: Debit Warranty Expense $900

Jan. 31: Debit Warranty Expense $100

Jan. 31: Debit Income Summary $1,000

5 0
3 years ago
If the Japanese production function is Cobb–Douglas with capital share 0.3, output growth is 3 percent per year, depreciation is
miss Akunina [59]

Answer: The saving rate is 0.30

Explanation:

The Golden Rule savings rate is referred to as the rate of savings which maximizes steady state level or growth of consumption.

Let k be the capital/labour ratio (i.e., capital per capita), y be the resulting per capita output ( y = f(k) ), and s be the savings rate. The steady state is referred to as a situation in which per capita output is unchanging, which implies that k be constant. This requires that the amount of saved output be exactly what is needed to one quip any additional workers and two replace any worn out capital.

In a steady state, therefore: sf(k)=(n+d)k

Growth rate of output =3%

Depreciation rate= 4%

Capital output ratio is (K/Y)

= 2.5

Begin the steady state condition:

S= ( σ + n + g) (k/Y)

S= (0.03+0.04) (2.5)

S= 0.175

Golden rule steady state

MPK= (0.03+0.04)= 0.07

Capital output ratio=

K/Y= Capital share / MPK

K/Y= 0.3/0.07

K/Y= 4.29

In the golden state, the capital output ratio is equal to 4.29 in comparison to the current capital ratio 2.5.

The saving rate consistent with the steady growth rate

S= ( σ + n + g) (k/Y)

S= (0.03 +0.04) (4.29)

S= 0.30

The saving rate that is consistent with the steady growth rate is 0.30

6 0
3 years ago
Which of the following is a capital resource? a. A computer programmer. b. A corporate bond issued by a computer manufacturer. c
Furkat [3]

Answer:

The answer is B. corporate bond issued by a computer manufacturer

Explanation:

Capital in business is the money committed to the business by its owner or owners. Capital can also be from a borrowed fund e.g loan

Bond is a long term loan issued to finance a capital project.

Therefore, the corporate bond issued by a computer manufacturer is a capital.

Option A which is a computer programmer is a human asset.

Option C is an inventory (Current assets). This is used to make computer chips.

Option D is an asset

6 0
3 years ago
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