Answer:
True because in the case if the the company is producing single product then the method is simple. If the company is making number of products we have to assume a sales mix to calculate breakeven point. Reaching breakeven point is not easy in multi products case. To calculate breakeven point we have to calculate weighted average contribution per unit to put the values in the following formula:
Breakeven point (units) = Fixed cost/ weighted average cost per unit
Answer:
c. Implement a plan of action.
Explanation:
You already made your decision, so you've already considered all the outcomes and checked whether you have the resources needed for this. So the only thing left to do is to implement the plan of action
<span>b. 3.00 is the answer, I believe!</span><span />
Answer:
C) Operating expense of $800,000 and liability of $800,000
Explanation:
As based on accrual basis, an expense is the amount recognized and provided in the period to which it relates, if not paid then it is a liability and an expense.
Whereas a contingent liability is the one which is provided only in notes as the probability of its occurrence is estimated to be less than the probability of its non occurrence.
A contingent liability, when is sure to be incurred, and even the amount is known, then it is recorded as and when know, and not delayed.
Here, in the given instance the recall has to be made, and it is 100% sure, also the amount is know that is $800,000 and thus, it shall be provided in operating expense, and in balance sheet as a liability.
Explanation:
The journal entry is shown below:
Finished goods inventory A/c Dr $432,000
To Goods in process inventory A/c $432,000
(Being the goods transferred from production to finished goods is recorded)
For recording this given transaction, we debited the finished goods inventory account and credited the goods in process inventory account.
