What is the definition of business
1 answer:
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Answer: $104,360
Explanation:
The cash collections for June will be;
= June Cash sales + (50 % *June credit sales ) + (43% * May credit sales) + ( 5% of April credit sales)
= 58,000 + (0.5 * 55,000) + (0.43 * 42,000) + ( 0.05 * 16,000)
= 58,000 + 27,500 + 18,060 + 800
= $104,360
Answer:
The correct answer is option C.
Explanation:
Italy and Sweden both produce jeans and stained glass.
Italy's opportunity cost of producing a pane of stained glass
= 4 pairs of jeans
Sweden's opportunity cost of producing a pane of stained glass
= 10 pairs of jeans
Since Italy has a lower opportunity cost of producing glass, so we can say that it has a comparative advantage in the production of glass.
Italy's opportunity cost of producing a pair of jeans
=
= 0.25
Sweden's opportunity cost of producing a pair of jeans
=
= 0.1
Sweden has a lower opportunity cost in the production of jeans, so it has a comparative advantage in the production of jeans.
So, Italy will produce and export glass and Sweden will produce and export jeans.
Both the countries will gain from trade if the trade price lies between their opportunity cost.
So the trade price will be 8 pairs of jeans per pane of stained glass.
The difference in the ending inventory relates to a difference in the handling of fixed manufacturing overhead costs.
Under variable costing, these costs have been expensed in full as period costs.
Under absorption costing, these costs have been added to units of a product at the rate of $10 per unit ($100,000/10,000 units produced = $10 per unit).
Thus, under absorption costing a portion of the $100,000 fixed manufacturing overhead cost for the month has been added to the inventory account rather than expensed on the income statement:
Added to the ending inventory:
(2,000 units x $10 per unit) $ 20,000
Expensed as part of the cost of goods sold:
(8,000 units $10 per unit) $ 80,000
Total fixed manufacturing overhead cost for the month: $100,000
Because $20,000 of fixed manufacturing overhead cost has been deferred in inventory under absorption costing, the net operating income reported under that costing method is $20,000 higher than the net operating income under variable costing(refer to the first image)
And for question refer to the second image.
Hence, The difference in the ending inventory relates to a difference in the handling of fixed manufacturing overhead costs.
Learn more about absorption costing:
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