Answer:
The company must not make any adjustment entries in year x3 since the FOB means "Free on board" and at the moment the buyer delivers the goods at the port of shipment, at that time the risks of loss or damage of merchandise are transferred to the buyer from the seller
When this happens, the sale is made since the seller no longer owns the merchandise.
n this case, the seller does not own the merchandise since December 28 and has already made the corresponding records. so he should not make any adjustments.
Answer:
False
Explanation:
In the given question it is mentioned that the employees earned vacation pay of $35,000 during the first year of the operation.
Hence,
the expenses should be recorded as the vacation pay expenses in the same year not in the following year i.e the second year whether the employees take the vacation in the same year or the next year.
Answer:
Sports Merchandise
Explanation:
According to the situation that has been described in the question it can be said that the loss is suffered by Sports Merchandise. This is because a the seller of a good or product is liable for that product until the buyer purchases the product and decides to keep it. Which in this scenario since Sports Merchandise made a mistake on the product size and Quest decided not to accept the product then the responsibility and risk of loss remained with Sports Merchandise as the owner of the product.
Answer:
$6 per unit
Explanation:
using the weighted average method:
units completed 92,000 x 100% (both materials and conversion)
ending work in progress 24,000
- materials 90% completed = 21,600
- conversion 40% completed = 9,600
equivalent unit conversion costs = total conversion costs / total equivalent units of conversion
- total conversion costs = $20,320 + $15,240 + $$182,880 + $391,160 = $609,600
- total equivalent units of conversion = 92,000 + 9,600 = 101,600
equivalent unit conversion costs = $609,600 / 101,600 units = $6 per unit
Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department
stores. The new line would be positioned as a more distinctive brand than the typical glasses sold
through department stores, and would be priced higher than other brands in the store, but a lower price
line than the current Ray-Ban lines that are sold through more selective stores. In determining the price
for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores
<span>and about customers' perceptions of those brands.
</span><span>Given Ray-Ban's plan for positioning the new sunglass line, they should use a <span>price skimming strategy when introducing their new product.
</span></span><span>Price skimming is a pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management.</span>
