Answer:
Hodge Company
Calculation of Estimated Loss on Inventory in the
Flood Using Gross Margin (Profit) Method
November 21, 2016
Inventory at November 1, 2016 $96,000
Purchases from November 1, 2016 <u>$131,000</u>
to date of flood
Cost of goods available for sale $227,000
<u>Estimated cost of goods sold:</u>
Net sales from November 1, 2016 $250,000
to date of flood
Less: Estimated gross margin <u>$75,000</u> <u>$175,000</u>
(250,000 * 30%)
Estimated cost of inventory at date of flood $52,000
Less: Salvage goods <u>$9,200</u>
Estimated loss on inventory in the flood <u>$42,800</u>
Answer:
Be included as a component of income from continuing operations for 20X9
Explanation:
To find out the correct balance of income from continuing operations, we have to add the loss as the loss is added in the income from continuing operations.
Moreover, in this question the golden rule of accounting applies which says:
Debit all losses and expenses and credit all income and gains which apply in the nominal account that record any type of transactions. example - sales account, purchase account, etc.
Answer:
Explanation:
Total cost per unit <u><em>(Which is calculated by adding up the fixed costs and variable costs and dividing by the overall quantity of units produced.)</em></u> is calculated below:
(20 + 30 + 8 + 13 + 12 + 7)
90
Desired return
20% on 1440000
288000
Per unit 288000/10000.
28.8
Markup on cost
Desired return per unit
28.8
Cost 90
28.8 /90 = 32% on cost
Target sale price
90+28.8
= 118.8
Authority or chain of command is the responsibility for certain activity including the rights to make decisions, take action and give orders.
Explanation:
Authority is the manager's formal right to make decisions, issue orders and allocate resources to the desired outcomes of the organization.
Delegation improves the flexibility to meet customers needs and to adapt to competitive environment.
There are three types of authority they are line authority, Functional authority and staff authority. The management process performs tasks like goals of planning, organizing, directing and controlling.
They are commonly referred to as the second part of organizational structure.
Answer and Explanation:
The Journal entry is shown below:-
1. Equity investment Dr, $1,111,200
To Cash $1,111,200
(Being the investment is recorded)
2. Cash Dr, $37,040
(46,300 × $0.80)
To Dividend revenue $37,040
(Being Dividend revenue is recorded)
3. Cash Dr, $37,040
(46,300 × $0.80)
To Dividend revenue $37,040
(Being Dividend revenue is recorded)
4. Fair Value Adjustment Dr, $1,111,200
(46,300 × $27) - $1,111,200
To Fair Value Adjustment $1,111,200
(Being fair value is recorded)