Answer:
The number of Gallon materials Howell company should buy is 166000 Gallons
Explanation:
Finished goods
opening inventory 11000
produced
closing inventory 13000
finished goods sold 42000
using the bottom up approach to get goods produced
sold goods + closing goods - opening goods = produced =44000 goods
Direct material ( Gallons)
opening materials 66000
purchased 166000
available for use 232000
used in production 176000
closing gallons 56000
We use the bottom up approach to get the materials to be purchased
closing stock plus used in production to get available for use then subtract opening material to get purchased = 166000
Answer:
Option (d) is correct.
Explanation:
Given that,
Customer purchases $340 worth of merchandise from The GAP using a gift card.
A gift card is having an amount of money that is used by the gift card holder for the purpose of purchasing goods. So, in the books of GAP, the value of gift card is debited as an unearned revenue and the sales revenue is credited.
The journal is as follows:
Unearned revenue A/c Dr. $340
To sales revenue A/c $340
(To record the merchandise sold for a gift card)
Answer:
A higher operating income will result under absorption costing
Explanation:
If manufacturing production exceeds units sold there will be an increase in inventory and increases in inventory cause income to be higher under absorption costing than under variable costing.
Under variable costing, as its name suggests, only variable production costs are assigned to inventory and cost of goods sold.
Under absorption costing, normal manufacturing costs are considered product costs and included in inventory.
<em>Recognize that a reduction in inventory during a period will cause the opposite effect. </em>
<em>Specifically, a portion of the contents of the beginning inventory would be transferred to expense commensurate with the decrease in inventory. </em>
<em>Since the inventory contains less under variable costing, expect expenses to be lower and income to be higher.</em>
Answer:
$9,500
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. Depreciation and other non-cash expenses deducted in the income statements are added back while the non-cash income such gain on asset are deducted from net income.
Yowell's net cash flow from operating activities
= $44,000 - $10,500 - $24,000
= $9,500
Other transactions will be stated in the investing and financing sections of the cash flow statements
