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3 years ago

A recent income statement of McClennon Corporation reported the following data:

Business

1 answer:

arsen [322]3 years ago

7 0

Answer:

The correct answer is option b.

Explanation:

The number of units of output sold is 8,000 .

The sales revenue is $9,600,000 .

The variable costs are $6,000,000 .

The fixed costs are $2,600,000.

The price of the product

= $\frac{Sales\ Revenue}{Q}$

= $\frac{9,600,000}{8,000}$

= $1,200

The average variable cost is

= $\frac{TVC}{Q}$

= $\frac{6,000,000}{8,000}$

= $750

Profit = TR - TC

Profit = $Price\ \times\ Q - (AVC\ \times\ Q )\ +\ TFC)$

$1,270,000 = $1,200Q - $750Q - $2,600,000

$3,870,000 = $450Q

Q = $\frac{3,870,000}{450}$

Q = 8,600 units

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Answer:

The correct answer is: b, c and d.

Explanation:

Internal controls are are policies or processes put in place by the management arm of a company to ensure that the goals set by the firm are achieved both in the long term and short-term. These processes ensure safe custody of assets, reliability in financial information provided or used by the firm, compliance with regulations as well as effectiveness and efficiency in the day to day operations. With this in mind, maximisation of management compensation is not a goal of internal controls. According to COSO, there are 3 main goals of internal controls: to ensure effectiveness and efficiency of operations, reliability of financial reporting and compliance with laws and regulations.

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Doubling the circumference of an oil pipeline more than doubles the volume of oil that can be pumped through. This strategy is c

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Answer:

Economies of scale

Explanation:

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So, in this case, when the circumference is doubled of the oil pipeline, more than the volume doubles. This technique is selected through the large firms or business as it will result in the economies of scale.

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3 years ago

What are the two most important factors in calculating your credit score?

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Answer:

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2 years ago

On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life with a residual value of $1

UkoKoshka [18]

Answer:

a. Depreciation expense per hour:

= (Cost - salvage value) / Expected operating hours

= (228,000 - 16,000) / 26,500

= $8 per hour

b. First year depreciation: Second year depreciation:

= 1,250 * 8 = 2,755 * 8

= $10,000 = $22,040

Third year depreciation:

= 1,225 * 8

= $9,800

Journal entries

Date Account Title Debit Credit

June 30, Year 1 Depreciation $10,000

Accumulated Depreciation $10,000

Date Account Title Debit Credit

June 30, Year 2 Depreciation $22,040

Accumulated Depreciation $22,040

Date Account Title Debit Credit

June 30, Year 3 Depreciation $9,800

Accumulated Depreciation $9,800

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3 years ago

If the factory overhead is underapplied, then the adjusting journal entry to close the factory overhead account includes a: (Che

Ymorist [56]

Answer:

Debit to cost of goods sold and credit to factory overhead

Explanation:

Here we are interested in knowing the appropriate journal entry when the factory overhead is under applied.

What happens to the factory overhead journal in this case is that the we should have an adjusting journal entry.

The adjusting journal entry here is that we debit cost of goods sold and credit factory overhead

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