Answer: 37.5(2) + .79(220) + 20 + 74.6 = 343.4
$343.40 is the total cost
Cost per mile = 343.4/220 = $1.56 per mile
$342,000
Regardless if the amount of supplies has not been paid or not, it is still accounted for in the balance sheet. You would have a debit of 342,000 for supplies, credit of supplies payable of 240,000 and a credit to cash for 102,000 assuming that the difference between both amounts was paid for with cash.
Answer:
the retained earnings balance as on Dec 31,2020 is $72,900
Explanation:
The computation of the retained earnings balance as on Dec 31,2020 is given below:
Ending retained earning balance = Opening retained earnings + net income - dividend paid
= $49,000 + $55,900 - $32,000
= $72,900
hence, the retained earnings balance as on Dec 31,2020 is $72,900
Answer:
This method encourages the selling division to operate efficiently.
Explanation:
Absorption cost transfer pricing is very essential to determine the right amount in which goods and services will be sold in the market. It involves setting a price for a particular product with inclusion of all its variable costs.
Absorption cost transfer pricing enables an organization to maximise profit this is because all the different cost incurred during production are added to the price of the product.