Answer:
February 2
Debit Inventory $60,000
Credit Cash/Accounts payable $60,000
February 5
When a return of the item purchased is done,
Debit Cash/Account payable $4,000
Credit Inventory $4,000
Explanation:
In the perpetual inventory system, any movement (sale or return or purchase) must be adjusted in the books once the item moves.
When an item is purchased, such purchase may be done by cash or on account, the entries required are
Debit Inventory
Credit Cash/Accounts payable
When a return of the item purchased is done,
Debit Cash/Account payable
Credit Inventory
Amount returned = $40 * 100
= $4,000
Answer:
75% is the work center utilization
Explanation:
Mathematically;
Utilization = (Actual Output/Design capacity)*100
From the question;
Actual output = 300
Design capacity = 400
Substituting these values in the equation, we have:
= (300/400)*100
= 0.75*100
= 75%
COMMUNIST
Under the Communist System the number of choices in the market is directly related to government involvement in markets.
Communist system is a market system wherein all market decisions are made by the government.
Answer:
The average fixed cost is $2.4.
Explanation:
Vipsana's Gyros House sells gyros.
The cost of ingredients to make a gyro is $2.00.
Vipsana pays her employees $60 per day.
She also incurs a fixed cost of $120 per day.
The cost incurred on ingredients and workers is a variable cost.
The total fixed is thus $120.
The average fixed cost for 50 gyros
= 
= 
= $2.4
Answer:
Comet's E&P will decrease by $50,000 due to the exchange.
Explanation:
50 of Pam's shares are worth 50 x $1,000 = $50,000, since the corporation is redeeming them, it will do so by decreasing its earnings and profits (retained earnings account).
Generally when larger corporations buy back stocks (AKA treasury stocks), they will credit cash and debit treasury stocks, but since Pam's stocks are being retired, they are not going to be held as treasury stocks, therefore E&P must decrease.
