Answer:
c. $24.00
Explanation:
The computation of the target cost is shown below:
Target cost = Selling price - (Selling price × profit margin)
where,
Selling price = $30
And, the profit margin is 20%
So, the target cost is
= $30 - ($30 × 20%)
= $30 - $6
= $24
Basically, by using the above formula, we can find out the target cost after considering the selling price and the profit margin
Answer:
c) $ 24,200
Explanation:
Computation of Total Period costs
Fixed selling and Administrative expenses $ 8,800
Variable Selling and Administrative costs
$ 7 per unit * 2,200 units sold <u>$ 15,400</u>
Total period costs $ 24,200
The fixed manufacturing overhead is part of manufacturing costs so not considered.
The variable selling and administrative costs are based on units sold and not units produced.
Answer:
primary source of law, oral, and repetitive
Explanation:
In legal terms, custom and usage is a doctrine widely used in commercial law, since they are a long established practice which many courts consider unwritten laws. Laws are formal and always written, but custom and usage is not formal nor written.
Usage refers to the general repetition of a certain act, while custom refers to the rules that result from such repetitions and usage.
Answer:
income summary 14,000 debit
Retained Earnings 14,000 credit
Explanation:
The last step in the closing prosess it to transfer the income summary account balance into retained earnings.
Income Sumary will be used to close the temporary accounts which are, dividends, revenues and expenses:
Income Sumary
<u>Debit Credit</u>
to close revenues 75,000
to close expenses 42,000
to close dividends 19,000
totals: <u>61,000 75,000</u>
Balance: 14,000
this is the amount to transfer into retained earnings.
