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4 years ago

When there is a shortage, rationing is a method of distributing goods by using prices.

1 answer:

6 0

True, rationing is the selling of scarce goods or services in events such as war. Items are distributed in fairness to each citizen and they have to take a ration book to say what they have or haven't had and how much of it they have had.

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Clarksen Company uses a process costing system. The company requisitioned $93,000 of materials for Department A and $67,000 of m

VashaNatasha [74]

Answer:

The correct journal entries should be:

Department A:

Dr Work in progress inventory 93,000

Cr Raw materials inventory 93,000

Department D:

Dr Work in progress inventory 67,000

Cr Raw materials inventory 67,000

Explanation:

Raw materials is an asset account with a debit balance, and since we must decrease it, we have to credit the amounts. Work in progress (WIP) inventory is an asset account so it has a debit balance.

6 0

3 years ago

Zytel Corporation produces cleaning compounds and solutions for industrial and household use. While most of its products are pro

SCORPION-xisa [38]

Answer:

4,513 approx.

Explanation:

The computation of the minimum number of jars of silver polish is shown below:-

Sales revenue for one jar of silver polish $5.60

Sales revenue for 1/4 pound of Grit 337 0.85

($3.40 × 1 ÷ 4)

Incremental revenue from

further processing $4.75

($5.60 - 0.85)

Incremental costs of further processing:

Processing costs $2.40

Selling costs $0.40 $2.80

Incremental contribution

margin from further

processing into silver polish

per jar $1.95

($4.75 - $2.80)

Point of indifference denotes the point where all options are equally profitable. But after that we will see that more processing is profitable. This is due to the fixed costs involved in further production.

Thus Minimum number of jars needed to produce to justify the further processing = Avoidable Fixed cost ÷ Incremental contribution

= $8,800 ÷ $1.95

= 4,513 approx.

8 0

3 years ago

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 72000 units on hand, t

Lyrx [107]

Answer:

"The budgeted cost of goods sold" for June would be $5,640,000

Explanation:

Sales department budget for June = 220,000 units

Less-Opening balance as on 1st June = 72,000 units

Add-Closing balance as on 30th June = 40,000 units

No of unit manufactured = Sales department budget for June - Opening balance as on 1st June + Closing balance as on 30th June

= 220,000 - 72,000 + 40,000

= 188,000 units

Cost per unit = $30

Budgeted cost of manufactured = 188,000 × $30 = $5,640,000

4 0

3 years ago

At its date of incorporation, Wilson, Inc. issued 100,000 shares of its $10 par common stock at $11 per share. During the curren

Alla [95]

Explanation:

The journal entry to record the re-issuance of the stock is shown below:

Cash A/c Dr $240,000 (20,000 shares × $12)

Retained earnings A/c Dr $80,000

To Treasury stock $320,000

(Being the re-issuance of the stock is recorded)

The computation is shown below:

For treasury stock

= 20,000 shares × ($16 per share - $12 per share)

= $80,000

So as we can see the retained earnings is decreased by $80,000

8 0

3 years ago

Janice started receiving an annuity payment of $1,500 per month when she turned 68 years old (expected return multiple for ordin

givi [52]

Answer: 71% or $12,780 annually.

Explanation:

To find the amount of the Annuity that represents a return on Capital each year you divide the cost of the Annuity by the total amount of the Annuity to be received if the single life annuity is used to the fullest.

First then, we would need to calculate the full value of the Annuity.

Janice expects to get $1,500 per month for 17.6 years.

That means the total value would be,

= 1,500 * 12 months * 17.6 years

= $316,800 is the Total Annuity Receivable.

Calculating the return on Capital we will have,

= Cost of Annuity / Total Annuity Receivable

= 225,000 / 316,800

= 0.71022727272

= 71%

Monthly calculated that would be,

= 0.71 (1,500 * 12)

= $12,780

The return on Capital is 71% or $12,780 annually.

8 0

3 years ago