Which of the following scenarios best describes differentiation? Multiple Choice

Based on the following data for the current year, what is the inventory turnover? Sales on account during year $700,000 Cost of

Elodia [21]

Answer:

2.7

Explanation:

The inventory turnover is defined as the ratio between the cost of merchandise sold during the year and the average inventory.

Average inventory can be defined as the mean between initial and ending inventory. The inventory turnover is:

$IT=\frac{\$270,000}{\frac{\$110,000+\$90,000}{2} } \\IT=2.7$

The inventory turnover ratio is 2.7.

3 0

2 years ago

At its $60 selling price, Atlantic Company has sales of $15,000, variable manufacturing costs of $4,000, fixed manufacturing cos

Kay [80]

Answer:

$28

Explanation:

Step 1:

If a company sells a product at $60 each and makes a sale of $15,000, the number of units of items produced is

$15,000 ÷ $60 = 250 units.

Step 2:

To calculate the company's contribution margin per unit,

we have, (unit selling prices - unit production cost)

unit selling price is #60

unit cost of production is (total cost of prodcution ÷ number of units)

total cost of production is $4,000+ $1,000+ $2,000+ $1,000 = $8000

Unit cost of production is $8000 ÷ 250 = $32

i.e it takes $32 to manufacture 1 product.

Contribution margin = $60 - $32

= $28

∴ the contribution margin is $28.

Cheers.

6 0

2 years ago

What is the balance of the manufacturing overhead account and is overhead underapplied or overapplied at the end of the year?.

baherus [9]

The balance of the manufacturer overhead account is Credit of $30,000, overapplied.

credit of $30,000, overapplied.

<h3>Underapplied Overhead vs. Overapplied Overhead</h3>

Underapplied overhead is the opposite of overapplied overhead. Overapplied overhead occurs when expenses incurred are actually less than what a company accounts for in its budget. This means that a company comes in under budget and achieves a lower amount of overhead costs during the accounting period.

Therefore, the correct answer is as given above.

learn more about overhead account from here:

brainly.com/question/26396695

3 0

2 years ago

On January 1, 2018, Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cos

Licemer1 [7]

Answer:

Pension Expense = EBE = $593440 for income statement

Explanation:

The opening balance of the Plan asset is made by the 40000 from 2018 plus interest of 32000 and the new 400000 made this year. Why include it? Because an opening balance are the funds in an account at the beginning of the year either from last year or are from current year but should be the first entry in the books of the current year.

DBO plan asset EBE

opening balance (600000) 832000 -

interest ( 60000) 66560 6560

current year's service cost (600000) (600000)

( 1260000 ) 898560 <u> 593440</u>

balance sheet liability = 361440

5 0

3 years ago

Read 2 more answers

a retailer acquires merchandise for resale. how would this be recorded in a perpetual inventory system?

ella [17]

Debited to the inventory account.

Hope this helps!

5 0

1 year ago