Debbi Fields' success as an entrepreneur can be attributed to her prior business training and

1. In each of the following situations, identify which of the twelve principles is at work

aleksklad [387]

Answer:

a. The true cost of something in its cost of opportunity

Explanation:

Opportunity cost is the cost which is defined as the cost or expense of one item which is lost in order to get the opportunity to do or to consume something else. In simple words, it is the value or the cost of the next best available alternative.

So, when the person select to bought the textbooks through Chegg instead paying the higher price for the same books through the bookstore. Under this situation, the principle applies is the cost of something in its opportunity cost.

8 0

3 years ago

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers

Alchen [17]

Answer: Please see answer in the expalantion column

Explanation:

To record merchandise sold on account

Date Account Titles and Explanation Debit Credit

Mar 2 Accounts Receivable-Equinox Co $20,000

Sales $20,000.

To record cost of merchandise sold on account

Date Account Titles and Explanation Debit Credit

Mar 2 Cost of Merchandise Sold $13 150.00

Merchandise Inventory $13,150.00

To record merchandise sold for cash

Date Account Titles and Explanation Debit Credit

Mar 3 Cash(10,950 + 657) $11,607.00

Sales $10,669.00

Sales Tax Payable(10,950 x 6%) $657.00

To record cost of merchandise sold on account

Cost of Merchandise Sold $7,100.00

Merchandise Inventory $7,100.00

To record cost of merchandise sold on account

Date Account Titles and Explanation Debit Credit

Mar 4 Accounts Receivable-Empire Co $51,450.00

Sales $51,450.00

To record cost of merchandise sold on account

Cost of Merchandise Sold $35,420.00

Merchandise Inventory $35,420.00

To record merchandise sold using Master card

Mar 5 Cash(27900 +1,674) $29,574

Sales $27,900

Sales Tax Payable(27,900 x6%) $1,674

To record cost of merchandise sold using Mastercard

Cost of Merchandise Sold $18, 470.00

Merchandise Inventory $18,470.00

To record receipt of check from Equinox Co

Date Account Titles and Explanation Debit Credit

Mar 12 Cash(20,000-200) $18,000

Cost of merchandise sold (20,000 x 1%) $ 200

Account Receivable-Equinox Co $20,000

To record cost of merchandise sold using American Express

Date Account Titles and Explanation Debit Credit

Mar 14 Cash $12,380

Sales $12,380

To record cost of merchandise sold on account

Cost of Merchandise Sold $9,120

Merchandise Inventory $9,120

To record merchandise sold on Account

Date Account Titles and Explanation Debit Credit

Mar 16 Accounts Receivable-Targhee Co $28,500

Sales $28,500

To record cost of merchandise sold on account

Cost of Merchandise Sold $14,690

Merchandise Inventory $14,690

To record credit memo for returned merchandise

Date Account Titles and Explanation Debit Credit

Mar 18 Sales $4,400.00

Accounts Receivable-Targhee Co $4,400.00

To record cost of merchandise sold on account

Cost of Merchandise Sold $2,910.00

Merchandise Inventory $2,910.00

To record merchandise sold on Account

Date Account Titles and Explanation Debit Credit

Mar 19 Accounts Receivable- Vista Co $7,400

Sales $7,400

To record cost of merchandise sold on account

Cost of Merchandise Sold $4,630

Merchandise Inventory $4,630

To record freight charges on behalf of Vista Co

Accounts Receivable- Vista Co $55.00

Cash $55.00

To record transaction of receipt of check from Targhee Co(

Date Account Titles and Explanation Debit Credit

Mar 26 Cash (24,100 - 241) $23,859

Cost of merchandise sold(24,100 x1%) $241

Account Receivable-Targhee Co(28,500 -4,400) $24,100

To record transaction of receipt of check from Vista co

Date Account Titles and Explanation Debit Credit

Mar 28 Cash(7455-149.1) $7,305.00

Sales Discount (2% x $7455) $149.10

Account Receivable-Vista Co $7,400 +55) $7,455

To record transaction of receipt of check from Empire Co

Date Account Titles and Explanation Debit Credit

Mar 31 Cash $51,450.00

Account Receivable- Empire Co $51,450.00

To record payment of delivery for mechandise

Date Account Titles and Explanation Debit Credit

Mar 31 Delivery Expenses $5,100.00

Cash $5,100.00

To record p[payment of service charges to BANK

Apr 3 Credit card Expenses $850

Cash $850

To record payment of Sales Tax Division

Apr 15 Sales Tax Payable $6,212

Cash $6,212

3 0

3 years ago

Oahu Industries' average total assets for the year are $4,000,000, its average total stockholders' equity for the year are $3,00

Mandarinka [93]

Answer:

20%

Explanation:

Return on assets is a profitability ratio that shows how much in net income a company is able to generate from its assets.

It is a financial measure that shows the net profit a company is able to generate per $1 invested in assets.

Mathematically,

Return on asset = net income/average total asset

= $800,000/$4,000,000

= 0.2

= 20%

This means that the company's management is a to generate a net income of 20 cents for every $1 invested in assets.

8 0

3 years ago

If management wants the most accurate product cost, which of the following costing methods should be used? a. Volume-based costi

Fynjy0 [20]

1. If management wants the most accurate product cost, which of the following costing methods should be used?

Answer:

c. Activity-based costing

Explanation:

In activity based costing, You only assign cost to a certain products and services based on your actual consumption. This will include indirect cost that might be overlooked by other from of costing methods.

For example, other type of costing might only account the total material or price of the machines when calculating the total cost of creating product. As a matter of fact, this will undervalue the total cost.

You need to calculate the expense that is not directly involved in the production but still necessary for the operation (such as the cost of fixing broken parts, the cost of daily maintenance, etc). All of these things will be included in activity-based costing.

2. Which costing method tends to overstate the cost of high-volume products?

Answer:

A. traditional volume based accounting

Explanation

Traditional volume based costing will calculate all overhead costs (such as salary paid per hour to employees) and include it to the overall cost of the production without any additional adjustment.

This will cause an overstate in the cost of high-volume products Because longer hours of work does not necessarily translate to proportionate increase in productivity.,

3. Disadvantages of activity-based costing include

Answer:

-It is not acceptable under GAAP for external reporting.

-It can be costly to implement.

Explanation:

GAAP does not accept activity-based costing becasue it overlooked Organization-sustaining costs that will exist regardless of how much goods the company produce. (For example Cost of factory security, Cost of electricity for heating and air conditioning and office administration rent).

Activity based costing can be costly because it need a more precise evaluation of their indirect cost. Which means that they need to hire more experts to specifically pay attention to indirect cost which often time untraceable by common employees.

5 0

3 years ago

Kevin owns a retail store, and during the current year, he purchased $610,000 worth of inventory. Kevin's beginning inventory wa

Dimas [21]

Answer:

COGS= $598,020

Explanation:

Giving the following information:

Kevin owns a retail store, and during the current year, he purchased $610,000 worth of inventory. Kevin's beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use.

We need to deduct the inventory used for personal use.

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 67,000 + 610,000 - 77,200 - 1,780

COGS= $598,020

3 0

3 years ago