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Anit [1.1K]
3 years ago
9

Sales $2,150,000 Manufacturing costs: Direct materials $960,000 Direct labor 420,000 Variable manufacturing cost 156,000 Fixed m

anufacturing cost 288,000 1,824,000 Selling and administrative expenses: Variable $204,000 Fixed 96,000 300,000 Required: 1. Prepare an income statement based on the absorption costing concept.
Business
1 answer:
son4ous [18]3 years ago
5 0

Answer:

Net income                                                      <u> 26,000</u>

Explanation:

Absorption costing classifies costs as production cost and non-production costs ( selling and distibution , administration e.t.c)

Income statement using Absorption costing

                                                                          $

Sales Revenue                                        2,150,000

Less cost of goods sold

Direct material                         960,000

Direct labour cost                   420,000

Variable manufacturing           156,000

Fixed manufacturing                <u>288,000</u>

production cost                                          (<u> 1,824,000 )</u>

Gross profit                                                  326,000

Selling and distribution

Variable                                   204,000                

Fixed                                          <u>96,000</u>    

                                                                     <u>(300,000) </u>

Net income                                                      <u> 26,000</u>

                 

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Importance of the study of organisational buyer behaviour to the personal selling function​
ladessa [460]

Answer:

The answer is below

Explanation:

The importance of the study of organizational buyer behavior to the personal selling function​ is that the personal seller can easily realize the expectation of the organizations.

It also assists in determining what makes organizations buy a certain product.

It gives the seller the proper ideas on the type of products preferred by organization buyers such that they can quickly make them available.

It also ensures the seller understands how the organization buyer operates in terms of payments, quality, quantity, and the purpose in which they are buying.

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3 years ago
Recommend ways to deal with the following personalities in the workplace"
Roman55 [17]
1) Know the complaint. Ask what they think is the best solution to resolve the problem. Weigh the pros and cons of their suggestions. If more pros than cons, implement their suggestions. If more cons than pros, ask them to suggest other ways of solving their complaints.
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5 0
3 years ago
Suppose the tax rate on the first​ $10,000 of income is 0​ percent; 10 percent on the next​ $20,000; 20 percent on the next​ $20
dsp73

Answer:

option (A) $32,000 for A and $7500 for B

Explanation:

Given:

Tax rate as:

on the first​ $10,000 of income = 0%

10% on the next​ $20,000

20% on the next​ $20,000

30% on the next​ $20,000

40% on income over​ $70,000

Income of family A = $120,000

Thus,

For A

Up to $10,000 ; tax = 0

Tax amount from $10,000 to $30,000 at 10 % tax rate

= 10% × $20,000

= $2,000

From $30,000 to $50,000 at 20 % tax rate

= $20,000 × 20%

= $4,000

From $50,000 to $70,000 at 30 % tax rate

= $20,000 × 30%

= $6,000

Tax amount above $70,000 to $120,000 at 40 % tax rate

= (120,000 - $70,000) × 40%

= $50,000 × 40%

= $20,000

Therefore,

Total tax bill for family A

= $2,000 + $4,000 + $6,000 + $20,000

= $32,000

Similarly,

For family B

Income of family B = $55,000

Thus,

Up to $10,000 = $0

From $10,000 to $30,000 at 10 % tax rate

= $20,000 × 10%

= $2,000

From $30,000 to $50,000 at 20 % tax rate

= $20,000 × 20%

= $4,000

Tax amount from $50,000 to $70,000 at 30 % tax rate

= ($55,000 - $50,000) × 30%

= $5,000 × 30%

= $1,500

Therefore,

Total tax bill for family B = $2,000 + $4,000 + $1,500 = $7,500

Hence,

The correct answer is option (A) $32,000 for A and $7500 for B

5 0
3 years ago
During 2021, its first year of operations, Pave Construction provides services on account of $152,000. By the end of 2021, cash
Softa [21]

Answer:

  • 1. Record the adjusting entry for uncollectible accounts on December 31, 2021.

Dr Bad Debt Expense $ 13.800  

Cr Allowance for Uncollectible Accounts  $ 13.800

  • 2-a. Record the write-off of accounts receivable in 2022.

Dr Allowance for Uncollectible Accounts $ 12.420  

Cr Accounts Receivable   $ 12.420

  • 2-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022

Final Balance 2022  

Cr Allowance for Uncollectible Accounts  $ 1.380

  • 3-a. Assume the same facts as above but assume actual write-offs in 2022 were $18,630. Record the write-off of accounts receivable in 2022.

Dr Allowance for Uncollectible Accounts $ 18.630  

Cr Accounts Receivable   $ 18.630

  • 3-b. Assume the same facts as above but assume actual write-offs in 2022 were $18,630. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022

Final Balance 2022  

Cr Allowance for Uncollectible Accounts  $ 7.176

Explanation:

Initial Balance  

Dr Accounts Receivable   $ 152.000

Cash collections on these accounts total $106,000  

Dr CASH $ 106.000  

Cr Accounts Receivable   $ 106.000

New Balance

Dr Accounts Receivable   $ 46.000

Pave estimates that 30% of the uncollected accounts will be uncollectible.  

Dr Bad Debt Expense $ 13.800  

Cr Allowance for Uncollectible Accounts  $ 13.800

 

FINAL BALANCE 2021  

Dr Accounts Receivable   $ 46.000

Cr Allowance for Uncollectible Accounts  $ 13.800

In 2022, the company writes off uncollectible accounts of $12,420  

Dr Allowance for Uncollectible Accounts $ 12.420  

Cr Accounts Receivable   $ 12.420

Final Balance 2022  

Dr Accounts Receivable  $ 33.580  

Cr Allowance for Uncollectible Accounts  $ 1.380

2-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022    

Dr Bad Debt Expense $ 10.074  

Cr Allowance for Uncollectible Accounts  $ 10.074

a. Assume the same facts as above but assume actual write-offs in 2022 were $18,630.    

Record the write-off of accounts receivable in 2022.  

Dr Allowance for Uncollectible Accounts $ 18.630  

Cr Accounts Receivable   $ 18.630

3-b. Assume the same facts as above but assume actual write-offs in 2022 were $18,630.  

Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022  

Final Balance 2022  

Dr Accounts Receivable  $ 14.950  

Cr Allowance for Uncollectible Accounts  $ 7.176

6 0
3 years ago
Bruno's Lunch Counter is expanding and expects operating cash flows of $26,900 a year for 6 years as a result. This expansion re
8090 [49]

Answer:

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Explanation:

To get the net present value,  we make a cash-flow in excel. See document attached.

At moment 0 the investment is =$(92.700), also we consider the working capital =(6.600)

Moment 1 to 6 = $26.900

We calculate the Net cash flow (that is the difference between benefits and cost).

To get net present value, we use VNA formula.  ( =VNA(required rate of return; Net cash flow from moment 0 to moment 6) +Net cash flow at moment 0)

Net present value is 8234

4 0
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