Gladiator USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes firs
1 answer:
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Answer:
Please see the attached snapshots for the answers.
Explanation:
a.
Debit: Cash $30,000
Credit: Service Revenue $30,000
To record Service Revenue.
b.
Debit: Supplies $20,000
Credit: Accounts Payable $20,000
To record purchase of supplies on account.
c.
Debit: Salaries Expense $7,000
Credit: Cash $7,000
To record salaries Expense.
Answer:
e.$8,000 of fixed costs and $108,000 of variable costs.
Explanation:
Fixed costs don't change with a change in production volume, therefore, fixed costs remain $8,000.
The cost per unit to produce 15,000 units is:
Assuming a new production volume of 18,000 units, budgeted variable costs are:
The budgeted amounts are: e.$8,000 of fixed costs and $108,000 of variable costs.