Under a _____ costing income statement, only variable costs are included in the computation of total cost per unit.

Business

1 answer:

Crazy boy [7]3 years ago

5 0

Answer:

Variable costing income statement

Explanation:

The Variable costing income statement only includes variable costs in the cost per unit product. Variable costs examples are raw materials, direct labor and other variable overheads.

The fixed manufacturing costs together with the non-manufacturing costs are treated as period costs and expensed in the period in which they are incurred.

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Marin Corp. factors $441,000 of accounts receivable with Headland Finance Corporation on a without recourse basis on July 1, 202

Kaylis [27]

Answer:

Debit Cash for $406,602; Debit Finance charge for $7,938; Debit Loss on sale of receivables for 26,460; and Credit Accounts receivable for $441,000.

Explanation:

Before preparing the journal entry, the following calculations are made firs:

Finance charge = Percentage of finance charge * Accounts receivable = 1.80% * $441,000 = $7,938

Loss on sale of receivables = Percentage retained * Accounts receivable = 6% * $441,000 = $26,460

Cash = Accounts receivable - Finance charge - Loss on sale of receivables = $441,000 - $7,938 - $26,460 = $406,602

The journal entry will now look as follows:

Date Details Debit ($) Credit ($)

01 Jul '20 Cash 406,602

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Loss on sale of receivables 26,460

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(To record factoring of accounts receivable.)

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Answer:

iii. The law of diminishing marginal utility

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