Answer:
$5000
Explanation:
Since Elm City issued a purchase order for supplies with an estimated cost of $5,000, although when the supplies were received, the accompanying invoice indicated an actual price of $4,950, the amount that Elm should credit to encumbrances outstanding in its general fund after the supplies and invoice were received; is $5000
Notice that encumbrances are set aside funds for a purpose, therefore upon ordering, encumbrances balance would increase, and Elm would have passed the following entry
Dr. Encumbrances...$5000
Cr. Fund Balance.....................$5000
Therefore even if the supply came with a shortfall in amount, in order for Elm City to show that the purpose for making that encumbrance has been met, it has to be liquidated by crediting the Encumbrance account by the full amount of $5000
Answer:
The correct answer is option c.
Explanation:
The only kind of market structure where the price is set by market forces and not the firms is pure competition. The firms in other market structures such as oligopoly, monopoly and monopolistic competition are price setters.
The market for wheat is a pure competition as there is a large number of sellers who are producing identical products. The firms are price takers and the price is determined by market forces.
Answer:
Depreciation for the first year is $10,000
Explanation:
Unit production method is the depreciation method which is based on the output per year of the asset. The asset is depreciated by the ratio of the output for the year to the output expected over whole useful life.
Cost of printer = $60,000
Expected output = 12,000 prints
Prints in the first year = 2,000
Depreciation for the year = Total cost x output for the year / expected output over useful life
Depreciation for the first year = $60,000 x 2,000 / 12,000
Depreciation for the first year = $60,000 x 1/6
Depreciation for the first year = $10,000
Answer:
Jill cannot hold the manufacturer responsible for her injury.
Explanation:
The above question is incomplete as there are several answer options which are listed below;
• Jill can hold the manufacturer liable for her injury as long as Lexi was in the room when she got
• Jill can hold the manufacturer liable for her injury
• Jill cannot hold the manufacturer responsible for her injury
• Lexi can hold the manufacturer liable for Jill's injury.
The above answer - Jill cannot hold the manufacturer responsible for her injury, is true according to the rule of privity of contract. The rule states that a person who is not a party to a contract does not have right to sue or be sued and to enforce the obligations arising from the contract, unlike a person who is a party to the contract.
With regards to the above scenario, Lexi, who buys a food processor is the party to the contract here, hence can sue and be sued in case of any injury suffered by her, however, Jill whom food processor was loaned to, is the third party here, hence not covered by the rule of privity of contract.
Answer:
Unit product cost= $204
Explanation:
Giving the following information:
Number of units produced 10,700
Variable costs per unit:
Direct materials $108
Direct labor $51
Variable manufacturing overhead $7
Fixed manufacturing overhead $417,300
Under the absorption costing method, the unit product cost is calculated using the direct material, direct labor, and total unitary overhead.
First, we need to calculate the unitary fixed manufacturing overhead
unitary fixed manufacturing overhead = 417,300/10,700= $39 per unit
Unit product cost= 108 + 51 + 7 + 39= $204
