All categories

3 years ago

Question 3

Business

1 answer:

Bas_tet [7]3 years ago

4 0

Answer: Decreasing return to scale

Explanation:

Decreasing return to scale is a situation where the level of output, scale and average costs are all rising.

Decreasing return to scale happens when there's a rise in inputs that are involved in production process such as labour and capital which brings about a increase in output as well even though it's lesser.

You might be interested in

The Fremont Company uses the weighted-average method in its process costing system. The company recorded 32,500 equivalent units

yuradex [85]

Answer:

23,000 idk really im guessing

Explanation:

3 0

3 years ago

Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been

LekaFEV [45]

Answer:

variable cost per unit 150 dollars

Explanation:

As we aren't provided with a volume. We calculate considering variable costying system which onyl count variable cost as cost of goods manufactured:

raw material $ 75 per unit

labor 5 hours x 14 per hour = $ 70 per unit

variable ovehread $ 5 per unit

Variable cost per unit $ 150 per unit

the fixed overhead cost

5,110 + 3,730 + 1,550 + 6,600 + 8,760 = 25,750

will be considered cost of the period under variable costing

8 0

3 years ago

Prepare the journal entry (if any) to record the sale on January 2, 2017. (Credit account titles are automatically indented when

Troyanec [42]

Answer:

JOURNAL ENTRY

a) 2 Mar Debit Accounts receivable $946000, Credit Revenue $946000

Debit Cost of Sale $538100, Credit Inventory $538100

b) 5 Mar Debit Sales return $ 113000, Credit Account receivables $113000

Debit inventory $63100, credit Cost of Sales $63100

c) 12 Mar Debit bank $816340 , Debit discount allowed $16660 , Credit Accounts receivable $833000

The balance due is $946000-$113000=$833000*98%=$816340 net of discount.

Revenue to be recognized = $833000 net of returns

cost of sales = $538100-$63100 = $475000

gross profit = $358000

Explanation:

COMPLETE QUESTION ( I will use the dates in the complete question)

Question:

Prepare the journal entries to record the following transactions on Sheridan Company's books using a perpetual Inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

(a) On March 2, Crane Company sold $946,00D of merchandise to Sheridan Company, terms 2/10, n/30. The cost of the merchandise sold was $538,100

(b) On March 5, Sheridan Company returned $113,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $63,100.

8 0

3 years ago

Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 5% charge on sales for using its c

ZanzabumX [31]

Answer:

Date Account titles and explanation Debit Credit

May 20 Cash ($6,200 - $310) $5,890

Credit card expenses ($6,200*5%) $310

Sales $6,200

(To record the deposit)

3 0

3 years ago

Black and Decker decides to discontinue producing toasters in lieu of more versatile toaster ovens. In the process of discontinu

Andru [333]

Answer:

The correct answer is Gain or loss on the sale of equipment as part of continuing operations.

Explanation:

If a gross profit on sales is generated in the process of selling an item of property, plant and equipment, but additional expenses are also incurred, the only thing that is recognized in the income statement is the net profit.

Among the accounts of the income statement, only one record is made with the net profit that occurred in the process of the sale of the asset. Although the final effect on the income statement is the same as it had under the old regulatory framework, it can be said that with that single record among the income statements, what is sought is that high gross income and expenses are not shown high, as this could distort the different financial analyzes that will be carried out at the end of the year.

6 0

3 years ago