Answer:
B) $8.80
Explanation:
Coronado's current variable costs = $408,000 / 68,000 units = $6 per unit
Since this special order wouldn't increase fixed costs, they should not be considered in this calculation.
What has to be considered are the additional $2,800 spent for shipping the goods = $2,800 / 3,500 units = $0.80 per unit
Coronado's total costs for this special order = $6.80 per unit
If it wants to earn a $7,000 profit for this order, that means that they will need to earn a profit of $2 per unit (= $7,000 / 3,500 units).
The unit price for this special order should be = $6.80 + $2 = $8.80
Answer:
d. Debit advertising expense $350, credit accounts payable $350
Explanation:
The advertising expense should be recognized when the economic event occurs, in this case recibing the bill, independently of its payment. This is done with a debit because expenses increase by debits. The credit account is a liability: account payable, which represents an increased on liabilities.
Explanation:
The journal entry is as follows
Notes receivable A/c Dr $11,100
To Sales A/c $11,100
(Being the sales is recorded)
Since the merchandise transaction is done through note receivable so we debited the note receivable account and the transaction is of sale type so the sales account is credited. Both the transactions are recorded at $11,100
