Answer:
Lost contribution per unit = $56 per unit
Explanation:
The Division X is operating at less than full capacity, hence it has excess capacity of 600 units i.e (5000- 4,400)
This implies that it can only produce to meet the external and a portion of Division Y demand
Since Division X can only accommodate a portion of the internal demand, an opportunity would arise if it decides to meet all the request of Division Y.
Therefore, the minimum transfer price
minimum transfer price= Variable cost + a lost contribution from internal supply
The lost contribution represent the amount Division X would have made had sold the units to external buyers
Lost contribution per unit = $56 per unit
Answer:
a. True
Explanation:
At the time when the velvovia government made the efforts in its progress in order to control the increased inflation but at the same time the price is also still increasing but the increase rate would be falled down so here it is recommended that the velovia experienced the disinflation where the inflation is considerably slowing and the rate of inflation is also slow down
Therefore the given statement is true
Answer:
A) Debit cash, credit accounts receivable
Explanation:
As the statement said, Zoono electronics made a payment which means they are debiting cash amount of $3,500 to imperial distributor who is a supplier. So the best statement that best describes the recording of this financial transaction by imperial distributor is their account receivable has been credited and cash is debited. All the other options are wrong except this.
Debit Store Supplies Expense $280 and credit Store Supplies $280
Explanation:
The adjustment of accounts is a log report that typically is made at the end of a fiscal period to attribute income and costs to the time they actually existed. To order to adjust the entries for the accrued and deferred profits in accrual-based accounting the concept of revenue recognition is the basis. Sometimes they are called day balances because it is performed on the day of equilibrium.
Prepayment adjustment entries are necessary to take into account cash received before goods have been delivered or services have been completed. Once paying this currency, it is first reported in a Prepaid Cost Investment account; either the duration (e.g. rent, insure) or use and use (e.g. provision) of the plan must be assessed.
Answer:
$18,900
Explanation:
1. Insurance expense
$5,500
($ 22000 is for 12 months.
Period till 31 Dec from 1 Oct = 3 months
3 months Insurance expense = 22000 x 3/12 = 5500)
2.Interest Revenue
($600)
(6 month interest, from 1 Jul to 31 dec
= 20000 x 6% x 6/12
= 600 Interest Revenue)
3. Depreciation expense
$14,000
Total ($14,000+$5,500-$600)
=$18,900
Therefore if the adjusting entries were not recorded, would net income be higher or lower and by $18,900
