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3 years ago

Which of the following statements about the goods receipt step are NOT true?

Business

1 answer:

sesenic [268]3 years ago

6 0

Answer: A - It results in a decrease in inventory

Explanation: Goods receipt will result in increased inventory as goods are received into the store or warehouse were it will be sold.

Goods receipt occurs during a procurement process therefore creating a financial accounting document called invoice and delivery note which will be used to ascertain the actual cost of the goods purchased and actual quantity of goods received.

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Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or ba

tensa zangetsu [6.8K]

Answer:

These costs are called overhead cost.

Explanation:

Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called overhead cost. These costs can not be associated with specific product so they are allocated to product cost based on estimation.

These cost include accounting fees, advertising, depreciation expense insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities

These costs are futher divided in two categories that is variable overhead cost and fixed overhead cost.

3 0

3 years ago

When a company sells multiple products, an increase in total sales always results in an increase in total profits.

nevsk [136]

Hindsight is a wonderful thing in any business, or in life in general. We could make the best business decisions and maximise earnings if we had access to a crystal ball that could tell us exactly how many people would buy our goods.

<h3>What Is Cost-Volume-Profit (CVP) Analysis?</h3>

An approach to determining how changes in variable and fixed expenses impact a company's profit is through cost-volume-profit (CVP) analysis.

Companies can utilise CVP to determine how many units they must sell to attain a specific minimum profit margin or break even (pay all expenditures).

CVP analysis makes a number of presumptions, among them the constancy of the sales price, fixed costs, and variable costs per unit.

Learn more about Cost-Volume-Profit refer:

brainly.com/question/26711135

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5 0

2 years ago

Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of rec

makkiz [27]

Answer:

$25,650

Journal entries

Explanation:

The computation and the journal entries are as follows

The estimated balance of the allowance for Doubtful Accounts is shown below:

= Total account receivable × estimated percentage

= $570,000 × 4.5%

= $25,650

The journal entry is shown below:

a. Bad debt expense A/c Dr $13,650 ($25,650 - $12,000)

To Allowance for doubtful debts $13,650

(Being bad debt expense is recorded)

b. Bad debt expense A/c Dr $24,650 ($25,650 + $1,000)

To Allowance for doubtful debts $24,650

(Being bad debt expense is recorded)

7 0

3 years ago

A merchandiser returned inventory worth $1,400 that was purchased on account. Under the periodic inventory system, the joumal

cestrela7 [59]

Answer:

a debit to Accounts Payable for $1,400 and a $1,400 credit to Purchase Returns allowances

Explanation:

Periodic inventory system is one that updates information on inventory on a periodic basis. This is opposite of perpetual inventory system that requires update of inventory system at all times.

In the scenario the merchandiser bought the goods on account. That means he did not pay cash but rather bought on credit.

On purchasing the items accounts payable will be credited thereby increasing the account balance.

Since the items are being returned a debit will be applied to accounts payable resulting in a decrease in the account balance.

A credit will now be posted to purchase returns allowances to show that products have been returned by a buyer

4 0

2 years ago

Cobe Company has already manufactured 25,000 units of Product A at a cost of $15 per unit. The 25,000 units can be sold at this

Lelechka [254]

Answer:

Incremental income from further processing $534,900

The company should process further

Explanation:

A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.

Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .

Revenue after split-off point

(104×5400) + (53× 11,100) 1,149,900

Revenue at the slit of point

(25,000× $15) (375,000 )

Additional income from further processing 774,900

Further processing cost (240,000)

Incremental income from further processing 534,900

Incremental income from further processing $534,900

The company should process further

6 0

3 years ago