The most common reason as to why the contractor may be
indebted to the Government is because of defective pricing. Defective pricing
usually occurs when a contractor fails to submit or to even disclose pricing
data or the government cost in which is even complete or accurate in reaching
the agreed price. This is usually found at post-award audits in which the data
are being analyzed.
I’m not very sure but the answer should be number 3
Answer:
Explanation:
In this the golden rules of accounting applies, debit the receiver, and credit the giver, debit all expenses and credit all incomes and gains.
1. The journal entry is
Accounts Receivable A/c Dr
To Revenue
(Being work performed is recorded)
2. The journal entry is
Cash A/c Dr
To Accounts Receivable
(Being cash received from customer is recorded)
3.The journal entry is
Office supplies A/c Dr
To accounts payable
(Being office supplies purchased on credit )
4.The journal entry is
Gasoline A/c Dr
To Cash
(Being purchase of gasoline is recorded)
Answer:
The inventory turnover ratio is 13.3 times.
Explanation:
The inventory turnover ratio is a measure to see how many times the average inventory of the business has been sold or turned over during a period of time. The inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory.
The average inventory = (opening inventory + closing inventory) / 2
Average inventory = (30083 + 34338) / 2 = 32210.5
Inventory turnover ratio = 428600 / 32210.5 = 13.3
Answer:
If the company makes the component, it will save $2,500.
Explanation:
To determine which option is better, we need to calculate the total cost of each option and choose the cheapest one.<u> We will take into account the avoidable fixed overhead cost, thus the rest is inconsequential to the decision-making process.</u>
<u>Make in-house:</u>
Direct material= $22,000
Direct labor= $6,500
Variable overhead= $20,000
Avoidable fixed overhead= $4,000
Total cost= $52,500
<u>Buy:</u>
Total cost= $55,000
If the company makes the component, it will save $2,500.
