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3 years ago

In a CVP income statement, cost of goods sold is generally:

Business

1 answer:

Nadya [2.5K]3 years ago

3 0

Answer:

d) partly a variable cost and partly a fixed cost.

Explanation:

CVP income statement is also known as cost volume profit income statement, it is generally a product of CVP analysis and it include five elements:

Price of products.
Volume of activity.
Variable cost per unit.
Total fixed cost.
Mix of product sold.

CVP analysis are conducted to know how changes in cost and volume would impact company´s operating income and net income. It require all the cost of company should be segregated into variable and fixed cost. It also calculate contribution margin, which help to identify the profit of company before deducting fixed cost.

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Exercise 13-02 The following are selected 2020 transactions of Sandhill Corporation.

Lorico [155]

Explanation:

a. The journal entries are as follows:

1. Purchase A/c Dr $52,000

To Account payable A/c $52,000

(Being the purchase of inventory is recorded)

2. Account payable A/c $52,000

To Notes payable A/c

(Being the payment is done via note payable)

3. Cash A/c Dr $52,000

Discount on Note payable A/c Dr $4,400

To Note payable A/c $56,400

(Being the borrowed amount is recorded)

Interest expense A/c Dr $1,040

To Interest payable A/c $1,040

(Being the interest expense is recorded)

The computation is shown below:

= $52,000 × 8% × 3 months ÷ 12 months

= $1,040

Interest expense A/c Dr $1,040 ($4,160 × 3 months ÷ 12 months)

To Discount on notes payable A/c $1,040

(Being the interest expense is recorded)

c. Now the total net liability is

i. For the interest-bearing note

= Note payable + interest payable

= $52,000 + $1,040

= $53,040

ii. For zero-interest-bearing note

= $56,400 - $3,120 ($4,160 - 1,040)

= $53,280

5 0

3 years ago

Variable costs are costs

saul85 [17]

Answer:

Correct option is D

Explanation:

Variable cost remains constant for each single unit.

That means variable cost is defined per unit, therefore with this we know statement b is correct.

Also with change in production in number of units, the total cost varies and proportionately changes with change in level of output.

Therefore statement A is also correct.Thus on the conclusive part, Staement D is correct.

8 0

3 years ago

Suppose that consumption is $500 and that the marginal propensity to consume is 0.6. If disposable income increases by $1,000, c

Lynna [10]

Answer:

A. $600

Explanation:

The formula and the computation of the Marginal propensity to consume are shown below:

Marginal propensity to consume = Change in consumer spending ÷ Change in disposal income

0.6 = Change in consumer spending ÷ $1,000

So, the change in consumer spending is

= $1,000 × 0.6

= $600

Hence, the consumption that is given in the question is not considered. Therefore, ignored it

8 0

3 years ago

Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers issued $65,000,000 of 10-year, 12% bonds a

Stolb23 [73]

Answer:

Rodgers Corporation

Journal Entries:

1. July 1, Year 1:

Debit Cash $73,100,469

Credit Bonds Payable $65,000,000

Credit Bonds Premium $8,100,469

To record the issuance of bonds at a premium.

2. a) December 31, Year 1:

Debit Interest Expense $3,494,976.55

Debit Amortization $405,023.45

Credit Cash $3,900,000.00

To record the first semi-annual interest payment, including amortization.

b) June 30, Year 2:

Debit Interest Expense $3,494,976.55

Credit Amortization $405,023.45

Credit Cash $3,900,000.00

To record the second semi-annual interest payment, including amortization.

3. The total interest expense for Year 1 is $3,494,976.55

4. Yes. The bonds are issued at a premium. So the bond proceeds will always be greater than the face amount, and the contract rate (coupon rate) will always be greater than the market (effective) rate.

5. The price of $73,100,469 received for the bonds by using the present value tables is $1,124.62 ($73,100,469/65,000) per $1,000.

Explanation:

a) Data and Calculations:

Face value of bonds issued = $65,000,000

Price received from the issue $73,100,469

Premium received = $8,100,469

Period of maturity = 10 years

Coupon interest rate = 12%

Market (effective) interest rate = 10%

Payment of interest = semiannually on December 31 and June 30

Analysis of Journal Entries:

1. July 1, Year 1:

Cash $73,100,469 Bonds Payable $65,000,000 Bonds Premium $8,100,469

2. a) December 31, Year 1:

Interest Expense $3,494,976.55 Amortization $405,023.45 Cash $3,900,000.00

b) June 30, Year 2:

Interest Expense $3,494,976.55 Amortization $405,023.45 Cash $3,900,000.00

N (# of periods) 20

I/Y (Interest per year) 10

PMT (Periodic Payment) 3900000

FV (Future Value) 65000000

Results

PV = $73,100,439

Sum of all periodic payments = $78,000,000.00

Total Interest $69,899,569

8 0

3 years ago

"if our company achieves a high level of relational coordination, what can we expect in terms of employee behavior?" check all t

scoray [572]

If a company has a high level of relation coordination then the expected employee behavior is good as well. The employees respond to the company is highly satisfactory

6 0

3 years ago