Answer:
Explanation:
The journal entries are given below:
1. Account receivable A/c Dr $55,330
To Fees earned $55,330
(Being the fees earned is recorded)
2. Supplies A/c Dr $2,380
To Account payable A/c $2,380
(Being the supplies is purchased on account)
3. Cash A/c Dr $52,010
To Account receivable A/c $52,010
(Being the cash is received from customers)
4. Account payable A/c Dr $1,440
To Cash A/c $1,440
(Being cash is paid to creditors on account)
Answer:
$80,704
Explanation:
Data provided in the question:
Budgeted Price = $20,176 per pool
Budgeted quantity = 12 pools
Actual quantity = 16 pools
Actual price = $20,992 per pool
Now,
Sales Volume Variance
= ( Actual Quantity - Budgeted Quantity) × Budgeted price
Thus,
Sales Volume Variance for April = ( 16 - 12 ) × $20,176
or
Sales Volume Variance for April = $80,704
Since the units can be produced within existing plant capacity, the special order will not increase fixed costs. Let’s identify the relevant data for the decision. First, the variable
manufacturing costs will increase $30000 (15000×2). Second, the expected revenue will increase $37500 (15000×2.5). Thus, will increase its net income by $7500 (37500-30000) by accepting this special order.
