Answer:
The correct answer is the tax on food processors was unconstitutional.
Explanation:
On January 6, 1936, the Supreme Court decided in the United States v. Butler, that the act was unconstitutional for the collection of this tax on processors only so that it will be returned to the farmers. The regulation of agriculture was considered a state power. As such, the federal government could not force states to adopt the Agricultural Adjustment Act due to lack of jurisdiction. However, the Agrarian Law of 1938 remedied these technical problems and the agricultural program continued.
Answer:
Please see below
Explanation:
a. A 5% stock dividend is declared and distributed when the market per share was $39.
Common stock par value($10) 500,000
Retained earning = 50,000 × 5% × 39
= $97,500
Common stock dividend distributed
50,000 × 5% × $10
= $25,000
See attached further explanations.
Answer:
Customer and Product Margin under Activity-based Costing and Traditional Costing
True Statements:
1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.
2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.
Explanation:
Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs. In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders. Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.
Product Margin is the profit margin generated per product. It is the markup on the cost of the product. It shows the difference in amount between the selling price and the manufacturing cost. Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.
Answer:
D. Replacement cost.
Explanation:
As we know that the inventory should be recorded at the cost or market value whichever is lower
Given that
Original cost is less than the net realizable value subtract the profit margin
So we assume the following figures
Original cost $10
Net realizable value 9
Replacement cost 8
NRV less normal profit margin 7
As if we compare the original cost and replacement cost so the lower value is of replacement cost
hence, the same is to be considered
Therefore the correct option is D.
Answer:
$135,100
Explanation:
Given :
Cost of purchasing: $140,500
Operating expenses :$80,600
beginning inventory:$12,900
Ending inventory:$18,300
sales revenue :$300,700
Gross profit of the year can be determined by
Cost of purchasing + beginning inventory - Ending inventory
=140,500 + 12,900 -18,300
=$153,400-$18,300
=$135,100
