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VashaNatasha [74]
3 years ago
15

Edgar Co. acquired 60% of Stendall Co. on January 1, 2013. During 2013, Edgar made several sales of inventory to Stendall. The c

ost and selling price of the goods were $140,000 and $200,000, respectively. Stendall still owned one-fourth of the goods at the end of 2013. Consolidated cost of goods sold for 2013 was $2,140,000 because of a consolidating adjustment for intra-entity sales less the entire profit remaining in Stendall's ending inventory. How would non-controlling interest in net income have differed if the transfers had been for the same amount and cost, but from Stendall to Edgar
Business
1 answer:
rjkz [21]3 years ago
8 0

Answer:

Non-controlling interest in net income decreased would have by $6,000

Explanation:

The computation of net income is shown below:-

Profit on Intra-Entity Sales = Revenue - Cost of goods sold

= $200,000 - $140,000

= $60,000

Profit on Intra-Entity Sales × 25% still in Ending Inventory

= $60,000  × 25%

= $15,000

Adjustment to Net Income × 40% for Non-controlling Interest

= $200,000 × 25% × 30% × 40%

= $6,000  

Net profits will go decline by $6,000

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The following information is available for Lock-Tite Company, which produces special-order security products and uses a job orde
lbvjy [14]

Answer:

Exercise 15-8

1. Raw materials purchases for cash.

Raw Materials $210,000 (debit)

Cash $210,000 (credit)

2. Direct materials usage.

Work In Process : Indirect Materials $186,000 (debit)

Raw Materials $186,000 (credit)

3. Indirect materials usage.

Work In Process : Direct Materials $15,000 (debit)

Raw Materials $15,000 (credit)

Exercise 15-9

1. Direct labor usage.

Work In Process : Direct Labor $265,000 (debit)

Salaries and Wages Payable $265,000 (credit)

2. Indirect labor usage.

Work In Process : Indirect Labor $80,000 (debit)

Salaries and Wages Payable $80,000 (credit)

3. Total payroll paid in cash.

Salaries and Wages Payable :  $345,000 (debit)

Cash  $345,000 (credit)

Explanation:

Raw Materials - T Account (To determine the Materials Transferred to Production)

Debit

Opening Balance                                                 $ 43,000

Add Purchases                                                    $210,000

Totals                                                                   $253,000

Credit

Closing Balance                                                   $ 52,000

Transferred to Production (Balancing figure)    $201,000

Totals                                                                   $253,000

Thus, Direct Materials = $201,000 - 15,000 = $186,000

3 0
3 years ago
There are four stages in economic recovery in which order do u think theyll occur
Airida [17]
Rising demand, increased production, increased hiring, and then rising demand again
7 0
2 years ago
What is a product that is not an object or something that is owned called?
JulijaS [17]

Answer:A product that is not an object or something that is owned is called a non-economic good.

Explanation:

A product that is not an object or something that is owned is called a non-economic good.

5 0
3 years ago
2. Why are accounts receivable considered assets even if the money has not yet been paid to the business?
Strike441 [17]

The payee has a legal obligation to submit the funds.

Explanation:

Once a transaction is agreed upon it becomes a legal obligation of the payee to pay the business owner.

<u>Accounts receivable are thus counted in the balance sheets as liquid funds or current funds as they are converted into cash in less than an year is most cases. </u>

In such a case that doesn't happen, they are counted as long term assets of a company. Any potential income guaranteed by legality is counted in the balance sheet as assets.

5 0
3 years ago
A managed portfolio has a standard deviation equal to 26% and a beta of .9 when the market portfolio's standard deviation is 22%
Neporo4naja [7]

Answer:

118%

Explanation:

Calculation for the M2 measure invested in the managed portfolio

Using this formula

M2 measure invested in the managed portfolio=Managed portfolio standard deviation standard deviation/Market portfolio's standard deviation

Let plug in the formula

M2 measure invested in the managed portfolio=26%/22%

M2 measure invested in the managed portfolio=118%

Therefore the adjusted portfolio P* needed to calculate the M2 measure will have 118% invested in the managed portfolio and the rest in T-bills

3 0
2 years ago
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