Expenses are recorded as costs of doing business whether cash was paid or not. True or False

Your company has total wages of $321,000. Your revenue is $976,000. You have just read an industry journal that suggests that wa

VMariaS [17]

The wages are quite a bit higher than industry standard. It's about 33% which is 8% higher.

7 0

3 years ago

Cash means more than just cash on hand and cash in the bank. highly liquid, short-term investments that are easily convertible i

RoseWind [281]

Cash equivalents, the investments securities that are for short-term investing, and they have high credit quality and are highly liquid. Cash equivalents, also known as "cash and equivalents," are one of the three main asset classes, along with stocks and bonds. Cash equivalents also serve as one of the most important health indicators of a company's financial system.

6 0

3 years ago

Asher buys a linen suit from Miriam and gives it to his father, Moises. Moises takes the suit to Vanessa, who runs a local dry c

andrezito [222]

This doesn’t even make any sense

7 0

3 years ago

Which of the following would be considered a capital expenditure?

Alborosie

Answer:

B. Paying city inspection fees for new equipment

Explanation:

Capital expenditure is an expense incurred by the business to maintain its fixed assets with an objective to increase its efficiency. Any additions and improvements in fixed assets is an capital expenditure.

City inspection is required to evaluate the working condition of the asset and any fees paid for it, is a capital expenditure.

Interest payment on construction bonds, lease rental payments of assets and mortgage interest on asset is a liability payable in intervals and all they are operating expense and not considered to be capital expenditure.

8 0

3 years ago

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricat

ivann1987 [24]

Answer:

Cost per equivalent unit Materials = $ 2.82

Cost per equivalent unit Conversion = $2.65

Explanation:

Richards Corporation

1) We first calculate the fifo equivalent units .

FIFO Equivalent units can be calculated by the following.

Particulars Units % of Completion Equivalent Units

Mat. Con. Costs Materials C. Costs

Transferred out, 366,000 100 100 366,000 366,000

Ending inventory, 39,000 30 15 11700 5850

Total Weighted Equivalent Units 377,700 371,850

Less

Beginning Inventory: 98,000, 80% 20% 78,400 18000

FIFO Equivalent Units 299,300 353,850

2) We calculate the total costs

Direct Materials Conversion

Costs in beginning Work in Process -$55,200 $97,700

Costs incurred in October - $844,050 $937,300. 

Total Cost $ 899250 1035,000

3) In FIFO The cost per unit is based only on the current costs and current period unit productions.

Materials = $844050/299300= $2.82

Conversion = 937,300 / 353,850 = 2.6488= $2.65

8 0

3 years ago