Answer:
d. A credit to Prepaid Insurance for $680.
Explanation:
The computation of the prepaid insurance is shown below:
Given that
Four month prepaid insurance = $2,720
For one month, the prepaid insurance is
= $2,720 ÷ 4 months
= $680
Since we have to record the prepaid expenses for 1 month, we divided the total prepaid insurance by the 4 months due to that it decreases by $680 and that's why we credited this account
Answer: Sell government bonds and raise the discount rate
Explanation:
Fed uses open market operations for controlling the money supply in the economy. If fed wants to create a tight money market then it should sell the government securities to the public which will reduce the money supply in the economy. It is known as contractionary monetary policy.
Discount rate is defined as the interest rate on the discounted loan. If there is an increase in the discount rate then it will be more expensive for the banks to borrow from Fed and hence they borrow less. This will decrease the lending capacity of the banks which reduces the money supply in an economy.
Therefore, Sell government bonds and raise the discount rate are the best ways to contract the money supply.
Answer:
See below
Explanation:
A. Cost of goods manufactured
Beginning work in process
$18,000
Add: Beginning raw materials
$26,000
Raw material purchases
$73,000
Less: Ending raw material
($22,000)
Add: direct labor cost
$93,000
Add: manufacturing overhead cost applied
$43,100
Less: Ending work in process
($11,000)
Balance
$220,100
B. Schedule of cost of goods sold
Beginning finished goods
$49,000
Add: cost of goods manufactured
$220,100
Less: Ending finished goods
($57,000)
Unadjusted COGS
$212,100
Add: Under applied MOH
$1,100
Adjusted COGS
$213,200
Answer:
From maintenance to department B will be allocated 85,333 dollars
Explanation:
We distribute maintenance over personnel and operating and then,
we distributed the accumulated in personnel over the operating department:
<em><u>For the given question it would be:</u></em>
total maintenance-hours: 800 + 960 + 640 = 2,400
<u>allocation of maintenance:</u>
320,000 x 640/2400 = 85,333
Answer:
D. Inflation
Explanation:
Inflation-a general increase in prices and fall in the purchasing value of money