Answer:
a. $300 and $60
b. 50 shirts and $750
Explanation:
The computation is shown below:
a. The total revenue would be
= Number of shirts sold × selling price per shirts
= 20 shirts × $15
= $300
The variable cost would be
= Number of shirts sold × materials used in one shirt
= 20 shirts × $8
= $160
b. The net profit is
= Selling price per shirts - materials used in one shirt
= $15 - $8
= $7
And, the cost of using the equipment is $350
So, the break-even sales is
= $350 ÷ $7
= 50 shirts
And, the revenue is
= 50 shirts × $15
= $750
Examples of current liabilities include:
1. accounts payable
2. taxes
3. Interest payable
4. Accrued expenses.
Current liabilities are those expenses due within 12 months or less. All other liabilities are reported as long-term liabilities. For a business, they must have enough current assets (cash, sales) to cover current liabilities.
Answer:
Preparation of bank reconciliation is shown Below:-
Explanation:
Miller co.
Bank Reconciliation
Aug-31
Cash Balance according to bank statement $3,480
Add: Deposits in transit not recorded by bank $729
Balance $4209
Less: Outstanding checks $796
Adjusted balance $3,413
Cash Balance according to company's records $3,535
Less: Bank service charge $113
Error in recording $9 $122
Adjusted balance $3,413
