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3 years ago

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.

Business

1 answer:

qwelly [4]3 years ago

3 0

Answer:

Cost of goods manufactured schedule for Case1

Opening Work In Process $1,000

Add Total Manufacturing Costs $16,000

Less Ending Work In Process ($3,000)

Cost of goods manufactured $14,000

Income statement for Case 1

Sales $24,500

Less Sales discounts ($2,500)

Net Sales Revenue $22,000

Less Cost of Goods Sold

Beginning Finished Goods Inventory $3,300

Add Cost of goods manufactured $14,000

Less Ending Finished Goods Inventory ($3,400) ($13,900)

Gross Profit $8,100

Less Operating expenses ($2,500)

Net Income $2,500

Current assets section :

Inventory :

Raw Materials $600

Work In Process $3,000

Finished Goods $3,400

Receivables (net) $15,000

Prepaid Expenses $400

Cash $4,000

Total Current Assets $26,400

Explanation:

Part b

Cost of Goods Manufactured = Opening Work In Process + Total Manufacturing Costs - Ending Work In Process

Part c

Income statement shows the Profit earned during the reporting period

Profit = Gross Profit - Operating expenses

Part d

The current assets section will include assets of a short term nature (not exceeding a period of 12 months). For a manufacturing company, it is important to show each inventory balance in the inventory categories of Raw Materials, Work In Process and Finished Goods among other items.

Note : Current Assets are shown in their order of liquidity in the Balance Sheet as above.

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Inferring Transactions from Financial Statements

denpristay [2]

Gap's cost of goods sold is $10,258 million and Cash paid to supplier is $10,447 million.

Let understand that Cost of good sold refers to amount of expenses incurred to produce the goods produced by a firm.

The formulae for deriving the Cost of Goods Sold is {Beginning Inventories + Purchases – Ending Inventories}.

Information given are Purchased inventories $10,392, Ending inventories $2,131 and Beginning inventories $1,997

Cost of goods sold = $1,997 + $10,392 - $2,131

Cost of goods sold = $10,258

In conclusion, the amount of Gap's cost of goods sold is $10,258

Let understand that Cash paid to accounts payable refers to net amount paid to supplier of goods.

The formulae for deriving the Cash paid to accounts payable is Beginning balance for 2015 + Purchases - Ending balance for 2015

Cash paid to accounts payable = $1,181 + $10,392 - $1,126

Cash paid to accounts payable = $10,447

In conclusion, the amount of Gap's Cash paid to supplier is $10,447

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6 0

2 years ago

Scenario: Elly owns a small coffee shop. She has only one employee. One weekend, she decides to take a break from work. She is w

malfutka [58]

Answer: Option A

Explanation: In simple words, backward induction refers to the process under which an individual starts analyzing a performance from the end results and go backward to the steps to determine where actually the actions went wrong.

This technique is generally used for analyzing complex subjects which requires high technology or knowledge. It helps the individuals to determine what actions should be rectified in future so that same problems would not occur again.

In the given case, Elly is willing to analyze the whole subject by starting right from the results. Hence we can conclude that she is using backward induction.

4 0

3 years ago

Unit contribution margin is A. The contribution margin in dollars for all products. B. The contribution margin as a percentage f

photoshop1234 [79]

Answer:

The correct answer is:

The contribution margin in dollars for a single product. (D.)

Explanation:

The unit contribution margin is the amount in dollars by which the price of selling a product exceeds the total variable cost incurred in the manufacture of that product. Mathematically it is the selling price of a product minus the total variable cost incurred on the single product. It is the proportion of sales revenue that is not consumed by variable costs, hence is used for the coverage of fixed costs.

The importance of unit contribution margin is that it is used to calculate the break-even price of the product, when fixed costs are made up for. It measures how growth in sales translates to growth in profits.

6 0

4 years ago

If the government’s budget deficit increases while the economy is producing substantially less then potential GDP and expansiona

Serhud [2]

Answer:

A) higher interest rates ; largely offset by the lower interest rates

Explanation:

If the government carries on an expansionary monetary policy, it will lower interest rates and increase the money supply in an attempt to increase aggregate demand. If at the same time it increases the interest rate it will pay for borrowing money (e.g. increase treasury bills' interest rates), that would make no sense since one policy would offset the other.

A government cannot increase the money supply and then increase the interest rates on treasury bills since that would lower the money supply again.

7 0

4 years ago

Suppose that, for every 1-percentage-point decline of the discount rate, commercial banks collectively borrow an additional $2 b

almond37 [142]

Explanation:

Decline by $0.5 billion and the money supply will decline by $2.5 billion.

4 0

3 years ago