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sergey [27]
4 years ago
5

At December 31, 2020, Sandra’s Boutique had 1850 gift certificates outstanding, which had been sold to customers during 2020 for

$70 each. Sandra’s operates on a gross profit of 60% of its sales. What amount of revenue pertaining to the 1850 outstanding gift certificates should be deferred at December 31, 2020?
Business
1 answer:
zhannawk [14.2K]4 years ago
5 0

Answer: $129,500

Explanation:

According to the Accrual Basis in Accounting, revenue and expenses should only be recognised when goods have been delivered.

On the December 31, 2020 Sandra's Boutique had 1,850 gift certificates outstanding but these had been sold already to people during the year for $70.

This means that they have been paid for a service that they have not given (they provide the service when the GIFT certificate is renewed).

They cannot therefore recognize the revenue as Revenue yet and have to defer it.

The amount to be Deferred will therefore be,

= 1,850 * $70

= $129,500

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Southern Industries uses job order costing. The following information was drawn from the Company’s monthly accounting reports: J
Vlad [161]

Answer:

The balance in the Work in Process inventory at the month end is $60

Explanation:

Work in Progress : It is a sum of direct material, direct labor and overhead expense. It shows how much percentage of work is left in the company. The work part left in the company is called work in progress.

For computing the Job 3 work in progress, the calculation part is shown below.

= Direct material + Direct labor + overhead expense

= $30 + $10 + 200% × 10

= $30 + $10 + $20

=$60

Hence, the balance in the Work in Process inventory at the month end is $60

8 0
3 years ago
which term describes the redesigning of an organization so that it can more effectively and efficiently serve its customers?
oksian1 [2.3K]

Redesigning the organization so that it is more efficient and effective is called restructuring

Organizational design is a formal endeavor, a directed process for integrating people, information and technology in an organization.

Restructuring is an organizational activity to reform the company's operational strategy for goals or objectives in an effective and efficient manner. The restructuring step not only supports the improvement of financial conditions, but also operational progress which produces good results.

Corporate restructuring is very important because a company needs to evaluate its performance and make a series of improvements, so that it continues to grow and be competitive. There are 4 (four) forms of restructuring, namely: merger, consolidation, takeover and settlement..

Learn more about organizational design at:

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6 0
1 year ago
Direct materials for a company were $500,000; manufacturing overhead was $250,000; and direct labor was $770,000. Conversion cos
Keith_Richards [23]

Answer:

A) $1,020,000

Explanation:

Conversion cost = All the cost incurred to convert raw material into finished goods, this only includes direct labor cost and manufacturing cost.

Thus, here as for provided information,

Manufacturing overhead = $250,000

Direct Labor = $770,000

Thus, conversion cost = $250,000 + $770,000 = $1,020,000

Conversion cost is the cost of efforts made to convert raw material to finished goods, but it does not include raw material cost.

A) $1,020,000

8 0
4 years ago
Read 2 more answers
How often should i take my scuba cylinder to be visually inspected by my dive center?
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4 0
3 years ago
Discretionary fiscal policy will stabilize the economy most when Group of answer choices deficits are incurred during recessions
inessss [21]

Answer:

deficits are incurred during recessions and surpluses during inflations

Explanation:

Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.

Discretionary fiscal policies can either be expansionary or contractionary

Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes. These policies are carried out in a recession when the government wants to increase total spending

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3 years ago
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