Answer: Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be: $123000.
Explanation: First we must calculate the accumulated earnings to date with the equity equation: Assets = Liabilities + Equity
We know that equity is made up of capital + retained earnings.
If the asset is 195,000, the Liability 15,000 and the capital 60000
195000 = 15000 + 60000
195000 = 75000
195000 - 75000 = Retained earnings
$ 120000 = Retained earnings.
The result of the year is Income - expenses
226000 - 175000 = $ 51000.
Then the company's total earnings are retained earnings + Profit for the year = 120000 + 51000 = 171000.
We subtract the distribution of dividends and obtain the balance of the retained earnings account: 171000 - 48000 = $123000.
Complete Question:
Collegiate Rings produces class rings. Its best-selling model has a direct materials standard of 8 grams of a special alloy per ring. This special alloy has a standard cost of $65.40 per gram. In the past month, the company purchased 8,700 grams of this alloy at a total cost of $567,240. A total of 8,300 grams were used last month to produce 1,000 rings. Read the requirements. Requirement 1. What is the actual cost per gram of the special alloy that Collegiate Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that Collegiate Rings purchased last month is $
Answer:
Collegiate Rings
The actual cost per gram of the special alloy that Collegiate Rings purchased last month is $65.20
Explanation:
Calculations:
Actual Cost per gram of special alloy = Total Actual Cost/Total Actual Quantity
= 567,240/8,700 grams
= $65.2
This value represents the cost of the special alloy per gram. It is obtained as calculated above. Price or cost per unit is always equal to the actual cost divided by the total quantity. The actual cost will be equal to the price charged by the supplier less any discounts or special allowances.
Answer:
The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses. Doing so requires the use of separate accounting records for the organization that completely exclude the assets and liabilities of any other entity or the owner.