Answer:
16,000
Explanation:
The amount of inventory to be produced is dependent on the projected sales, the expected opening and ending balances.
If the company desires to have an ending inventory of 80% of the next month's sales. It means that the ending inventory for August
= 80% × 15,000
= 12,000 units
Let the units to be produced in August be G, then;
8000 + G - 12000 = 12000
G = 12000 + 12000 - 8000
= 16000 units
The company should produce 16,000 units in August.
Answer:
28.6 days
Explanation:
Avg Receivables= Beg Receivables + Ending Receivables /2
=65,800+73,000/2
=$138,800/2
=$69,400
Receivable turn over= Net Sales/ Avg Receivables
=884,000/69,400
=12.74
days to collect during year= 365/ Receivable turn over =365/12.7
=28.6 days
Answer:
Correct answer is D, Debit Insurance Expense, $460; credit Prepaid Insurance, $460
Explanation:
The company uses asset method of recording the purchase of insurance. Hence, at end of year end the company must recognize the expire portion of the policy and charge it against insurance expense.
$2,300 / 5 years = $460 (annual insurance expense)
Entry:
Debit Insurance expense $460
Credit Prepaid insurance $460
The balance of the prepaid insurance at the end of first year is $1,840 (2,300 - 460).
Producer surplus is the difference between the amount a producer of a good receives and the minimum amount the producer is willing to accept for the good.
Cost to make 1 cake= $3
FIND SURPLUS PER CAKE
Surplus divided by 3 cakes
$19.50 ÷ 3= $6.50 surplus per cake
SALE PRICE OF CAKES
$3 cost + $6.50 surplus= $9.50
ANSWER: He must be selling his cakes for $9.50.
Hope this helps! :)
