Answer:
The correct answer is B and D
Explanation:
Cost of goods available for sale is defined as the price paid for the inventory which is ready for the customers to purchase. In short, it is the purchase price or the amount of all the merchandises that is ready for sale with the retailer in the market.
The formula to computing the cost of goods available is as:
Cost of goods available for sale = Net (Total) Purchases + Beginning Inventory
OR
Cost of goods sold for sale = Beginning (Starting) inventory + Cost of goods purchased
This computation measures or evaluates the inventory amount or price that the retailer has at any point during the period.
Answer:
The best advice for this profit-maximizing firm is:
Use more capital than labor.
Explanation:
a) Data and Calculations:
Price of labor = $7
Price of capital = $10
Marginal product of labor = 20
Marginal product of capital = 30
Productivity of labor = Output/Input
= 20/7
= 2.86
Productivity of capital = Output/Input
= 30/10
= 3
b) Capital is more productive than labor. The productivity of capital is 3 when compared to the productivity of labor, that is 2.86.
Answer:
b. favorable tax concessions and economic incentives by home-country governments.
Explanation:
Venturing in international trade offers a business the opportunity to expand its market. The company will be able to distribute and sell its products to new regions and territories. A company will be able to grow its output, which results in economies of scale.
Growth in output requires the company to do large scale production. Production cost unit per unit decreases as a business output increases. After breakeven, every other unit produced contributes to an organization's profitability. International markets create chances of getting better locations for setting up new branches or finding cheap materials.
A Tax incentive is not a reason for engaging in foreign markets. Even if incentives are there, they last for a few years. Home countries will hardly give concessions to businesses engaging in international trade.
Answer:
a. Dr Sales $619,200
Cr Customer Refunds Payable $619,200
b. Dr Estimated Returns Inventory $400,000
Cr Cost of Merchandise Sold $400,000
Explanation:
a. Preparation of the journal entry to record Estimated customer refunds and allowances
Dr Sales $619,200
($51,600,000 × 1.2%)
Cr Customer Refunds Payable $619,200
(To record Estimated customer refunds and allowances )
b. Preparation of the journal entry to Estimated customer returns
Dr Estimated Returns Inventory $400,000
Cr Cost of Merchandise Sold $400,000
(To record Estimated customer returns)
