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dexar [7]
3 years ago
8

At the beginning of Year 2, the Redd Company had the following balances in its accounts:

Business
1 answer:
bixtya [17]3 years ago
3 0

Answer:

Redd Company

Journal Entries:

1. Debit Inventory $13,100

Credit Accounts payable (Ross Company) $13,100

To record the purchase of inventory on account, terms 2/10, n/30.

2. Debit Freight-in Expense $990

Credit Cash $990

To record the payment for freight.

3. Debit Accounts payable (Ross Company) $900

Credit Inventory $900

To record the return of goods to supplier.

4. Debit Accounts payable (Ross Company) $12,200

Credit Cash $11,956

Credit Cash Discounts $244

To record the payment on account.

5. Debit Accounts receivable $21,500

Credit Sales Revenue $21,500

To record the sale of goods on account, terms 2/10, n/45

Debit Cost of goods sold $12,500

Credit Inventory $12,500

To record the cost of goods sold.

6. Debit Sales Returns $3,000

Credit Cash $3,000

To record the payment of cash for returned goods.

Debit Inventory $2,150

Credit Cost of goods sold $2,150

To record the cost of goods returned.

7. Debit Freight-out Expense $880

Credit Cash $880

To record the payment of freight.

8. Debit Cash $18,130

Debit Cash Discounts $370

Credit Accounts Receivable $18,500

To record the receipt of cash on account.

9. Debit Cash $7,300

Credit Land $7,300

To record the sale of land for cash.

10. Debit Interest Receivable $650

Credit Interest Revenue $650

To accrue interest income.

11. Debit Cost of goods sold $5,750

Credit Inventory $5,750

To record the cost of inventory write down.

Explanation:

a) Data and Analysis:

1. Inventory $13,100 Accounts payable (Ross Company) $13,100, terms 2/10, n/30.

2. Freight-in Expense $990 Cash $990

3. Accounts payable (Ross Company) $900 Inventory $900

4. Accounts payable (Ross Company) $12,200 Cash $11,956 Cash Discounts $244

5. Accounts receivable $21,500 Sales Revenue $21,500, terms 2/10, n/45

  Cost of goods sold $12,500 Inventory $12,500

6. Sales Returns $3,000 Cash $3,000

  Inventory $2,150 Cost of goods sold $2,150

7. Freight-out Expense $880 Cash $880

8. Cash $18,130 Cash Discounts $370 Accounts Receivable $18,500

9. Cash $7,300 Land $7,300

10. Interest Receivable $650 Interest Revenue $650

11. Cost of goods sold $5,750 Inventory $5,750

Inventory write down:

Beginning     $9,000

Purchase        13,100

Return              (900)

Sold             (12,500)

Return            2,150

Net             $10,850

Ending            5,100

Write down $5,750

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timurjin [86]

Reputation.

If a company has a bad reputation of allowing the sale of counterfeit goods, buyers will not trust the site and will not buy from it.

3 0
3 years ago
Read 2 more answers
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant ra
Paul [167]

Answer:

1. $4.5

2. 45%

3. 55%

4. $4.50

5. $1,800

6. $3,150

7. $1,750

8. 500 units

9.$5,000

10. 2,300 units

11. $5,000

12. 2

13. 1.5%

Explanation:

1. Contribution margin per unit = Unit sales price - Variable cost per unit

• $10 - $5.5 = $4.5

2. Contribution margin ratio = (sales - variable expense) / Sales

• ($10,000 - $5,500) / $10,000

• $4,500/$10,000

•45%

3.Variable expense ratio = variable cost per unit / Sales per unit

•$5.5/$10 = 55%

4. Net operating income @1,000 - Net operating income @1,001

•@1,000 units

Sales (1,000 x 10) $10,000

Variable expense (1,000 x 5.5) $5,500

Contribution margin $4,500

Less: Fixed Cost $2,250

Net operating income $2,250

•@1,001 units

Sales (1,001 x 10) $10,010

Variable expense (1,001 x 5.5) $5,505.50

Contribution margin $4,504.50

Less: Fixed cost $2,250

Net operating income 2,254.50

Therefore, $2,254.50 - $2,250 = $4.50

5. Sales (900 x 10 ) $9,000

Variable expense (900 x 5.5) $4,950

Contribution margin $ 4,050

Less: Fixed cost $2,250

Total net operating income $1,800

6. Sales (900 x 11.50) $10,350

Variable cost (900 x 5.50) $4,950

Contribution margin $5,400

Less: Fixed cost $2,250

Net operating income $3,150

7. Sales (1,250 x 10) $12,500

Variable cost (1,250 x 6) $7,500

Contribution margin $5,000

Less: Fixed cost (2,250 + 1,000) $3,250

Net operating income $1,750

8. Break-even point in unit sales

BEP =Total fixed cost / (sale per unit - variable cost)

BEP = $2,250 / (10-5.5)

BEP = $2,250/$4.5

BEP = 500 units

9.Break-even point in dollar sales

BES = Total fixed expense/contribution margin ratio

BES = $2,250/([10,000-5,500]/10,000)

BES = $2,250/0.45

BES = $5,000

10. Let’s begin with the desired net operating income.

•$8,100 + Fixed cost = Contribution margin / (Sales per unit - Variable cost)

•$8,109 + $2,250 = $10,350/(10-5.50)

•$10,350/4.50

•2,300 units

11.Margin of safety = Projected sales - Break-even sales

MOS = $10,000(1,000 x 10) - $5,000 (as computed above #9)

MOS = $5,000

12. Degree of Operating leverage

DoL = (Sales-Variable cost) / (Sales - Variable cost - Fixed cost)

DoL = ($10,000 - 5,500) / ($10,000 - 5,500 - 2,250)

DoL = $4,500/$2,250

DoL = 2

13. 3% / 2 = 1.5%

• DoL simply signifies how many times the operating profit increase or decrease in relation to sales.

6 0
3 years ago
The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending
aleksandr82 [10.1K]

Raw materials purchased during the year amount to: $1,081,000

<u>Giving the following information:</u>

Beginning Ending Raw materials inventory$547,000 $610,000

The raw materials used in manufacturing during the year totaled $1,018,000

<u>To calculate the direct material purchased, we need to use the following formula:</u>

Beginning Raw Materials + Purchases – Ending Raw Materials = Raw Materials Used

$547,000 + Purchases – $610,000 = $1,018,000;

Purchases = $1,018,000 + $610,000 – $547,000 = $1,081,000

<h3>What is the Cost of Raw Materials Purchased?</h3>

Purchases of raw materials, consumables and services are purchases of all commodities used as inputs in the production process and of services related to the supply of factors of production, such as renting property or equipment, leasing, temporary staff, and, in general, all outside services purchased for own use.

The cost of raw materials purchased can therefore be calculated as follows: Raw Materials Purchased = (Ending Inventory – Beginning Inventory) + Cost of Goods Sold. A direct material purchases budget determines the quantity of material purchased within a production period.

Your question is incomplete, but most probably your full question was:

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:

Beginning Ending Raw materials inventory $547,000 $610,000.The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:

A. $955,000.

B. $892,000.

C. $1,565,000.

D. $408,000.

E. $1,081,000.

Learn more about Cost of Raw Materials Purchased on:

brainly.com/question/24258358

#SPJ4

7 0
1 year ago
What is the salesperson doing when, after his presentation is over, he asks, "May I call the company and place your order for 20
Zanzabum

Answer:

trying to close the sale

Explanation:

When someone is closing a sale, he/she is trying the complete the sales process by effectively getting a purchase order. In this case, the salesperson is trying to convince the client to finally place an order for 20 cases of Ecco brand golfing shoes. The whole selling process is carried out to finally be able to close the sale, it is the climax of the sales process, the salesperson either makes it or not.

3 0
3 years ago
MacDonald​ Products, Inc., of​ Clarkson, New​ York, has the option of ​(a) proceeding immediately with production of a new​ top-
Romashka-Z-Leto [24]

Answer:

The EMV for option a is ​$5,679,100

The EMV for option b is ​$5,719,200

Therefore, option b has the highest expected monetary value.

Explanation:

The EMV of the project is the Expected Money Value of the Project.

This value is given by the sum of each expected earning/cost multiplied by each probability.

So

a) proceeding immediately with production of a new​ top-of-the-line stereo TV that has just completed prototype testing.

There are these following probabilities:

77% probability of selling 100,000 units at $610 each.

23% probability of selling 70,000 units at $610 each.

So

EMV = 0.77*E_{1} + 0.23*E_{2}

E_{1} = 100,000*610 = 6,100,000

E_{2} = 70,000*610 = 4,270,000

EMV = 0.77*E_{1} + 0.23*E_{2} = 0.77*(6,100,000) + 0.23*(4,270,000) = 5,679,100

​(b) having the value analysis team complete a study.

There are these following probabilities:

74% probability of selling 85,000 units at $720.

26% probability of selling 70,000 units at $720.

The cost of value engineering, at 120,000. So this value is going to be dereased from the EMV.

EMV = 0.74*E_{1} + 0.26*E_{2} - 120,000

E_{1} = 85,000*720 = 6,120,000

E_{2} = 70,000*720 = 5,040,000

EMV = 0.74*E_{1} + 0.26*E_{2} - 120,000 = 0.74*6,120,000 + 0.26*5,040,000 - 120,000 = 5,719,200

4 0
3 years ago
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