Answer:
It is 1.12 (B)
Explanation:
Profitability Index= PV of Future cash flow/Initial Investment
= $72,800/$65,000
=1.12
The index is a useful tool for ranking investment projects and making decision most especially when there is limited capital availbal and all the viable projects cannot be executed. It showed the value created per unit of investment.
Hence, the higher the profitability index, the more attractive the investment is.
ANSWER: To calculate the gross profit for the month of August, Gibson will have to find out the sales in his company. Gibson had a opening stock of 200 units of products valuing $8 per unit. The total value of the stock available at the opening of the month is $8 x 200 units = $1,600. If he uses the average cost method to calculate the inventory cost, he will need the opening stock and the production done in the month of August. This will give him the figure which will show his entire stock which were available for sale in the month.
Let's assume the entire stock produced in the month of August to be 'x', so the total stock available for sale was '$1,600+x'. This amount needs to be subtracted by the closing stock of the month to get the actual value of sales that has happened during the month of August. So, dividing the actual value of sales by the production cost of the sold number of units will give Gibson the gross profit for the month of August.
Answer:
Dr Work in Process Inventory for $6,000
Cr Manufacturing $6,000
Explanation:
Preparation of The journal entry under perpetual inventory procedure
Based on the information given if the Manufacturing overhead was applied to production at 60% of the direct labor cost of the amount of $10,000 which means that The journal entry under perpetual inventory procedure is :
Dr. Work in Process Inventory for $6,000
Cr Manufacturing $6,000
(60%*$10,000)
I believe you’re thinking of the accounting department
hope this helps (:
$6,000.00 - ($2,050.00 - $750.00) =
$6,000.00 - $1,300.00 = $4,700.00
Bad debt expense for 2019 would be: $4,700.00
