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bagirrra123 [75]
3 years ago
15

Guay Corp., a start-up company, provided services that were acceptable to its customers and billed those customers for $400,000

in 2015. However, Guay collected only $280,000 cash in 2015, and the remaining $120,000 of 2015 revenues were collected in 2016. Guay employees earned $200,000 in 2015 wages that were not paid until the first week of 2016. How much net income does Guay report for 2015?
Business
1 answer:
andrezito [222]3 years ago
4 0

Answer:

$200,000

Explanation:

Here, in the solution the tax effects are ignored as tax rate is not provided.

Since accrual basis is the acceptable basis, we have:

All the revenues and expenses are to be recognised in the period it belongs to, and not when the actual cash payment is received or made.

Total revenue earned in 2015 = $400,000

Total expense (Wages of employees) for 2015 = $200,000

Therefore, net income for 2015 = $400,000 - $200,000 = $200,000

Note: It is of no relevance that when actual cash was realised from debtors and when actual payment was made to employees.

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The Nite Lite Factory produces two products - small lamps and desk lamps. It has two separate departments - finishing and produc
lesya692 [45]

Answer:

$11.1

Explanation:

We can calculate the factory overhead allocated to a unit using multiple department factory overhead rate methods with an allocation base of direct labor hours. In this method, we will divide the te total overhead cost in direct labor hours consumed in that department.

Solution

Direct Labor  Overhead  rate for Finishing = $550,000/500,000

Direct Labor  Overhead  rate for Finishing = $1.10  per hour

Direct Labor  Overhead rate for Production = $400,000/80,000

Direct Labor  Overhead rate for Production = $5

Overhead for DeskLamps = (Direct labor hours in Finishing x Direct Labor  Overhead  rate for Finishing + Direct Labor hours in Production x Direct Labor  Overhead rate for Production)

Overhead for DeskLamps= (1x$1.10 + 2x$5)

Overhead for DeskLamps= $11.1

3 0
3 years ago
3.1. Explain which of the following approaches to strategy formulation is more likely to generate economic profits: (a) evaluati
Radda [10]

Answer:

Option B.

Explanation:

Employing internal based resources gives a better competitive edge to an organisation as those resources are already in place. This eliminates extra cost of getting new funding or resources as in option A.

5 0
3 years ago
A company produces a single product. Variable production costs are $12.50 per unit and variable selling and administrative expen
wlad13 [49]

Answer:

value of ending inventory under variable production is $104375

Explanation:

given data

Variable production costs = $12.50 per unit

variable selling and administrative expenses = $3.50 per unit

Fixed manufacturing overhead totals = $41,000

Fixed selling and administration expenses total = $45,000

production = 4,500 units

sales = 3,850 units

to find out

the dollar value of the ending inventory under variable costing would be

solution

we find here ending inventory that is express as

ending inventory = production - sale

ending inventory = 4500 - 3850

ending inventory = 8350

so

variable production cost of 8350 units are

variable production cost = 8350 × $12.50

variable production cost = $104375

so value of ending inventory under variable production is $104375

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3 years ago
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BaLLatris [955]

Answer:

A) . It is going to be a while before things get better in the United States.

Explanation:

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3 years ago
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A technique known as bug listing is one useful strategy for problem finding. A bug list is known as making a list of theings that bug you. When this list is made, you can help solve the problems that are bugging you in your life instead of dwelling on things that may never change or dwelling without changing your life.

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