Answer:
True
Explanation:
That is true for any product but luxury products.
Answer:
a. $236.32 per unit
Explanation:
The Full question is "Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. Overhead Total Direct Labor Hours DLH per Product A B Painting Dept. $250,000 10,000 16 4 Finishing Dept. 75,000 12,000 4 16 Totals $325,000 22,000 20 20"
A single plant wide factory overhead rate is been used. Thus, Overhead rate per hour = $325000 / 22000 hrs = $14.77
The total hours required to produce a product = 20 hours in painting + 20 hours in finishing
The total hours required to produce a product = 40 hours
Overhead per product = Overhead rate per hour * The total hours required to produce a product
Overhead per product = $590.8
The DLH required for a product A in painting department = 16 DLH
. Overhead rate per unit for product A in painting department = ($590.8/40 DLH) *16 DLH = $236.32 Per Unit
Answer:
Alpine West, Inc.
a. When Alpine West, Inc. should recognize revenue from the sale of its season passes evenly over five months from December to April when the passes are put to use.
b. General Journal for
November 6:
Debit Cash Account $460
Credit Deferred Revenue $460
To record the purchase of a season ticket or pass by Jake Lawson.
December 31:
Debit Deferred Revenue $92
Credit Service Revenue $92
To record the ski service consumed by Jake Lawson for December.
c. In Alpine West, Inc.'s income statement and balance for 2013, the following amounts will be included in relation to the sale of the season pass to Jake Lawson:
Income Statement: Service Revenue $92 and related costs.
Balance Sheet: Deferred Revenue (Liabilities side) $368 ($460 - 92).
Explanation:
Alpine West, Inc. will make the above entries in accordance with the accrual concept and matching principle of generally accepted accounting principles. These require that revenue, income, and expenses related to a period must be accrued for that period whether actually received / paid or not. It also means that the costs incurred for any revenue generated must be matched to the revenue and vice versa for that particular period.
False. Companies actually pay 5 million for a 30 second ad on the Super Bowl.
Answer: d. Calculate his net working capital
Explanation:
A company's liquidity is shown by the current assets that it has. These assets are to be used to pay off current liabilities as well so in checking for liquidity, it is best to remove current liabilities from current assets as this shows how liquid the company is in that period.
This is what the Net Working Capital is. It is a result of deducting the Current liabilities from the current assets. When Thomas calculates this, he will be able to see how liquid his company is and if he is able to pay off short-term debt and still have enough for other transactions.
