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8_murik_8 [283]
2 years ago
7

MC Qu. 138 Fortune Company's direct materials... Fortune Company's direct materials budget shows the following cost of materials

to be purchased for the coming three months:JanuaryFebruaryMarch Material purchases$ 13,18015,29012,110 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,900. The expected January 31 Accounts Payable balance is:
Business
1 answer:
Usimov [2.4K]2 years ago
7 0

Answer:

The answer is "$6,590".

Explanation:

If 50% of the purchase amount would be paid in the next month, the account payable in January will thus amount to 50% of the item purchased in January. In January, all accounts payable at the start of Dec will therefore not be added to the trade payables for January.

=\$ 13,180 \times 50\%\\\\=\$ 13,180 \times \frac{50}{100}\\\\=\frac{\$ 659000}{100}\\\\=\$ 6,590\\\\

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Money that has been or will be paid regardless of the decision whether to proceed with the project is:
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Answer:

Sunk costs.

Explanation:

Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.

Example

ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.

Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.

4 0
2 years ago
Expenses recognition Sun Microsystems uses the accrual basis of accounting and recognizes revenue at the Lime it sells goods or
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Answer:

Sun Microsystems

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b. Utility Expense = $4,650

c. Supplies Expense = $9,700

d. Property Taxes = $1,800

e. No expense is recognized.

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Data and Calculations:

a. Rent Expense = $180,000/12 * 2 = $30,000 Rent Prepaid $150,000

b. Utility Expense $4,560

c. Supplies Expense $9,700 ($12,600 - $2,900)

d. Property Taxes = $7,200 *3/12 = $1,800

e. No expense is recognized for the advance payment for delivery van.

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Answer:

Momentous Occasions

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Explanation:

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3 years ago
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Answer:

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c. Bob's basis in the property

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Answer:

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Explanation:

Hope this helps

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