Answer:
The correct order is option B.
Explanation:
As the order is in which the items are in the process of the subsidiary is given as by option B.
Option A is not true as the step of receiving report is not at the start of the process.
Option C is not true, because all the steps are not included.
Option D is not true as well because all the steps are not included.
Answer:
In Barton and Barton Company's general journal, entry required include:
Debit Retained Earnings Account with $8.2 million
Credit Opening Inventory with $8.2 million
Being reversal of overstated inventory due to change from FIFO to Average cost method.
Explanation:
The debit entry to the Retained Earnings Account will reduce the balance by $8.2 million. The effect of overstating the closing inventory is overstatement of the net income because the cost of sales was understated as a result of the inventory overstatement.
The credit entry to the Opening Inventory reduces the balance to the new balance based on the average cost method of $23.8 million.
The FIFO cost method or First-In, First-Out method is an inventory costing method that assumes that goods that were bought first were the ones to be sold first. The inventory cost is therefore valued with the most recent quantity and cost price.
On the other hand, the Average Cost Method, also called the Weighted Average Cost Method, calculates the inventory cost by adding all the period's inventory and dividing it by the quantity for the period. This gives an average cost which is in turn used to multiply the quantity of inventory at the end of the period to obtain the inventory cost.
Both methods are estimates that produce different results and affect the reported net income differently. There is always the need for consistency in choosing the method to apply so that reported net income is not unduly distorted.
Answer: All of the above
Explanation:
The options include:
a. It's available 24 hours a day, 7 days a week.
b. All reports are handled in a highly confidential manner.
c. You do not have to identify yourself on the call.
d. All of the above.
An ethics line refers to the anonymous on-line system which can be used by an employee to report bad behavior or something unethical or illegal.
Ethics line are typically available 24 hours a day, 7 days a week and reports made are confidential. Therefore, the correct option is "All of the above".
Answer:
6.56%
Explanation:
Given:
The amount paid to the bank = $2,000
Let the interest rate paid be 'r'
By compound interest ,
After 1 year the paid amount will be $2000 × ( 1 + r )
Now,
the bank is paying $140 every year
thus,
2000 × ( 1 + r ) = 
or
2000r + 2000r² = 140
on solving the above quadratic equation, we get
r = 0.0656
or
r = 6.56%
Hence,
interest rate the bank advertising = 6.56%
Answer:
$2,925 Unfavorable
Explanation:
The computation of direct labor rate variance is shown below:-
Actual rate = Direct labor cost ÷ Actual direct labor hours
= $5,250 ÷ 150
= 35
Direct labor rate variance = (Selling rate - Actual rate) × Actual hours rate
= ($15.50 - 35) × 150
= -$19.5 × 150
= $2,925 Unfavorable
Therefore for computing the direct labor rate variance we simply applied the above formula.
