To find the net worth of a company, liabilities are subtracted from assets true or false

Sunlight Design Corporation sells glass vases at a wholesale price of $4.50 per unit. The variable cost to manufacture is $1.75

guapka [62]

Answer:

D) 5182 glass vases

Explanation:

Contribution per glass vases:

$4.5 selling price - $ 1.75 variable cost= 2.75

Operating income:

29,000 units x $ 2.75 - $ 8,500 = $71,250 operating income

Target income is to obtain a 20% increase:

71,250 x (1 + 20%) = 85,500 target income:

units needed for target income:

(85,500 target income + 8,500 fixed cost) / 2.75 contribution per unit= 34.181,81

aditional glass vases needed for target income:

34,182 - 29,000 = 5,182

3 0

2 years ago

Sunland Company purchases $50,400 of raw materials on account, and it incurs $61,300 of factory labor costs. Journalize the two

lisabon 2012 [21]

Answer:

A. Mar 31

Dr Raw materials $50,400

Cr Account pay $50,400

B. 31

Dr Factory labour $61,300

Cr Factory wages $61,300

Explanation:

Preparation of the Journal entries for Sunland Company

A. Since we were told that the company purchases the amount of $50,400 of raw materials on account this means that the transaction will be recorded as:

Mar 31

Dr Raw materials $50,400

Cr Account pay $50,400

B. Based on the information given we were told that the company incurs the amount of $61,300 of factory labor costs this means that the transaction will be recorded as:

31

Dr Factory labour $61,300

Cr Factory wages $61,300

6 0

3 years ago

Prepare income statements based on variable costing for each of the 2 years. 2.Prepare income statements based on absorption cos

enot [183]

Answer:

The question is incomplete, it is missing the accounts and numbers, so I looked for a similar question:

The Rehe Comany sells its razors at $3 per unit. The company uses a first-in, first-out actual costing system. A fixed manufacturing cost rate is computed at the end of each year by dividing the actual fixed manufacturing costs by the actual production units. The following data are related to its first two years of operation:

2011 2012

Sales 1000 units 1200 units

Costs:

Variable manufacturing 700 500

Fixed manufacturing 700 700

Variable operating (marketing) 1000 1200

Fixed operating (marketing) 400 400

2011 2012

Sales 1000 units 1200 units

Production 1400 1000

Costs:

Variable manufacturing $700 $500

per unit $0.50

Fixed manufacturing $700 $700

Variable operating (marketing) $1000 $1200

Fixed operating (marketing) $400 $400

cogs under absorption costing 2011 = ($1,400 / 1,400) x 1,000 = $1,000

cogs under absorption costing 2012 = $400 + ($1,200 / 1,000) x 800 = $1,360

1. INCOME STATEMENTS

VARIABLE COSTING

2011 2012

Total sales revenue: $3,000 $3,600

Opening inventory: ($0) ($200)

Variable manufacturing: ($700) ($500)

Ending inventory: $200 $100

Gross contribution margin: $2,500 $3,000

Variable operating: ($1,000) ($1,200)

Contribution margin: $1,500 $1,800

Fixed manufacturing: ($700) ($700)

Fixed operating: ($400) ($400)

Net operating income: $400 $700

2. INCOME STATEMENTS

ABSORPTION COSTING

2011 2012

Total sales revenue: $3,000 $3,600

COGS: ($1,000) ($1,360)

Gross margin: $2,000 $2,240

Operating costs: ($1,400) ($1,600)

Net operating income: $600 $640

3. Under variable costing, closing inventory = 400 units x $0.50 (variable production costs per unit) = $200.

Under absorption costing, closing inventory = 400 units x $1 (production cost per unit) = $400

Since closing inventory is $200 higher under absorption costing, then net operating income during 2011 increases by $200.

4. a) Variable costing is more likely to result in inventory buildups. Since variable costing determines the value of closing inventory only using variable manufacturing costs, their value is much lower. E.g. in this case the value of closing inventory 2011 under variable costing is $200, while under absorption costing it is $400. This means that less costs are transferred from one year to another.

b) Cost of goods sold must include all production costs (both variable and fixed). This way COGS costs cannot be over estimated during one year and under estimated the next.

3 0

3 years ago

If the fed believes the economy is about to fall into recession, it should

Otrada [13]

If the Fed believes the economy is about to fall into recession, it should use an expansionary monetary policy to lower the interest rate and shift AD to the right. When using an expansionary monetary policy a central bank will use its tools to stimulate the economy. They increase the supply of money, lower interest rates and increase aggregate demand.

5 0

3 years ago

Three years ago, Vincent Chow completed his degree in accounting. The economy was in a depressed state at the time, and Vincent

m_a_m_a [10]

Answer:

Prerequisite 1

There are three nonexclusive serious techniques:

Cost Leadership - target showcase exceptionally broad, point is to have the most minimal cost. Items not specific, attempt to speak to shoppers because of their low costs.

Separation - items or administrations gave elite highlights that clients need, commonly an increasingly devoted specialty. Ready to charge more significant expenses because of these additional highlights.

Center Strategy - either a cost authority or a separation methodology, yet focused for a tight, engaged market.

Vincent's business utilizes a Focus Strategy. The Cappuccino Express was made with the conviction that because of individuals' evolving schedules, comfort would be vital – giving speedy and advantageous espresso to occupied individuals.

Prerequisite 2

Basic Success Factors are the vital money related and non-monetary proportions of achievement. To be increasingly explicit Critical Success Factors are features of the association's exhibition that are essential to its upper hand.

The Cappuccino Express Critical Success Factors :

Quality and cost of existing items

Areas specific..near Malls , schools , workplaces and so forth.

Devise new items at customary interims

Client Turnover – capacity to keep lines short, vehicles traveling through line

Keeping Loyal clients with quality items along these lines diminishing ad costs

Giving incredible client support

Improving Profitability

The greater part of these Vincent will have the option to show some power about whether it is adjusting costs, items, guiding various areas or making preparing programs. Then again, if Vincent's essential supposition never again remains constant, regardless of what he does he will most likely be unable to equal the initial investment, not to mention turn a benefit.

Prerequisite 2

Vincent needs to leave on numerous assignments in dealing with The Cappuccino Express. To start with, Vincent must blueprint a statement of purpose, objectives, and destinations. As supervisor, Vincent must do statistical surveying. He should get some answers concerning his rivals, clients, and the economy. Additionally, he should utilize a workforce and train them. He should isolate the expenses into assembling costs (direct materials, direct work, and assembling overhead) and non producing costs (selling and managerial expenses). This will take into account monetary observing and precise gauges of benefits, stock, and expenses. Vincent ought to assess both of his areas and conclude whether to remain in business or grow. Additionally, Vincent ought to evaluate his item contributions, administrations, and quality. He can choose which sorts of publicizing (advancements and limits) to offer.

8 0

3 years ago