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hjlf
2 years ago
5

Wang Company accumulates the following adjustment data at December 31.

Business
1 answer:
horrorfan [7]2 years ago
3 0

Answer:

(a)Type of adjustment is accrued revenue. The account was understated before adjustment.

(b) The type of adjustment is prepaid expense. The account was overstated.

(c) The type of adjustment is accrued expense which has been understated.

(d) Adjustment type is unearned revenue. The account was understated.

(e) Salaries of $620 are unpaid. - Adjustment type is accrued expense and the account was understated.

(f) Prepaid expense which was overstated before adjustment.

Explanation:

(a) Services performed but unbilled totals $600 - Since the service has been provided, revenue has been earned and should have been recognized with the corresponding debit to the accrued revenue account. Before adjustment, the accrued revenue account would have been understated.

(b) Store supplies of $160 are on hand. The supplies account shows a $1,900 balance. -  This shows that stores supplies of $1,740 (the difference between $1,900 and $160) had been used up and should have been recognized as expense. As such, the type of adjustment is to prepaid expense. The account was overstated before adjustment as the balance should be $160 and not $1,900.

(c) Utility expenses of $275 are unpaid - The adjustment should have been posted to expense and accrued expense. Hence the type of adjustment is accrued expense which has been understated before adjustments.

(d) Service performed of $490 collected in advance - When the advance was collected, unearned revenue should have been recognized. Since it was not recognized before adjustment, the account was understated.

(e) Salaries of $620 are unpaid. - This is an accrued expense as the expense has been incurred but is yet to be paid. A non recognition before adjustment means the account was understated.

(f) Prepaid insurance totaling $400 has expired - This means that the prepaid insurance should have been derecognized since it has expired. As such, the account was overstated before adjustment.

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Sales variance analysis is used by managers for: Select one: a. Planning purposes only. b. Budgeting purposes only. c. Control p
pychu [463]

Answer:

e. Planning and budgeting purposes.

Explanation:

Sales variance analysis is used by managers for planning and budgeting purposes, as this analysis allows managers to better understand the company's sales scenario in a given period in relation to different variables such as budgeted quantity, quantity sold and amount of profit made.

Through analysis, greater control and strategic planning and future budgets are possible so that an organization remains profitable and competitive in the market.

5 0
3 years ago
A firm is planning to manufacture a new product. As the selling price is increased, the quantity that can be sold decreases. Num
Oduvanchick [21]

Answer:

Profit Maximising Quantity = 775

Explanation:

Price P = 35 - 0.02Q

Total Revenue TR = Price x Quantity = P X Q

= (35 - 0.02Q)(Q)  = 35Q - 0.02Q^2

Total Cost TC = 8000 + 4Q

Profit = TR - TC

[35Q - 0.02Q^2] - [8000+4Q]  =  35Q - 0.02Q^2 - 8000 - 4Q

Profit Function = - 0.02Q^2 + 31Q - 8000

To find out profit maximising Quantity , we will differentiate Profit Function with respect to Q & equate it to 0.

dTR/ dQ = -0.04Q + 31 = 0

Q = 31/0.04 = 775

To verify whether 775 is profit maximising Q, we will do second derivative & check that it is negative.

d^2TR/ dQ^2 = -0.04 i.e < 0 (negative)

So 775 is profit maximising quantity

5 0
3 years ago
An automotive part manufacturer can produce at a rate of 5000 units per day. It supplies the parts to a local Auto assembly plan
Zanzabum

Answer:

Optimal  production run= 816 units per run

Explanation:

T<em>he optimal production run is the economic batch units that minimizes the balance of set-up cost and holding cost. It can be determined by adjusting the economic order quantity (EOQ) model for gradual replenishment ,</em>

EBQ = √(2× Co× D)/Ch(1-D/R)

EBQ- Economic /optimal production run

Co- set-up cost per run

Ch- holding cost per unit per annum

D- Annual Supply- 9800× 280

Production rate per day-5000

Optimal  production run =

√(2×50× 800×280)/(40×(1-800/5000))

=816.4965809

Optimal  production run= 816 units per run

7 0
3 years ago
Anything that an employee can give to himself as a reward for "good" performance on the job is known as a(n:
Burka [1]
<span>The answer is a self-reinforcer.</span>
7 0
3 years ago
Joe Kraft writes a series of short stories and one of the stories is published in a magazine. Later, Kraft learns that Robert Ri
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Answer:

The answer is letter A. Yes, he will win.

Explanation:

a. Yes, because Kraft's story was copyrighted automatically when he wrote it, and Kraft is selling the copyrighted material without Kraft's permission.

Because, according to the copyright protection, it protects the autor's tangible idea, and automatically when he puts it into a tangible form. So, when Kraft wrote his story, it was protected immediately.

5 0
3 years ago
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