Explanation:
Menu cost, shoe leather cost, losing money and wealth redistribution from creditors to debtors through inflation.
Most people cut down their spending when they are not making enough money or when there is continuous increase in price, during this period people are mindful of what they spend money on, this will lead to lowered economic growth over a long period of time.
The most important will be the effect of money losing it's value, the fact that money loses its purchasing power which will lead to decrease in demand for goods and services as well as lack of savings will increase the bottleneck on welfare services as people will rely more on them, this will hurt US the most.
Answer:
Credit Inventory and debit cost of sales with cost of inventory $620 and
Credit Sales and Debit Account receivable or Cash for Sale value of $960
Explanation:
Under the Perpetual inventory system, no purchases account are maintained rather an on-going balance for two accounts are maintained, namely: 'cost of goods available for sale' and 'cost of goods sold'.
Since no purchases account is maintained under this method, the inventory account is updated with every purchase of inventory, and all expenses relating to inventory directory.
So if Davis makes a sale of inventory costing $620 for $960 on account, the following entries will be effected.
Dr Cost of Sales............................620
Cr. Inventory...............................................620
Dr. Accounts Receivable............960
Cr. Sales....................................................960
Being sale of goods worth $620 at $960
Answer:
$118,860
Explanation:
Gross Margin:
= Revenue - Cost of Goods Sold
= $290,000 - $100,000
= $190,000
Profit before tax:
= Gross Margin - Salaries - Insurance payment - Interest
= $190,000 - $12,000 - $3,600 - $4,600
= $169,800
Insurance payment: Only half of 2-year payment of 7,200 is relevant for this year.
Net Income:
= Profit before tax - Tax at 30%
= $169,800 - (30% × $169,800)
= $169,800 - $50,940
= $118,860
Answer:
$492,000
Explanation:
Data provided in the question:
Budgeted units manufactured = 50,000 squares
Fixed manufacturing costs = $12000
Variable manufacturing costs = $16.00 per square
Actual units produced = 30,000 squares of shingles
Now,
Budgeted Total Manufacturing Costs = Fixed Cost + Variable Cost
or
Budgeted Total Manufacturing Costs
= $12,000 + $16.00 × Actual units produced
= $12,000 + $16.00 × 30,000
= $12,000 + $480,000
= $492,000