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kaheart [24]
2 years ago
15

If the direct materials price variance is $500 favorable, and the direct materials quantity variance is $250 unfavorable, the jo

urnal entry will include a: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Business
1 answer:
Alexus [3.1K]2 years ago
7 0

Answer:

Credit to direct materials price variance

Debit to direct materials quantity variance

Explanation:

Based on the information given in a situation where the direct materials price variance of the amount of $500 is FAVORABLE, and the direct materials quantity variance of the amount of $250 is UNFAVORABLE, the journal entry will include: CREDIT TO DIRECT MATERIALS PRICE VARIANCE and DEBIT TO DIRECT MATERIALS QUANTITY VARIANCE reason been that a variance that is FAVOURABLE are CREDITED while UNFAVORABLE Variance on the other hand are DEBITED.

Therefore The journal entry will include:

Credit to direct materials price variance

Debit to direct materials quantity variance

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Indiana Co. bega n a construction project in 2018 with a contract price of $150 million to receive when the project completed in
Liula [17]

Answer: C) Recognized $9 million gross profit on the project in 2018.

Explanation:

Duration of construction project from 2018 to 2020 = 3 years

Cost incurred by Indiana co. in 2018 = $36 million

Estimated additional cost for the remainder of the project = $84 million

Total cost to be incurred over the duration of the project = $36 million + $84 million = $120 million

To calculate the percentage of the project completed, we use the cost figures;

Cost incurred so far (in 2018) ÷ Total cost to be incurred × 100

36,000,000/ 120,000,000 × 100 = 30%

Total revenue from contract (which is the contract price) = $150 million

Indiana Co. recognizes revenue according to the percentage of the project completed. Therefore, revenue recognized after 30% of the project is completed (which is the revenue for 2018) = 30% of $150,000,000

Revenue for 2018 = 30/100 × 150,000,000 = $45,000,000

Profit recognized on the project in 2018 = Revenue for 2018 - Cost incurred in 2018

Profit = $45,000,000 - $36,000,000

Gross profit recognized in 2018 = $9,000,000

5 0
2 years ago
Hemmer Company reported net income for 2016 in the amount of $43,000. The company's financial statements also included the follo
LenKa [72]

Answer:

C. $49,600.

Explanation:

We can find the net cash provided by operating activities using the information given to us in the question. We will start from net income which is $43,000 and then add 5,800 to it because it is a current asset which is decreasing which means that the company received cash for it, then we will subtract 1,900 because it is an increase in inventory and we assume the company paid cash for it because there are no increase in accounts payable, and then we will add 2,700 because depreciation is a non cash expense, therefore we will add it back when we calculate the cash provided by operating activities.

43,000+ 5,800-1,900+2,700=49,600

4 0
2 years ago
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $70. Limit Buy
harkovskaia [24]

Answer:

<u><em>$69.80</em></u>

Explanation:

Note, a market order is an order designed to execute an order immediately by <em>matching the best available price</em> on the sell order list.

When we look carefully at the sell order book, we observe that the only sell order containing the specified quantity of 120 units of shares at a price close to the market price is <u>$69.80.</u> Even though there are other cheaper orders are available, their order quantity does <em>not </em>match the market buy order for the 120 shares and thus would not be filled.

7 0
2 years ago
Dave and Ellen are newly married and living in their first house. The yearly premium on their homeowner’s insurance policy is $6
oksian1 [2.3K]

Answer:

1. 48 dollars

2. 30 dollars

Explanation:

The yearly premium on their homeowner's insurance policy is $600 for the coverage they need.

Their insurance company offers a discount of 8 percent if they install dead-bolt locks on all exterior doors.The couple can also receive a discount of 5 percent if they install smoke detectors on each floor.

1. What discount will Dave and Ellen receive if they install the dead-bolt locks?

discount for deadbolts =

Discount % x Premium

0.08 x 600 = 48 dollars

b. What discount will Dave and Ellen receive if they install smoke detectors?

discount for deadbolts =

Discount% x Premium

0.05 x 600 = 30 dollars

5 0
3 years ago
The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of the following best describes
Leokris [45]

Answer:

1. Equity is the difference between the company's assets and liabilities.

2. D. $83

Explanation:

Req. A

We know,

The accounting equation is

Total asset = total liabilities + total stockholders' equity

Therefore, total asset - total liabilities = total stockholders' equity

So, we can say that equity is the difference between the company's assets and liabilities. However, equity cannot be claimed before the liabilities. Therefore, the option "A" is the correct answer.

Req. B

                          Now Inc.

      Statement of retained earnings

For the year ended, December 31, 20XX

Beginning retained earnings (Last year)                $527

Add: Net Income (Current year)                                 176

Less: Dividend (Balancing)                                   <u>     </u><u>(83)</u>

Ending retained earning (Current year)                 $620

Calculation: $(527 + 176 - 620) = $83

Therefore, the option "D" is the correct answer.

3 0
2 years ago
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