Answer:
The answer is intensive distribution strategy.
Explanation:
Intensive distribution strategy occurs when a company tries to sell their products through as many outlets as possible, thus ensuring that customers will encounter the company’s products in various distributor points. It is generally done to increase sales of products. Companies that would use this type of strategy are typically those that are competing in a perfect competition market, since product unavailability would just make customers of the product use a different brand from a competitor’s company instead.
The journal entry for the issuance of the stock for issue of 40 shares at a par value of $20, will affect a credit to Common Stock for $800.
<h3>What is a journal entry?</h3>
The process of maintenance of systematic and chronological records of financial transactions during a given financial period is known as a journal entry.
Hence, option C holds true regarding the journal entry.
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Answer: Batch size to be used =Economic batch size of 2,236 units
Explanation:
From the question, we have that
Annual demand (D) = 10,000 units
Setup cost (S) = $200
Holding cost (H) = $2 per unit per year
Daily production (p) = 100 units per day
Daily Demand (d) = 40 units per day
Therefore Economic batch size, Q will be calculated as
Q =
Q= 
Q=
Q=
Q=2,236.067 rounded up to 2,236
Economic batch size =2,236 units
Answer:
1. LAND
All expenses that went into the preparation of a fixed assets such as land to make it available for use should be capitalized and this includes taxes.
2. EQUIPMENT.
As explained above, the expense here was incurred trying to get the machinery to be available for use so it should be capitalized.
3. EQUIPMENT.
The same logic as the above stands here as well.
4. LAND IMPROVEMENTS.
This expense does not fall under the primary purpose for which the site was acquired but is still an improvement so even though it will not be capitalized to land, it goes to Land Improvements.
5. EQUIPMENT.
The name and slogan are part of the preparation of the vehicle for use so need to be capitalized.
6. EQUIPMENT.
Installation costs are to be capitalized because they are necessary to ge the asset working.
7. PREPAID INSURANCE.
Period costs (costs that provide benefits for a year or less) are to be expensed and not capitalized which is why this is posted to prepaid insurance.
8. LICENSE EXPENSE.
Licenses typically last a year so this is a period cost that should be expensed.
Answer: D. $6,000
Explanation:
Given the following :
Activity cost pool
- - - - - - - - - - - - - - - - - - Machining Order Filling Other
Equipment depreciation 0.40 - - - - - 0.10 - - 0.50
Supervisory expense - - 0.20 - - - - - 0.30 - - 0.50
First stage allocation:
Overhead cost
Equipment depreciation - $51,000
Supervisory expense - $3000
Order filling:
Equipment depreciation - $51,000 × 0.1 = $5100
Supervisory expense - $3000 × 0.3 = $900
Total overhead - $( 5100 + 900) = $6,000
