Job order costing can be applied or used at the same time with

On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the

Illusion [34]

Answer:

The journal entry that is to be recorded on May 1 is shown below:

Explanation:

May 1

The first entry to be posted:

Accounts Receivable A/c...................Dr $5,800

Sales A/c............................................Cr $5,800

As the company made a sale, so the sale is credited and it made against the accounts receivable. Therefore, accounts receivable account is credited.

The second entry to be posted is as:

Costs of goods sold A/c....................Dr $4,000

Merchandise inventory A/c...................Cr $4,000

The cost of the goods sold amounts to $4,000. So, the account of COGS is debited and it is against the inventory. Therefore, the merchandise inventory is credited.

8 0

3 years ago

Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of

nlexa [21]

Answer:

$17.80 per labor-hour

Explanation:

Predetermined overhead rate = Budgeted Fixed Overheads ÷ Budgeted Activity

= $961,200 ÷ 54,000 labor-hours

= $17.80 per labor-hour

Predetermined overhead rate for the recently completed year is $17.80 per labor-hour.

7 0

3 years ago

An entrepreneur needs to raise $20,000 for improvements to her factory. She plans to contribute 60 percent of this sum from her

Karolina [17]

Answer:

$8,000

Explanation:

The entrepreneur needs $20,000. She can raise 60% from savings. It means she needs to generate 40% from other sources.

40% of $20,000 is

=40/100 x $20,000

=0.4 x $20,000

=$8,000

8 0

3 years ago

Howard Bowen is a large-scale cotton farmer. The land and machinery he owns has a current market value of $11 million. Bowen owe

givi [52]

Answer:

A. $1,510,000

B. -$10,000

Explanation:

a. Calculation to determine Bowen’s Accounting profits

Using this formula

Accounting profits = Total revenue - Explicit cost

Let plug in the formula

Accounting profit = $10 million - $8 million - $40,000 - $400,000 - $50,000

Accounting profit= $1,510,000

Therefore Bowen’s Accounting profits is $1,510,000

b. Calculation to determine Bowen’s Economic profit

Using this formula

Economic profits = Accounting profit - Implicit cost

Let plug in the formula

Economic profits = $1,510,000 - [($11,000,000*0.1) + $30,000 + ($60,000 - $40,000)]

Economic profits =$1,510,000 - [$1,100,000+ $30,000 + $60,000 - $40,000)]

Economic profits =$1,510,000-$1,150,000

Economic profits =-$10,000

Therefore Bowen’s Economic profit is -$10,000

4 0

3 years ago

Hi-Tech, Inc., reports net income of $65.0 million. Included in that number are depreciation expense of $5.5 million and a loss

Greeley [361]

Answer:

Net Cash Flows from operating activities is $68.5 million.

Explanation:

The indirect Method would be used here because all we will find the cash expenses and revenues that were converted into within the year and are reported in the income statement by calculating the increase and decrease in the current assets and current liabilities. Here we will also eliminate the non cash expense effects by adding them back.

The net cash flows from operating activities can be calculated using the following method:

Millions

1. Net Income 65

Add Non Cash Deductions

2. Depreciation 5.5

3. Loss on sale of Equipment 1.5

Add / (Less) the increase or 

decrease in current Assets or 

liabilities

4. Increase in Trade Receivables (2.5)

5. Increase in Trade Payables 3.5

6. Increase in inventory (4.5)

Net Cash Flows from operating activities $68.5

4 0

4 years ago