This is the presentation of the income statement of
Builtrite in order to compute the net income:
Sales $700,000
Less: COGS $280,000
Gross Profit $420,000
Less: Operating expenses ($700,000 x 25%) $175,000
Dividends
expense $25,000
Capital loss $70,000 $270,000
Total $150,000
Add: Dividend income $40,000
Capital gain $55,000 $95,000
Net income $245,000
Answer:
$ 2,829,276
Explanation:
The budgeted direct labour cost is going to be based on the budgeted production units.
Production budget = sales budget + closing inventory -opening inventory
Production budget = 46,000 - 140 + 580 = 45,560
Labour budget = Production budget× hours per unit
= 45,560× 2.7 hrs × $23
= $ 2,829,276
Answer:
What is meant by parent company?
A parent company is a single company that has a controlling interest in another company or companies. Parent companies are formed when they spin-off or carve out subsidiaries, or through an acquisition or merger.
Explanation:
What Is a Parent Company?
A parent company is a company that has a controlling interest in another company, giving it control of its operations
Answer:
$47,200
Explanation:
For computing the budgeted purchase, first we have to determine the purchase unit which is shown below:
= Sale units + ending inventory units - beginning inventory units
where,
Sale units are 1,300 units
Ending inventory units = 900 units × 30% = 270 units
Beginning inventory units = 1,300 × 30% = 390 units
Now put these units to the above formula
So, the units would equal to
= 1,300 units + 270 units - 390 units
= 1,180 units
Now the budgeted purchase would be
= 1,180 units × $40
= $47,200
