A local business is a busses that sells its products and services to consumers in its own city or town.
Answer:
2015 - $24,000
2016 - $0
Explanation:
The computation of profit for each year is shown below:
For 2015:
The profit = Service revenue - expenses incurred
= $72,000 - $48,000
= $24,000
For 2016:
There is no transaction to record under the accrual basis of accounting. So, the profit is zero
As in accrual basis of accounting, whether cash is received or not the transaction should be reported in the books of accounts
Answer:
a. $265,000
Explanation:
Process costing is one of method to assign cost to manufactured unit. This method is most commonly used for identical units produced.
Terada Corporation also uses process costing system. In April $241,000 units were transferred out of the department. To identify the total cost under weighted average method we can add up beginning work in process and units transferred out. We get $265,000 if we add up beginning work in process inventory and cost of units transferred out from the department.
= $24,000 + $241,000
= $265,000.
What does the consumer price index measure? B. the change in prices of specific goods and services over time. The consumer price index is also know as the CPI when reffering to this calculation. The CPI measures the weighted items of specific consumer goods and services by averaging them overtime. The CPI allows for comparison of the same products that consumers use on a daily basis and see how much they are using each year. This lets us know how the economy is doing as it relates to inflation. Inflation is the increase in prices and decline of the purchasing value of money in an economy.
