Cash will be debited and sales will be credited by $6,120 and cost of good sold with be debited and inventory will be credited by $3,540.
A journal entry is the act of maintaining or producing records of any economic or the non-economic transaction. An accounting journal, which shows a company's debit and credit balances, records transactions. The journal entry may have many records, each of which is either a debit or a credit.
The journal entry to record days cash sales would be as given below:
Cash (Dr) $6,120
To sales $6120
(Being cash sales of $6,120)
Cost of good sold (Dr) $3,540
To inventory $3,540.
(Being cost of cost of good sold)
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Answer:
Shortage cost for May is $71,000
Explanation:
The expected demand for the month of May is 5000 units.
Shortages for month are carried to next month.
Shortage cost is $10 per month.
(Working days per month x hrs/day x # of workers)
20 days * 8 hours * 23 workers = 3680
Jan : 3680 - 3500 = +180
Feb : 3680 + 180 - 4500 = -640
Mar : 3680 - 640 -6000 = -2980
Apr : 3680 - 2980 -6500 = 5780
May : 3680 - 5780 -5000 = 7100
Answer:
D. All of the above.
Explanation:
Absorption costing is the method in which cost is charged on the basis of the actual expenses and facilities absorbed ion the production.
This basically charges usually more cost, in comparison to activity based costing.
In this manner since cost charged is more, the profit for the company is reduced. Accordingly the managers then prefer to produce as much as they can.
The main focus of management is for production.
Even in case this requires maintenance they put the resources into production rather than maintenance.
Thus, all of the statements are true.
Option b. 7.78% is the correct answer. The cost of equity from retained earnings is 7.78% as per the CAPM approach
The relationship between systematic risk, or the general dangers of investing, and expected return for assets, particularly stocks, is described by the Capital Asset Pricing Model (CAPM).
A linear relationship between the required return on investment and risk is established by this financial model.
Retained earnings refer to the total earnings that a company has generated from its operations minus the dividends distributed among shareholders. The retained earnings are earnings reinvested in the business.
The calculation is shown below.
Cost of equity = Risk-free rate + (beta * Market risk premium)
Cost of equity = 4.10% + (0.70 * 5.25%)
Cost of equity = 4.10% + 3.675%
Cost of equity = 7.77% or 7.78%
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Answer:
a. 42.0% for 2017 and 32.0% for 2016
Explanation:
Common size % for cost of goods sold = Cost of goods sold/Net sales
<u>For 2017</u>
= $219,400 / $522,200
= 0.4201456
= 42%
<u>For 2016</u>
= $135,440 / $423,400
= 0.31988663
= 31.99%
