Answer:
The amount of cash collected in March should be:
$51,000.
Explanation:
a) Data and Calculations:
Budgeted sales and Cash Collections:
January February March April
Total sales $50,000 $60,000 $40,000 $30,000
Collections:
35% month of sales 17,500 21,000 14,000 10,500
45% month following 22,500 27,000 18,000
20% second month 10,000
Total collections in March $51,000
b) The above calculations concentrated on the month of March, being the month of interest. Though, sales on account totals $40,000, the cash collections for the month amounts to $51,000. This arises from cash collections from the months of January and February.
Answer: b. A study of the situation
Explanation: The problem-based ideation process is characterized by a workflow that begins with the study of a situation, to use of various techniques of problem identification, to screening of the resulting problems, and ends in development of concept statements for final evaluation. The aim is to generate a large quantity of ideas that can then filtered through and the best, most practical or most innovative solutions are selected.
Answer:
beginning inventory = 3,200 units
units produced during the year = 23,000
units sold during the year = 21,000
ending inventory = 23,000 + 3,200 - 21,000 = 5,200 units
variable costs per unit:
fixed costs:
A) Variable costing calculates COGS using only variable costs since fixed costs are considered period costs and are not carried over.
carrying value of initial inventory:
carrying value of ending inventory:
using variable costing = $415 x 5,200 units = $2,158,000
using absorption costing = ($415 + $75.87) x 5,200 = $2,552,524
B) net profit using variable costing:
total revenue = 21,000 x $620 = $13,020,000
- COGS = 21,000 x $415 = $8,715,000
gross contribution margin = $4,305,000
- total fixed costs = $1,745,000
net income = $2,560,000
C) net profit using absorption costing:
first we need to determine COGS = carrying value beginning inventory + (17,800 x variable manufacturing costs per unit) + (17,800 x fixed manufacturing costs per unit) = $1,570,784 + (17,800 x $355) + (17,800 x $10.6522) = $1,570,784 + $6,319,000 + $189,609 = $8,079,393
total revenue = $13,020,000
- COGS = $8,079,393
gross margin = $4,940,607
- variable SG&A = 17,800 x $60 = $1,068,000
- fixed SG&A = 17,800 x ($1,500,000 / 23,000) = $1,160,870
net income = $2,711,737
Answer: $1760
Explanation:
If the company uses accrual basis accounting, the net income will be calculated as:
Cash received for lessons = $1,350
Add: Lessons provided on account = $1,060
Less: Rental bill for may = $(650)
Net income = $1350 + $1060 - $650
= $1760
The net income is $1760
Answer:
(A) The gains of the consumers from buying imports at the low price subsidized by foreign governments would exceed the losses of domestic producers. - The Unfair-Competition Argument
Some Governments subsidise production for their companies which means that their companies are able to sell goods cheaper than the producers in the countries they export to. This is considered Unfair competition.
B) Companies may exaggerate the degree to which their products are essential to national defense in order to obtain protection from foreign competition at the expense of consumers. - National-Security Argument
Some goods produced by domestic producers need to be protected for national defense purposes and sometimes some of these producers exaggerate the importance of their goods so that the Government can protect them from foreign competition thus enabling them to charge consumers higher prices.
(C) The country may be forced into deciding between implementing trade restrictions as threatened, which would make the society as a whole worse off, or backing down on its own threat, which would cause it to lose credibility in foreign affairs. - The Protection-as-a-Bargaining-Chip Argument
Sometimes a country might threaten to impose restrictions for instance the United States on China which would make things more expensive for Americans and if they do not then it would look like China won the argument which would make the US lose face.
(D) Opening up to free trade may impose hardship on some workers in the short run, but it also creates jobs in industries in which the country has a comparative advantage and enables the country as a whole to enjoy a higher standard of living. - The Jobs Argument
David Ricardo's Comparative Advantage principle believes that free trade will lead to more jobs in the country because the country will be able to properly harness those goods it is better at producing.
The given rebuttals address the Unfair-Competition Argument, the National-Security Argument, the Protection-as-a-Bargaining-Chip Argument, and the Jobs Argument in the debate over Restricting trade.
In this question, the student is asked to identify which arguments for restricting trade each of the given rebuttals is directed against. Here are the answers:
#SPJ3
Answer:
Journal entry to record depletion expense
Depreciation expense $280,000 (debit)
Accumulated depreciation $280,000 (credit)
Explanation:
The coal mine is an economic resource controlled (ownership of risks and benefits) by Last year, Mountain Top, Inc as a result of past event (purchase transaction) from which economic benefits are expected to flow into the business (cash from sale of minerals).Therefore the coal mine is an asset!
The asset is being depleted as it is being used. This is called depreciation.
Depreciation expense in this case is calculated as :
Depreciable Account × Current harvest as a percentage of total estimated tons available
(900000-100000)× 70000/200000 = $280,000
Answer:
(Debit) Depletion expense 280,000
(Credit) Accumulated depletion 280,000
Explanation:
The coal mine is an economic resource controlled (ownership of risks and benefits) by Mountain Top, Inc as a result of past event (purchase transaction) from which economic benefits are expected to flow into the business (cash from sale of minerals).We need to record the DEPLETION of what was mined this year.
The asset is being depleted as it is being used. This is called DEPLETION.
(Cost of Asset - Salvage Value) × Current Units / Estimated Units = Depletion Amount
(900000-100000)× 70000/200000 = $280,000
Answer:
$15000
Explanation:
If the investor the outstanding shares of the other company which is less than 20% then we can report the unrealized gains or losses in the income statement. The unrealized gain can be calculated as follows:
check the attachment below