Answer:
The correct answer is letter "B": There is no general rule for when an account becomes uncollectible.
Explanation:
Accounts Uncollectible represent any form of debt as a result of sales on credit that are likely not to be paid. Before classifying debt as uncollectible there is an unset timeframe that may go by.
At first, the sale on credit is considered an account receivable with a payment promise usually of 30 or 90 days. If three month passes but no payment is received, the account is considered aged receivables but if more time goes through without payment, the account then is labeled as doubtful.
Doubtful accounts become allowances if the company decides to take care of the payment of the debt with its own profit. <em>There is no set rule when an account receivable becomes uncollectible. It relies on the judgment of the firm.</em>
Answer:
the total manufacturing cost is $215,000
Explanation:
The computation of the total manufacturing cost is shown below:
= Direct material used + direct labor cost + manufacturing overhead cost
= $69,000 + $92,000 - $8,000 + $25,000 + $37,000
= $215,000
Hence, the total manufacturing cost is $215,000
We simply applied the above formula
Answer:
d. $2.10 per unit
Explanation:
Calculation for What is the company's unit contribution margin
First step is to calculate the Variable cost using this formula
Variable cost = Variable Manufacturing Expenses + Variable Selling & Administrative Expenses
Let plug in the formula
Variable cost = $297,000 + $165,000
Variable cost = $462,000
Second step is to calculate Total Contributiom Margin using this formula
Total Contributiom Margin=Sales – Variable Cost
Let plug in the formula
Total Contributiom Margin= $924,000 - $462,000
Total Contributiom Margin= $462,000
Now let calculate Unit Contribution Margin using this formula
Unit Contribution Margin= Total Contribution Margin/Total number produced and sold cement
Let plug in the formula
Unit Contribution Margin = $462,000 / 220,000 Unit Contribution Margin= $2.10 per unit
Therefore the Unit Contribution Margin will be $2.10 per unit
Answer:
B. decrease
Explanation:
The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.
Answer:
- <u>Sale, March 14 (1,380 units) cost of goods sold = $117,200</u>
- <u>Sale, August 31 (1,550 units ) cost of goods = $96,100</u>
- <u>Ending inventory = 1,800 units</u>
<u>Explanation</u>:
a. Cost Of Goods Sold Using LIFO
<u>1. Sale, March 14 (1,380 units)</u>
- from May 1 purchase)
1,130 units at $90= 1130*90= $101,700
+
from January 30 purchase
250 units from 2,150 units at $62 = $15,500
Total= 15,500+101,700= $117,200
<u>2. Sale, August 31 (1,550 units )</u>
- from January 30 purchase
1,550 units from 1900 units leftover
1550 at $62 = 1550*62= $96,100
b. Ending inventory
350 units leftover from January 30 purchase + 1,450 units of Beginning inventory, January 1 = 1,800 units
