Answer:
Production= 26,000
Explanation:
Giving the following information:
budgeted sales of 23,000 units, targeted ending finished goods inventory of 9,000 units, and beginning finished goods inventory of 6,000 units.
<u>To calculate the production required, we need to use the following formula:</u>
Production= sales + desired ending inventory - beginning inventory
Production= 23,000 + 9,000 - 6,000
Production= 26,000
Answer:
True
Explanation:
Stock ownership plans refer to those plans whereby the existing employees are provided with an opportunity to purchase the stocks of the company at a lower price than they are offered in the open market
Employee stock option plans are one of the stock ownership plans. The condition for availing such plans is usually the length of the service of the employees. The benefit is recorded as an employee compensation.
In the context of big organizations with innumerable employees, employees may not be able to identify themselves as significant and may consider those with major chunk of shareholdings as the ones whose actions affect the stock price.
This being merely an illusion since collective efforts of all the employees affect the company's stock price.
Answer:
B net income is overstated, assets are overstated, and stockholders' equity is overstated
Explanation:
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
Hence, where ending inventory balance is overstated, cost of goods sold is understated. When cost of goods sold is understated, gross and net incomes are overstated. Hence owner's equity is overstated and asset overstated.
Answer:
No impairment loss would be reported
Explanation:
The computation is shown below;
Impairment loss = carrying value - recoverable amount
Where,
The recoverable amount would be the higher amount of fair market value and value in use
So the recoverable amount would be $2,545,000
Now the impairment loss is
= $2,500,000 - $2,545,000
= -$45,000
Since the impairment loss comes in negative so no impairment would be recorded
Answer: Revenue is maximum at x=25 and y=0. That is when the firm makes only yellow cakes and no strawberry cakes.
Explanation:
x- Number of Yellow cakes
y- Number of Strawberry cakes
Time constrain is given by
Revenue is given by,
At the vertices, revenue is
At (0,0)
TR = $0
At (0,150)
At (225,0)
Therefore, Revenue is maximum at x=25 and y=0. That is when the firm makes only yellow cakes and no strawberry cakes.