Identify the type of costs that would be considered incremental cost for a decision to close stores. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Answers
The incremental costs that can be deduced include the cost for materials, overhead, and labor that are associated with the actual closing process.
Incremental cost simply means the total cost that's incurred as a result of an additional unit of product that is being produced.
It's simply calculated by analyzing the additional expenses that were spent by the company. They are the cost for materials, overhead, and labor that are associated with the actual closing process.
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Activity-based Costing—Comprehensive Problem [lo 2] The Riverdale Printing Company prints limited edition art books with production runs of 15,000 to 100,000. It has recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data relate to one product, Art of Design, and the ABC cost pools:
Art of Design:
Annual production 40,000 units
Direct materials $37
Direct labor per unit $8
Manufacturing overhead
cost pools Cost Pool Cost Driver $ 840,000
Materials ordering $840,00 Number of purchase orders
Materials inspection 525,000 Number of receiving reports
Equipment setup 2,500,000 Number of setups
Quality control 1,000,000 Number of inspections
Other 25,000,000 Direct labor cost
Total manufacturing overhead
Annual activity information related to cost drivers:
Cost Pool All Books Art of Design
Materials ordering 120,000 orders 1,200
Materials inspection 2,100receiving reports 315
Equipment setup 125 setups 1
Quality control 5,000 inspections 500
Other $12,500,000 direct labour $320,000
a. Calculate the overhead rate per unit of activity for each of the five cost pools.
b. Calculate the total overhead assigned to the production of the Art of Design. Round to two decimal places.
c. Calculate the overhead cost per unit for the Art of Design.
d. Calculate the total unit cost for the Art of Design.
e. Suppose that Riverdale Printing allocates overhead by a traditional production volume-based method using direct labor dollars as the allocation base and one cost pool. Determine the over- head rate per direct labor dollar and the per unit overhead assigned to the Art of Design. Discuss the difference in cost allocations between the traditional method and the activity-based costing approach.
Answers
Answer:
Instructions are below.
Explanation:
a)
First, we need to calculate the activity rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Materials ordering= 840,000/121,200= $6.93 per order
Materials inspection= 525,000/2,415= $217.39 per report
Equipment setup= 2,500,000/126= $19,841.27 per setup
Quality control= 1,000,000/5,500= $181.82 per inspection
Other= 25,000,000/12,820,000= $1.95 per direct labor dollar
b)
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Materials ordering= 6.93*1,200= 8,316
Materials inspection= 217.39*315= 68,477.85
Equipment setup= 19,841.27*1= 19,841.27
Quality control= 181.82*500= 90,910
Other= 1.95*320,000= 624,000
Total allocated costs= $811,545.12
c)
Unitary overhead= 811,545.12/40,000= $20.30
d)
To calculate the unitary production cost, we need to use the following formula:
Total unitary cost= direct material + direct labor + allocated overhead
Total unitary cost= 37 + 8 + 20.3
Total unitary cost= $65.3
e) Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 29,865,000/12,820,000
Predetermined manufacturing overhead rate= $2.33 per direct labor costs
Allocated MOH= 2.33*320,000= $745,600
Unitary overhead= 745,600/40,000= $18.64
The difference between a plantwide predetermined overhead rate and an activity-based, is that the second one is more accurate. The allocation process is specific and more efficient.
Which of the following statements about striving to reduce labor costs per pair produced at each of the company's production facilities is true? Companies producing branded footwear with an S/Q rating above 5.0 stars are unlikely to achieve labor costs per pair produced that are below the industry average in those geographic regions where they have production facilities Achieving labor productivity of 3,700 pairs per worker at a production facility is nearly always sufficiently high for a company's production labor costs per pair (after rejects) at the facility to be close to the industry-low (as reported on p. 6 of the most recent FIR) Achieving labor costs per pair produced at a particular production facility that are below the region's industry-average (as reported on p. 6 of FIR) requires company managers each year to seek out a combination of base pay increases, incentive payments per non- defective pair produced, total annual compensation, and expenditures for best practices training at the facility that is projected to achieve labor costs per branded pair lower than the_prior year (since worker productivity at each production facility should be trending upward over time). The most cost effective way for a company to achieve low labor costs per pair produced is to give production workers annual base pay increases in the range of 10% to 15% annually in each geographic region where it has production facilities. The simplest and most effective way for a company to achieve labor costs per pair produced that are below the industry average is to compensate production workers at levels that are below the industry average in each geographic region where it has production facilities.
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The subsequent declaration is true: The handiest and the only manner for corporation to obtain hard work prices in step with pair produced which might be under the enterprise common is to compensate manufacturing employees which might be under the enterprise common in geographic location where it has manufacturing facilities.
The required details for Industry averages in given paragraph
Industry averages (of economic ratios) are usually the use of as benchmarks or gear which facilitates commercial enterprise to make comparisons that facilitates to decide its role withinside the enterprise and examine economic overall performance of the commercial enterprise. It is a beneficial device for commercial enterprise managers and investors, facilitates with choice making process. It constitute information figures of diverse commercial enterprise groups throughout unique industries of manufacturing awesome merchandise and services. Some people and groups use enterprise averages as a beneficial gear, it offers a medium degree of all different competition overall performance.[Compare their personal information parent with the ones averages, it may assist character or business enterprise to make choices and predictions approximately viable outcomes.
Such as, Investors examine an business enterprise's economic ratios with enterprise averages to assess whether or not the business enterprise have capability electricity to boom withinside the future, and degree of chance for the investment.
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The subsequent declaration is true: The handiest and the only manner for corporation to obtain hard work prices in step with pair produced which might be under the enterprise common is to compensate manufacturing employees which might be under the enterprise common in geographic location where it has manufacturing facilities.
The required details for Industry averages in given paragraph
Industry averages (of economic ratios) are usually the use of as benchmarks or gear which facilitates commercial enterprise to make comparisons that facilitates to decide its role within side the enterprise and examine economic overall performance of the commercial enterprise. It is a beneficial device for commercial enterprise managers and investors, facilitates with choice making process. It constitute information figures of diverse commercial enterprise groups throughout unique industries of manufacturing awesome merchandise and services. Some people and groups use enterprise averages as a beneficial gear, it offers a medium degree of all different competition overall performance. Compare their personal information parent with the ones averages, it may assist character or business enterprise to make choices and predictions approximately viable outcomes.
Such as, Investors examine an business enterprise's economic ratios with enterprise averages to assess whether or not the business enterprise have capability electricity to boom within side the future, and degree of chance for the investment.
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Market research can help you strategize your _______ and _______ goals.
Primary research is more _______ than secondary research.
Your first marketing priority is to find out if you can _______ your product or services.
The grouping of people for marketing purposes is called _______.
Once you find out what people want, there’s a need to know the _______ for their choices.
Answers
Market research can help you strategize your business and marketing goals.
Primary research is more specific and tailored to your specific needs than secondary research.
Your first marketing priority is to find out if you can sell your product or services.
The grouping of people for marketing purposes is called segmentation.
Once you find out what people want, there's a need to know the motivations for their choices.
Market research plays a critical role in shaping business and marketing strategies by providing valuable insights into customer preferences, market trends, and competitive landscapes. It helps in identifying target markets, understanding customer needs, and developing effective strategies to achieve business and marketing goals.
By conducting research, businesses can gather data and information to inform their decision-making and ensure that their goals are aligned with customer expectations and market opportunities.
Primary research involves gathering firsthand data directly from the source, such as through surveys, interviews, or observations. It is more specific and focused on the unique needs and objectives of a particular study. Secondary research, on the other hand, involves using existing data and information from published sources.
While secondary research provides a broader understanding of a topic, primary research allows for more control and customization of the research process to address specific research objectives.
When launching a new product or service, one of the primary marketing priorities is to determine if there is a demand for it in the market.
Market research helps in assessing the viability and potential success of a product or service by gathering insights on customer preferences, needs, and market conditions. This information enables businesses to make informed decisions about product development, positioning, pricing, and marketing strategies.
Segmentation is the process of grouping individuals with similar characteristics or behaviors into distinct segments for marketing purposes.
By segmenting the market, businesses can target specific groups that are most likely to be interested in their products or services. Market segmentation allows for more personalized and targeted marketing strategies, resulting in better customer engagement and increased marketing effectiveness.
Once businesses identify what people want through market research, it becomes crucial to understand the motivations behind their choices. This involves delving deeper into the underlying reasons, preferences, and factors that drive consumer behavior.
By understanding the motivations behind consumer choices, businesses can tailor their marketing messages, product features, and overall customer experience to better align with customer needs and increase the chances of success in the market.
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How will an increase in variable costs affect the profitability of the business
in the economy?
Answers
Answer: Profitability reduces
Explanation:
Generally, variable costs increase as production increases unlike fixed costs which stay the same regardless of production volume.
If Variable costs were to increase per unit however, that would mean that the business is getting less contribution margin from its products.
The Contribution Margin is the Sales figure - Variable Cost. The higher the contribution margin, the higher the profit because even though the fixed costs will be removed from the contribution margin, they are fixed in nature.
A higher variable cost therefore means a lower Contribution Margin which means lower profitability.
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Have a good day
Production is an example of a marketing activity.
Question 1 options:
True
False
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What is the total number of questions available on the Brainly platform and where can I find them?
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Explain any two (2) value chain activities that Coca-Cola makes use of.
Answers
Coca-Cola employs marketing and sales activities to create brand awareness and optimize their supply chain and manufacturing process to produce and distribute products efficiently.
Coca-Cola, one of the world's leading beverage companies, employs various value chain activities to produce and distribute its products effectively. Here are two examples of value chain activities that Coca-Cola uses
Marketing and Sales: Coca-Cola invests heavily in marketing and sales activities to create brand awareness and promote its products. They use various channels such as TV commercials, billboards, social media, and sponsorship of events to reach their target customers.
Operations: Coca-Cola has a highly efficient supply chain and manufacturing process that helps them produce and distribute their products efficiently. They have established production facilities in various regions worldwide, allowing them to produce and distribute products locally.
Overall, these value chain activities enable Coca-Cola to produce and distribute its products efficiently while maintaining the quality of its products and building brand loyalty among customers.
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What are some environmental advantages of building green? (Site 1)
Answers
By embracing green building practices, society can mitigate the negative environmental impacts of the construction industry and contribute to a more sustainable future.
Building green, or constructing environmentally sustainable buildings, offers several environmental advantages. Here are some key benefits:
Energy Efficiency: Green buildings are designed to minimize energy consumption through the use of energy-efficient appliances, insulation, and lighting systems. This reduces the demand for non-renewable energy sources and lowers greenhouse gas emissions, leading to a reduced carbon footprint.
Water Conservation: Green buildings employ water-saving technologies such as rainwater harvesting systems, low-flow fixtures, and efficient irrigation methods. These measures help conserve water resources and reduce the strain on local water supplies, particularly in regions prone to water scarcity.
Improved Indoor Air Quality: Green buildings prioritize indoor air quality by using low VOC (volatile organic compound) materials, proper ventilation systems, and natural daylighting. This creates healthier and more comfortable indoor environments, reducing the risk of respiratory issues and enhancing occupant well-being.
Waste Reduction and Recycling: Green building practices promote waste reduction and recycling throughout the construction process. Materials with high recycled content are preferred, and construction waste is sorted and recycled whenever possible. This reduces the amount of waste sent to landfills and promotes a more sustainable approach to resource management.
Biodiversity and Habitat Preservation: Green buildings often incorporate features that support biodiversity, such as green roofs, native landscaping, and bird-friendly design elements. These elements provide habitats for local flora and fauna, promote biodiversity, and contribute to the preservation of ecosystems.
Reduced Environmental Impact: The use of sustainable construction materials, such as recycled content materials, sustainably sourced wood, and non-toxic products, helps minimize environmental damage associated with resource extraction and manufacturing processes.
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answer questions 1 through 8 using the following 2016 olympics men's 100 meters event dataset. the dataset consists of data of the fastest 4 athletes in the finals of the event. the first column gives the athlete's name, the second column gives their country, the third column gives the position in which they finished (1 being the fastest to 4 being the slowest), the fourth column gives the color of their jersey and the last column gives the average speed with which the athlete ran during the race.
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The number of theoretical plates is reflected in the geometry of the peaks, with Column 1 having more theoretical plates.
Chromatography column by comparing its height to a hypothetical plate, or plate height H. c. The resolution, which is the ability to discriminate between two signals. This has to do with cinematography's ability to tell apart two peaks. As a result, Column 1 has a greater resolution. d. During chromatography procedures, the relative affinities of the substances for the stationary and mobile phases dictate the rates of migration of the substances. Stronger solutes attracted to the stationary phase are retained in comparison to those more strongly attracted to the mobile phase. As a result, both columns' relative retention is the same.
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define mortgage- backed securities.
Answers
Answer: Mortgage interest is a loan.
Explanation:
You sell accessories. A customer is delighted with an enormous pair of sparkly hoop earrings. She wants to know where it's appropriate to wear them. Based on traditional fashion rules, which of these recommendations should you make?
"Earrings like these work in any situation."
"These will make you memorable at your next job interview."
"Wear them to work so you'll feel great on a Monday morning!"
"They'd be perfect to wear to a nightclub."
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"Earrings like these work in any situation." What recommendations ought you to offer. Customer testimonials and referrals are typically the foundation of the best marketing you can have.
When someone compliments your business, you make sales as a result. On average, a business receives 60 percent of its new customers from recommendations from its existing clientele. A customer is any person or organization that makes a purchase from another firm. Because they provide revenue, customers are essential to businesses because they would not exist otherwise. The use of customer testimonials for a particular business is a part of recommendation marketing
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Joel plans on using a variety of different pen colors while drawing on his slides. What should he do to simplify this process? Select the drawing and change the color in the Format pane. Change the pek's color as needed. Select the Add Pen command and create new pens. Right click the drawing to change the color.
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Select Format Background from the Design tab. Choose Solid Fill and a color from the collection. If you want the same background color on all slides, go to the Design tab and pick Format Background > Apply to All. Try right-clicking My Computer on the desktop and going to Properties>Advanced System Settings.
Click the Settings radio button under "Performance" under the "Advanced" tab and either select a custom scheme or click the button for Adjust for best appearance or Adjust for best performance and click "Apply." On a dark background, use white or light beige; on a light background, use black color. As a result, your slides will appear more professional.
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Which of Congress's powers is implied through the necessary and proper
clause?
OA. The power to restrict child labor
O B. The power to negotiate treaties
O C. The power to print money
OD. The power to declare war
Answers
Answer:
b the power to negotiate treaties
At the beginning of the year, Plummer’s Sports Center bought three used fitness machines from Advantage, Inc. The machines immediately
were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts.
Machine A Machine B Machine C
Amount paid for asset $ 11,000 $ 30,000 $ 8,000
Installation costs 500 1,000 500
Renovation costs prior to use 2,500 1,000 1,500
By the end of the first year, each machine had been operating 4,800 hours.
Required:
1. Compute the cost of each machine.
Total Cost
Machine A
Machine B
Machine C
Required:
2. Prepare one entry to record depreciation expense at the end of year 1, assuming the following:
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Estimates
Machine Life Residual Value Depreciation Method
A 5 years $1,000 Straight-line
B 60,000 hours 2,000 Units-of-production
C 4 years 1,500 Double-declining-balance
Answers
Answer: Please see below
Explanation:
Machine A Machine B Machine C
Amount paid for asset $ 11,000 $ 30,000 $ 8,000
Installation costs 500 1,000 500
Renovation costs prior to use 2,500 1,000 1,500
total cost $14,000 $32,000 $10,000
Machine Life Residual Value Depreciation Method
A 5 years $1,000 Straight-line
B 60,000 hours 2,000 Units-of-production
C 4 years 1,500 Double-declining-balance
for machne A, using Straight line Depreciation
Straight line Depreciation = total cost of asset - residual value /useful life
=14,000-1000/5= $,2,600
for machne b, using units of operation with production time = 4800
units of operation Depreciation= total cost of asset - residual value /useful life x Production time = ((32,000-2000)/60,000) x 4800= $2400
for machne b, using Double-declining-balance
Double-declining-balance depreciation = (cost of asset - accumulated depreciation/ useful life of asset) x 2 =(( $10,000- 0)/4) x2 = $5000
Journal for machine A at end of year 1
Account Debit Credit
depreciation expense $2600
accumulated depreciation $2,600
Journal for machine B at end of year 1
Account Debit Credit
depreciation expense $2400
accumulated depreciation $2,400
Journal for machine C at end of year 1
Account Debit Credit
depreciation expense $5,000
accumulated depreciation $5,000
1. The cost of each machine is computed as follows:
Machine A Machine B Machine C
Cost of machine $14,000 $32,000 $10,000
2. Depreciation Expenses $2,600 $2,400 $4,250
Journal Entries:
Debit Depreciation Expense $9,250
Credit Accumulated Depreciation:
Machine A $2,600
Machine B $2,400
Machine C $4,250
To record depreciation expense for the first year.
Data and Calculations:
Machine A Machine B Machine C
Amount paid for asset $ 11,000 $ 30,000 $ 8,000
Installation costs 500 1,000 500
Renovation costs prior to use 2,500 1,000 1,500
Total recognized costs $14,000 $32,000 $10,000
Residual Value $1,000 $2,000 $1,500
Depreciable amount $13,000 $30,000 $8,500
Estimated useful life 5 years 60,000 hours 4 years
Depreciation rate $2,600 $0.50 50% (100/4 x 2)
Depreciation methods S/L Production units Double-declining
Depreciation expense, Yr 1 $2,600 $2,400 $4,250 ($8,500 x 50%)
Calculations ($13,000/5) ($30,000/60,000 x 4,800)
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Cleaning and shaping of transaction for aggregation is an aspect of
Answers
Answer:
Cleaning and shaping of transaction for aggregation is an aspect of data preprocessing or data preparation.
Explanation:
Định khoản kế toán các nghiệp vụ phát sinh
1. Khách hàng trả tiền mua hàng chịu từ kỳ trước bằng tiền mặt 10.000
Answers
Answer:
answer is above me
Explanation:
Lisa, a supervisor at a manufacturing facility, suspects that one of her subordinates may be under the influence of drugs or alcohol. Which one of the following, if true, would lead Lisa to this conclusion?
Answers
If Lisa suspects that one of her subordinates is under the influence of drugs or alcohol, she should approach the situation with sensitivity and professionalism.
If Lisa suspects that one of her subordinates may be under the influence of drugs or alcohol, there could be several signs or symptoms that may lead her to this conclusion. One possible indicator is a change in behavior or attitude. For example, if the subordinate has become increasingly moody, agitated, or withdrawn, this could be a sign that they are struggling with substance abuse. Another possible sign could be a decline in job performance, such as missing deadlines, making mistakes, or being frequently absent from work. The subordinate may also exhibit physical symptoms, such as bloodshot eyes, slurred speech, or unsteadiness on their feet. Furthermore, Lisa may observe that the subordinate is experiencing financial problems, as drug and alcohol addiction can be costly and may lead individuals to miss work or spend their money on substances rather than other necessities. Lisa may also notice that the subordinate has become more secretive or defensive, particularly when questioned about their behavior or whereabouts. It is important to gather as much information as possible before making any accusations or taking any disciplinary action. She may also consider seeking guidance from the company's human resources department or employee assistance program to ensure that the subordinate receives the help they need to overcome their addiction.
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A free enterprise system provides individuals the opportunity to make their own economic decisions, without restrictions from the government. It allows the supply and demand of consumers to determine the success or failure of an economic endeavor. As a result, some business owners have become successful, while others have not.
In an essay, you will choose an entrepreneur and argue whether the free enterprise system was necessary for that individual to make an impact on the business world.
Answers
The entrepreneur that is chosen for this argument is Steve Jobs. Steve Jobs was one of the co-founders of Apple, which is now a trillion-dollar company.
The free enterprise system was necessary for Steve Jobs to make an impact on the business world. Steve Jobs did not come from a wealthy background, but he had a passion for technology. The free enterprise system allowed him to start a business without any restrictions from the government.
He was able to create innovative products, such as the iPhone and iPad, and sell them to consumers. The supply and demand of consumers determined the success or failure of his business endeavors. Steve Jobs was able to create a successful company and become a billionaire because of the free enterprise system.
Without the free enterprise system, Steve Jobs may not have been able to start a successful business and make an impact on the business world.
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A financial institution wants to know who is most likely to use their credit card. Which is the best way to segment customers?
Answers
As the financial institution wants to know who is most likely to use their credit card, the best way to segment the customers is by amount of debt. The Option B is correct.
What is a customer segment?In marketing, in order to provide the customers with more relevant experiences, the market segmentation divides them into distinct groups based on shared traits, habits, or interests.
The 4 primary categories of market segmentation includes geographic, psychographic, behavioral, and demographic; however, there are many other tactics you can employ, as well as countless variants on the four primary types.
Missing options "A. By number of credit cards B. By amount of debt C. By credit score D. By amount of savings.
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summarize the closing process by listing the closing entries in the order in which they would occur at the end of the accounting period. step 1: close income statement (credit/debit) balance accounts.step 2: close income statement (credit/debit) balance accounts. step 3: close (income summary/dividends) . step 4: close (income summary/dividends)
Answers
Answer: Credit, Debit, income summery, Dividends
Property that a business uses to secure a loan is
Answers
Answer:
Business loans are usually secured with collateral, which is an asset pledged to the lender by the borrower for the life of the loan. The collateral can be seized and sold to repay the loan if the borrower defaults. Lenders use collateral to reduce the risk of losing money on the loan.
Explanation:
Mary Smith is the owner and operator of smiths costruction. at the end of the company's accounting period, December 31st 2020 Smith's construction has assets totaling $760,000 and liabilities totaling $240,000 use the accounting equation to calculate what Mary's owner Equity would be as of December 31st 2020
Answers
hi I'm from Philippines and you?
what are the basic parts of business letter?
Answers
1. Opening of Business Letter.
2. The heading.
3. The inside address.
4. The salutation.
5. The punctuation mark.
6. Main body.
7. Conclusion.
8. Appropriate way to end it.
9. Signature. (Closing part)
can individual be too motivated? discuss
Answers
Answer:
Yes, an individual can be too motivated. It can negatively affect their personality and perception. They may feel that they have to get things done no matter the cots and they may mistreat people or make poor decisions to accomplish that. Many of them also become arrogant and overconfident.
"Yes," an individual can be too motivated. A complete description is provided below.
Throughout the employment, a person may be erroneously over-motivated. In other words, the motivation or inspiration of an individual might be motivated by circumstances that don't significantly require him to succeed.
The major incentive of a certain individual might have been to impress or satisfy just their authorities.
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supplied goods costing
RS. 600 to mohan and
issued invoice at 10%
above cost and allowed
5% discount.
Answers
Answer:
Dr Mohan account 627
Cr Sales 627
Explanation:
Preparation of Journal entry
If the amount of RS. 600 is the goods costing that was supplied to mohan in which the issued invoice is 10% above cost with a 5% discounts the First step will be to calculate the Invoice price.
Calculation of the invoice price
Invoice price=[600+10%*600)+[5%*(600+10%*600)]
Invoice price=(600+60)-[5%*(600+60)]
Invoice price=660-(5%*660)
Invoice price=660-33
Invoice price=627
Now let prepare the Journal entry
Dr Mohan account 627
Cr Sales 627
(Being to record good sold to Mohan)
A firm with 60% of sales going to variable costs, $1.5 million fixed costs, and $500,000 depreciation and sales of $3 million. How does the current level of sales compare to the accounting break-even sales level
Answers
Answer:
Current sales are $2 million below the break-even level.
Explanation:
Calculation for How does the current level of sales compare to the accounting break-even sales level
First step is to calculate BEP using this formula
BEP= Fixed cost+depeciation/PV Ratio
Let plug in the formula
BEP= ($1.5 million+$0.5 million)/40%
BEP=$2 million/40%
BEP= $5 million
Now let calculate the current sales using this formula
Crrent sales =BEP-Sales
Let plug in the formula
Crrent sales=$5 million-$3 million
Crrent sales=$2 million
Therefore based on the above calculation the
Current sales of the amount of $2 million are below the break-even level.
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $350,000. During 2024, Halifax sold merchandise on account for $12,000,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $474,000 in sales for credit, with $262,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year.
Required:
Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at year end.
What is the amount of the year-end refund liability after the adjusting entry is recorded?
Answers
The entries for the given question will be computed in the following parts as mentioned below:
a) Refunds from actual sales.
Debit Allowance for Sales Returns is $460,000.
$600,000 in credit accounts payable to keep track of real sales returns.
b) Stock replenishment after product returns.
($460,000 x 75% of $460,000) Debit Inventory $345,000.
Credit $345,000 in Cost of Goods Sold Expense to record the return of sales items into inventory.
(c) The year-end adjusting entry for anticipated returns.
(11,700,000 in sales x 4% estimated sales returns) Debit estimated sales returns $468,000.
Credit Allowed for Sales Returns: $468,000.
d) The adjusting entry for the anticipated return of goods to inventory.
Inventory is debited $351,000.
Credit $351,000 Cost of Goods Sold to make an adjustment for the estimated return of inventory valued at $468,000 at 75% of selling price.
e) After the adjusting entry has been made, the amount of the year-end allowance for sales returns:
$320,000 is the initial year's allowance for sales returns.
Addition: $468,00 in year-end adjusting entry for sales returns.
Less: $460,000 in actual sales revenue.
($320,000 + $468,000 - $460,000) = End of year allowance for sales returns of $328,000.
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health insurance is designed to cover
Answers
Explanation:
Sena is going to apply for a loan at a bank. What should sena know about banks and credit before she applies? OA Banks don't offer consumer credit. OB. They may require some form of security for loans OC Banks only offer open end credit, OD. She must be a member of the bank to apply
Answers
Sena should know about banks and credit before she apply that :They may require some form of security for loans.
What are bank loans?The loans granted by banks are made up of deposits from their customers hence must request for collateral as a back up for these deposits.
When people seek loan from banks, usually banks will require some form of security for the loans. These securities serve as collateral incase the borrower is unable to pay back the loan.
Banks request for collateral to do following :
Collateral minimizes the risk for lenders.If a borrower defaults on the loan, the lender can seize the collateral and sell it to recoup its losses.Therefore, Sena should know that bank may require some form of security for loans before she apply for loan.
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