Answer:
A) Dr. Encumbrances – Office supplies No entry
Cr. Encumbrances outstanding
Explanation:
The journal entry is given below;
For Governmental fund financial statements
Encumbrances-Office Supplies $1,500
To Encumbrances Outstanding $1,500
(Being Office Supplies ordered is recorded)
For Government-wide financial statements
No journal entry is required as under the accrual accounting, no entry should be recorded until the transaction does not arise
Therefore the option a is correct
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Kushman Combines Inc. has $20,000 of ending finished goods inventory as of December 31, 2017. If beginning finished goods inventory was $10,000 and the cost of goods sold was $50,000.
We need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
50,000= 10,000 + cost of goods manufactured - 20,000
50,000 + 20,000 - 10,000= cost of goods manufactured
60,000= cost of goods manufactured
Answer:
A sunk cost is the correct answer to this question.
Explanation:
Sunk cost:- Sunk costs are those expenses that have been accumulated in the past and are thus in some way unrelated to judgment-making.
In the question referred to above, the company has already made $14 to produce. This cost will be inconsequential even if the company makes the units as it is or procedures them further.
As a result, $14 is a sunk expense.
Other options are incorrect because they are not related to the given scenario.
Answer:
Cherry Jalopies, Inc.:
mean = (0.22 + 0.11 - 0.04 + 0.06 + 0.09) / 5 = 0.52 / 5 = 0.104
variance = [(0.22 - 0.104)² + (0.11 - 0.104)² + (-0.04 - 0.104)² + (0.06 - 0.104)² + (0.09 - 0.104)²] / 5 = (0.013456 + 0.000036 + 0.020736 + 0.001936 + 0.000196) / 5 = 0.007272
standard deviation = √0.007272 = 0.085276 = 8.53%
Straw Construction Company:
mean = (0.16 + 0.23 - 0.01 + 0.01 + 0.17) / 5 = 0.56 / 5 = 0.112
variance = [(0.16 - 0.112)² + (0.23 - 0.112)² + (-0.01 - 0.112)² + (0.01 - 0.112)² + (0.17 - 0.112)²] / 5 = (0.002304 + 0.013924 + 0.014884 + 0.010404 + 0.003364) / 5 = 0.008976
standard deviation = √0.008976 = 0.09474 = 9.47%
Calculating average cost of steak initially when only 5000 pounds was produced
Average cost= 50000/5000
AC= 10$
Now when 1 pound is added only 9$ is added in total cost so marginal cost
MC= 9$
From above calculations we can see that AC>MC
so we can say that the average cost of production is greater than marginal cost so it will be beneficial to produce more
