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2 years ago

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:

Business

1 answer:

BARSIC [14]2 years ago

8 0

Answer:

Results are below.

Explanation:

Giving the following information:

Sales in Units

April 70,000

May 85,000

June 110,000

July 90,000

Desired ending inventory= 15% of the following month’s sales.

The inventory at the end of March was 10,500 units.

To calculate the production required for each month, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

April:

Sales= 70,000

Desired ending inventory= 85,000*0.15= 12,750

Beginning inventory= (10,500)

Total production= 72,250

May:

Sales= 85,000

Desired ending inventory= 110,000*0.15= 16,500

Beginning inventory= (12,750)

Total production= 88,750

June:

Sales= 110,000

Desired ending inventory= 90,000*0.15= 13,500

Beginning inventory= (16,500)

Total production= 107,000

Total quarter= 268,000

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Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances

denis23 [38]

Answer:

Explanation:

The adjusting entries are shown below:

1. Supplies Expense A/c Dr $3,000 ($2,000 + $4,500 - $3,500)

To Supplies A/c $3,000

(Being supplies purchased)

2. Insurance Expense A/c Dr $2,000

To Prepaid Insurance A/c $2,000

(Being prepaid insurance adjusted)

3. Salary expense A/c Dr $16,000

To salary payable A/c $16,000

(Being salary adjusted)

4. Unearned revenue A/c Dr $1,500

To Service revenue A/c $1,500

(Being unearned revenue adjusted)

7 0

2 years ago

Carrie's Car Care receives more than 25% of its total sales revenues from operations outside of the United States. Carrie's woul

Anvisha [2.4K]

Answer:

The answer is: E) None of these.

Explanation:

A foreign national is a person who wasn´t born in the country in which he or she temporarily lives in.

We don´t have enough information to know if Carrie´s Car Care is a wealthy company. Maybe its total sales are just $10,000 a year but they export $2,500.

A multinational corporation usually has branches or subsidiaries. All we know about Carrie´s Car Care is that it makes some money outside the US, but we don´t know how. Maybe they simply export 25% of their products or maybe they are a huge multinational corporation. Not enough information.

The term globalization corporation doesn´t exist. The term corporate globalization refers to very large multinationals that reach all or most of the world´s markets.

6 0

2 years ago

The home electronic store conducts a similar conjoint analysis in another country, where customer preferences are different. In

pochemuha

Answer:

The quality offering.

Explanation:

Conjoint analysis is measure to analyse preference by respondents. The customer preference are different based on their geographical locations. If the home electronics store conducts an analysis and introduces quality offering instead of size offering, will result in maximizing its revenue. Segment A and segment B customers will choose quality offerings and will pay $2,000 for the purchase. This will be 50% of potential customers who will choose home electronics.

8 0

2 years ago

Three years ago, the U.S. dollar/euro exchange was 1.32 USD/EUR. Over the last three years, the price level in the United States

jeyben [28]

Answer:

A. increased, and Eurozone goods are now more expensive to U.S. customers

Explanation:

The exchange rate represents a link between domestic prices and foreign prices, so Three years ago, Price in the Eurozone was:

P1 (US)= 1.32 USD / EUR * P1 (Eurozone)

Now, after three years of inflation, the new prices are

P2 (US)= 1.18* P1 (US)

P2 (EUROZONE) = 1.12 *P1 (EUROZONE)

So, if we replace in the equation =

P2 (US)/1.18 = 1.32 * P2 ( EUROZONE)/1.12

P2 (US) = (1.32 * 1.18)/1.12 *P2 (EUROZONE)

P2 (US) = 1.39 P2 (EUROZONE)

As we can see, the teorical exchange rate should be 1.39 but we have a REAL exchange rate of 1.4, which is greater, the prices are now more expensive to US customers

6 0

2 years ago

W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 re

andre [41]

Answer:

a. Statement of cost of goods manufactured.

$ $

Beginning work-in-process inventory 13,040

Raw Materials :

Beginning materials inventory 46,800

Add Purchases of raw materials 320,000

Available for Production 366,800

Ending materials inventory (66,800) 300,000

Direct labor 200,000

Indirect labor 40,000

Rent, factory building 42,000

Depreciation, factory equipment 60,000

Utilities, factory 11,900

Ending work-in-process inventory (14,940)

Cost of goods manufactured 652,000

b. Average cost of producing one unit of product in the year.

Average cost = Total Cost ÷ Total units produced

= $652,000 ÷ 4,000

= $163.00

c. Prepare an income statement for external users.

Sales (3,800 × $400) 1,520,000

Less Cost of Goods Sold ($163.00 × 3,800) (619,400)

Gross Profit 900,600

Less Expenses :

Salary, sales supervisor (90,000 )

Commissions, salespersons (180,000 )

General administration (300,000)

Net Income / (Loss) 330,600

Explanation:

Determination of leather recliners sold during the year.

Units Sold = Opening Finished Inventory + Units Produced - Ending Finished Inventory

= 500 + 4,000 - 700

= 3,800

Other Notes :

Include only manufacturing costs in the statement of goods manufactured.

External users would want to see an income statement prepared using an absorption costing system in line with financial reporting standards.

5 0

2 years ago