Answer: a. Only I
Explanation:
In a sell or process further decision, the only cost that is relevant is the variable production cost that is incurred after split-off.
It should be noted that a split-off is when the parent company of an organization uses specified terms to divests its business unit
Answer:
$1,291
Explanation:
The computation is shown below:
Per day allocation = $1,475 ÷ 360 days = 4.0972
Now the days of the seller is counted from January to October month i.e
= 10 months × 30 days
= 300 days
And, add the 15 days of November, so the total number of days is 315 days
So, the seller portion of the tax is
= 315 days × 4.0972
= $1,291
The calendar year started from January month and we take the same for the above calculation
Answer:
Dr. Office Supplies Expense $900
Cr. Office supplies $900
Explanation:
At the end of the period office supplies account requires an adjusting entry of the office supplies used during the period. It can be calculated as follow
Ending balance of Office supplies = Beginning balance of Office supplies + Purchases during the period - office supplies expense during the period
$1,200 = $1,100 + $1,000 - office supplies expense during the period
$1,200 = $2,100 - office supplies expense during the period
Office supplies expense during the period = $2,100 - $1,200
Office supplies expense during the period = $900
Journal Entry will be debited to office supplies expense account and credit to office supplies inventory account, which will increase the expenses and decrease the inventory.
Answer:
A) 100
Explanation:
total sales 3,600 units
cost per unit $200
cost of placing order $40
holding cost $20 per year
working days 360 per year
lead time 5 days
If Mark orders 200 units each time, his average inventory ?
daily sales = total sales / working days = 3,600 / 360 = 10 units per day
number of orders per year = 3,600 / 200 = 18
Mark places one order every = 360 days / 18 orders = 20 days
average inventory = (200 units / 20 days) x 10 days = 100
I assume that mark has some type of safety stock that allows him to hold enough inventory to cover for the 5 day lead time.
Answer:
c. Because X's failure to disclose the condition of the faucet is not material.
Explanation:
In order to consider X's failure as material and therefore allowing Y to rescind the contract, the failure to disclose must involve an element of the contract that is in such a bad condition that it would make the contract as "irreparably broken".
In this case, contract law provides other remedies that Y can use to try to make X pay for the repairs, but Y cannot unilaterally rescind the contract.
