Answer:
The correct answer is B
Explanation:
The journal entry which is to be recorded for the service revenue at the end of May is as follows:
Unearned Revenue A/c..............Dr $5,333
Service RevenueA/c...........Cr $5,333.
Working Note:
Revenue = Total amount × Number of months / Total months
where
Amount is $8,000
Number of months means at the end of May which is a 2nd month
Total months is 3 months (April, May and June)
= $8,000 × 2 / 3
= $5,333
Answer:
The Parts Division of Nydron Corporation
The Transfer Price for this transaction would lie between $16.85 and $17.00.
Relevant costs of making Part Y6P per unit is computed as the variable or marginal costs:
Sales Price to outside companies = $17
Buying Price from outside supplier = $16.85
Marginal Costs:
Direct Materials $7
Direct Labor $3
Var. Mfg O/H $4.50
Total Variable = $14.50
Fixed Costs = $1.20
Total costs = $15.20
Explanation:
This is a Transfer Price decision, in a buy or make situation. In making such decision, management of Nydron Corporation should concentrate on the relevant costs and the lowest and higher transfer prices. The costs that are relevant in this decision are those that can be avoided, called avoidable costs. They make the difference in making choices.
Since the relevant costs equal $14.50 (without the fixed cost of $1.20, which must be incurred irrespective of the decision taken) and the part can be sold for $17.00 to outside buyers, the transfer price would lie within the relevant manufacturing cost and the outside selling price. However, since the part can be bought from outside at $16.85, this becomes the lowest transfer price and $17.00 the highest transfer price.
Transfer price is the price that a division can sell its products or services to another division of the company and between subsidiaries and parent companies. Transfer pricing is an accounting and taxation practice that enables prices to be set for transactions done internally within businesses and between subsidiaries that operate under common control or ownership. The transfer pricing practice extends to cross-border transactions as well as domestic ones, and have taxation implications.
Out of the choices given, the theory of macroeconomics dominated the Reagan administration is supply side economics. Supply side economics is when the consumer benefit from a lower price for a better supply of goods.
Answer:
812.40 units
Explanation:
Given that,
Annual holding cost percentage = 20%
Ordering cost = $110 per order
Annual demand = 15,000 units
Units Ordered - Price Per Unit
1-250 - $30.00
251-500 - $28.00
501-750 - $26.00
751 and up - $25.00
Optimal order quantity:
= 
= 
= 
= 812.40
Therefore, the optimal order quantity is 812.40 units.
The answer is (b) Greater,Rise ,toward
Explanation:
Refer to Exhibit 3-17. At a price of $16, the quantity demanded of good X is <u>Greater </u>than the quantity supplied of good X, and economists would use this information to predict that the price of good X would soon <u>Rise</u> .This would push the price <u>Toward</u> the equilibrium price
The law of Demand states that the price and the supply of the product are inversely related (i.e . ceteris Paribus).
Also an increase in the number of buyers of a particular product leads to a shift in the demand curve towards the right side
