Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your interim calculations. Round your cost per unit answers to 2 decimal places. Omit the "$" sign in your response.) Reported Income Statement (1,600 units) Manufacturing Variance Marketing and Administrative Variance Sales Price variance (b) Flexible Budget (a units) Sales Activity
28. If a company uses the periodic inventory system, what is the impact on net income of including goods in transit f.o.b. shipping point in purchases, but not ending inventory? a. Overstate net income.
Judgement Case 9-1 – Inventory costs; lower of cost or market; retail inventory method Requirement 1 Theoretically, Hudson should account for the warehousing costs related to its wholesale inventories as a part of inventory. All of the necessary costs associated with preparing, and in this case storing, items for sale are to be included in inventory. The key here is that the warehousing cost is related to a particular set of items and for that reason it is important to account for the warehousing cost with the inventory in order to satisfy the matching principle. The matching principle “requires that revenues and any related expenses be recognized together in the same period” (The matching principle). By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold.
Define the price elasticity of demand and show how it is calculated. Answer: The units-free measure of the responsiveness of the quantity demanded of a good to a change in it s price when all other influences on buying plans remain the same. 3. What is the total revenue test? Explain how it works.
manuf cost 250000 6) Kingdom Leasing, Inc. Incurred costs of $6500 in negotiating and closing the lease. There are no uncertainties regarding additional costs yet to be incurred and the collectibility of the lease payments is reasonably predictable. lease neg 6500 Required: PV res value 11566.2 a) Determine what type of lease this would be for the lessor and calculate the following: (show all work) $238,434 Lease Receivable Sales Price Cost of Sales b) Prepare Kingdom's amortization schedule for the lease terms. c) Prepare all the journal entries for Kingdom for 2012.
B. should always be equal to net realizable value less a normal profit margin. C. should always be equal to net realizable value. D. is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin. 16) The retail inventory method is based on the assumption that the A. ratio of cost to retail changes at a constant rate. B. proportions of markups and markdowns to selling price are the same.
This statement is true for: 29 What method of inventory valuation should be used for economic decision-making problems? 30 ____ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem. 31 If TC = 321 + 55Q - 5Q2, then average total cost at Q = 10 is: 32 According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: MIDTERM QUIZ 2 The different methods by which the sellers inform their potential buyers about the product is called: knowledge
This statement is true for: 29 What method of inventory valuation should be used for economic decision-making problems? 30 ____ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem. 31 If TC = 321 + 55Q - 5Q2, then average total cost at Q = 10 is: 32 According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: MIDTERM QUIZ 2 The different methods by which the sellers inform their potential buyers about the product is called: knowledge
1. What are the essential differences between endowments, final-salary definedbenefit (DB) pensions plans, and cash-balance (CB) pension plans? A Cash Balance plan is a defined benefit plan that specifies both the contribution to be counted to each participant and the investment earnings to be counted based on those contributions. Each participant has an account that resembles those in a 401(k) or profit sharing plan. They are based on two ways: 1) The company contribution – a percentage of pay or a flat dollar amount – determined by a specified formula 2) An annual interest credit.
The FIFO method is commonly used to calculate the value of the cost of goods sold during a period and of inventory on hand at the end of a period. FIFO method assumes that newer inventory remains unsold while inventory manufactured or purchased first are sold first. Therefore, the newer inventory is assigned to ending inventory and cost of older inventory is assigned to cost of goods sold. The actual run of inventory may not exactly match the first-in, first-out outline. Here is an example of how FIFO works, suppose a purchase was made for 200 units at a price of $5 per unit and another 300 units at a price of $10 per unit.