Answer: customer is required to buy one product only if the customer also buys a second product
Explanation:
Tying sales is a market practice designed to increase sales volume. A "tying sales" situation is said to occur when a customer is required to buy one product only if the customer also buys a second product.
Tying sales is simply defined as a scenario whereby the purchase of a good or service is compulsory when one buys a different good or service. This meane the individual helps us buying two products.
1. You recently inherited some property between a wealthy neighborhood and a fairly poor neighborhood. You have constructed a building on the land and are preparing to open an upscale convenience store (which is allowed under zoning laws). Because your location, you believe that the wealthy neighbors will pay a premium for convenience as your store will be the only store in the area. Further, you believe that the residents of the poorer neighborhood will pay the higher prices because the only other convenience store in the area is farther into the poorer neighborhood which has a reputation for being dangerous. As you plan for your convenience store opening, how do you decide whether to charge higher prices than at other convenience stores in the general area
Answer:
Pricing is a very important component of Marketing. Marketing is essential for business performance.
The first objective of pricing is to ensure that the business is profitable.
The second is to ensure that one does not under price or over price. In order words, one would like to ensure that they get the best value possible for their products and or services.
A major factor for consideration when setting prices is the existence and behaviour of the competition and those of the customers.
According to the question, the convenience store will be the only one situated in the wealthy neighbourhood and those who are poor will not mind paying higher prices as the only other store which is the poorer neighbourhood is dangerous.
The challenge here is this, if the prices become too high for the poor residents to pay, they will start to think outside the box. They will opt for a solution(s) that will help them resolve the dilemma of having to choose between danger and having to spend so much at the new convenience store.
Their solutions could be to contribute some money to purchase a store at a safe location, where they can set up a business that will serve the community (both wealthy and rich) at reasonable prices.
Therefore, the best option is to ensure that the prices are just okay as an incentive for the poor to commute all the way to the new store rather than the one that has little or no security. The opportunity cost lost in terms of profit that would have been made is the cost to the company for ensuring that competition does not arise in the nearest future.
The consideration for whether or not the rich will pay is already attended to. Given that the wealthy don't have a convenience store within reach, this store most likely will be welcome as a relief to those who had to travel outside of their locality to do their shopping.
Cheers!
All of the following statements regarding FICA taxes are true except:_________.
a. FICA taxes are deducted from the employee.
b. Employers must pay withheld FICA taxes to the IRS.
c. The amount of FICA deducted from the employee is credited to a liability account.
d. A self-employed person is exempt from FICA taxes.
e. An employer must pay FICA taxes equal to the amount withheld from the employee.
Answer: d. A self-employed person is exempt from FICA taxes
Explanation:
The Federal Insurance Contributions Act is a federal payroll contribution in the United States that is paid by every employers and employees and employers in order to fund Medicare and the Social Security.
All of the following statements regarding FICA taxes are true except self-employed person is exempt from FICA taxes.
is the amount a business earns after deducting what it spends for salaries and other expenses.
Answer:
After deducting the expenses for salaries and other expenses like rent, the money you have left is the amount of money that you actually earned.
Suppose the Federal Reserve (Fed) decides the current money supply of $2.1 trillion is too low, and that an increase of $400 billion is necessary. What tool can the Fed use to accomplish this increase? Assume the current reserve ratio is 0.1 a. Sell govenment securities b. Buy govemment securities c. Increase the reserve ratio d. Increase the interest paid on bank reserves
Answer:
b. Buy government securities
Explanation:
By buying government securities, the FED will engage in an expansionary monetary policy that should increase the money supply to its desired level. Theoretically, since the reserve ratio is 10%, the money multiplier is 1/10% = 10, so the increase in the money supply should be accomplished by purchasing $40 billion in securities.
This can also be done by lowering the reserve ratio.
Define the principles that govern the conversation process, and mention five examples if you are not apply these principles
The correct answer to this question is the following.
The principles that govern the conversation process are the following.
First, there is an opening. In this first part of the conversation process is when we greet the other person with a simple "Hello," "How is it going?"
The second part is called the Feedforeard, in which we try to make an introduction of the conversation with general statements or questions such as "Nice weather, ha?" or "I really wanted to meet you."
The third part is the Business part, in which we go straight forward to the reason for our conversation. We state our arguments, the purpose of the talking, what we need from the other person, and so on. The fourth part is the Feedback process, in which we listen to the arguments of the other individual, and make clarifications. The firth part is the Closing, in which, we thank for the conversation and casually or formally, we say goodby to the other person.
If part of an assembly for automobiles is automated, then demand for automobile workers will _______________ .
Answer:
Demand for automobile workers will fall.
Explanation:
Companies are always looking for ways to reduce costs in the production profits, in order to raise revenue and profit.
Workers are form of factor of production known as labor, while machines, which make automation posssible, are another form of factor of production, known as capital.
If employing machines to automate the production process becomes cheaper than hiring workers, then, the firm will use more machines and hire less workers. This is simply because using machines is cheaper, and will likely raise profits.
"Finn Company reported assets of $1,000 and stockholders’ equity of $600. What amount will Finn report for liabilities?"
Answer:
Liabilities = $400
Explanation:
The basic accounting equation that is used states that the value of total assets is always equal to the value of the sum of total liabilities and total equity. The we can state the equation as,
Assets = Liabilities + Equity
To calculate the value of liabilities, we input the available value of assets and equity in the equation.
1000 = Liabilities + 600
1000 - 600 = Liabilities
Liabilities = $400
Karen bought her house in 1980 for $78,500. In 2005, it was worth $850,000. What’s the rate of return on Karen’s investment?
Answer:
the rate of return on Karen investment is 10%
Explanation:
Given that
Bought price = P = $78500
Sale price = S =$850,000
Time priod = n = 25 years (1980 to 2005)
Based on the above information
The Rate of return is
= (S ÷ P)^(1 ÷ n) - 1
= ($850,000 ÷ $78,500)^(1 ÷ 25) - 1
= 0.099973
= 10.00%
hence, the rate of return on Karen investment is 10%
We simply applied the above formula
Answer:
he rate of return on Karen investment is 10%. Explanation: Given that. Bought price = P = $78500. Sale price = S =$850,000.
Explanation:
Suppose you were hired as a consultant for a company that wants to penetrate the Comp-XM market. This company wants to pursue a niche cost leader strategy. From last year’s reports, which company would be the strongest competitor? Select: 1Save Answer Digby Chester Andrews Baldwin
Answer:
Option B. Chester Company
Explanation:
The company wants to pursue Niche Cost Leader Strategy. In a Niche cost leader strategy the product is highly differentiated and the cost the company charges to its customer is low as apposed to other competitors. The companies that has highly differentiated product and are new entrants usually use this strategy to win a good share of market size.
The strongest competitor would have lowest price, very stable market share price, high investment in plant and equipment, higher production capacity, lowest return on investment, lowest earnings per dollar sales. etc.
Now we will asses different reports and conclude which competitor will be the strongest competitor for the Niche Cost Leader Strategy company. The analysis is given as under:
Lowest Price: If we look at the Production information, Price Column and take the average price of the products of each company then we can conclude that Chester's price of average product is $20, Baldwin has $24.17 and the rest of the competitors are charging high. This means Chester is charging lowest price.Stable Market Share Price: The vulnerability of share price of Chester is the lowest which stands at $0.45. This means that the stock exchange values the company's share as a stable stock with least vulnerability. (See Stock Market Summary)Lower Return on Asset and Return on Sales: If we analyze the Selected Financial Statistics then we will acknowledge that Chester also has 2nd lowest Return on Assets and Return on sales which shows that the company is charging lower prices to its customers. Baldwin is not appropriate to consider here because the company is incurring losses hence its Return on Assets and Return on Sales can not be considered as good indication.Higher Investment in Plant and equipment: The company has 2nd highest investment in plant and equipment with highest Net Book Value of $148k and Baldwin stands at $178k. Now again the higher investment of Baldwin is financed by debt which costs the company more than Chester. This means Chester would be strongest competitor because the company will have to only bear the depreciation cost which is non cash flow in nature and not the interest cost which Baldwin is bearing. (See Income statement for Interest Cost and Balance sheet for Carrying value of the asset).Production Capacity: Chester has the highest production capacity which means that the company despite its 2nd largest investment in plant and equipment. This means that the plant and machinery of Chester is more innovative which is the reason that the production capacity is higher than other competitors.From the above analysis it seems that Chester is pursuing Niche Cost Leader Market and is the strongest competitor that the company will face. Hence B is the correct option here.
Suppose that the Federal Reserve decides to increase the money supply with a $300 purchases of Treasury bills. Complete the tables that represent the financial position of the Federal Reserve and commercial banks after this open-market operation. Be sure to use a negative sign for reduced values. Assets LiabilitiesFederal reserves $A $B Commercial Banks Assets Liabilities Treasury bills C no change Reserves D
Answer:
FEDERAL RESERVE
Assets=$300 (A)
Liabilities =$300 (B)
COMMERCIAL RESERVE
Assets:
Treasure Bills =$-300 (C)
Reserves=$300
Liabilities
No change
Explanation:
To Complete the tables that represent the financial position of the Federal Reserve and commercial banks
FEDERAL RESERVE
Assets=$300 (A)
Liabilities =$300 (B)
COMMERCIAL RESERVE
Assets:
Treasure Bills =$-300 (C)
Reserves=$300
Liabilities
NO change in liabilities
Therefore the Federal Reserve assets will be TREASURY BILLS While the liabilities for Federal Reserves will be MONETARY BASE
The manager of the manufacturing unit of a company is responsible for the costs of the manufacturing unit. The president is in the process of deciding whether to evaluate the manager of the manufacturing unit by the average cost per unit or the variable cost per unit. Quality and timely delivery would be used in conjunction with the cost measure to reward the manager.
a. What problems are associated with using the average cost per unit as a performance measure?
b. What problems are associated with using the variable cost per unit as a performance measure?
Answer:
AC Problems : Incurred even at 0 output level, much varying & deviant from cash flows
VC Problems : Doesn't include fixed cost, incomplete expenditure, incomplete financial (accounting) statements.
Explanation:
Average Cost is the cost per unit off output.
Problems with AC as a performance measure :
It includes all (fixed & variable cost) average. So, including fixed cost, it is not zero even at zero output level. It's variance analysis during production & cost phases is very complicated. It's result are deviant as evident from cash flows.Variable Cost is the cost incurred on variable factors of production.
Problems with VC as a performance measure :
It doesn't include fixed cost. So, it is not a correct measure of complete total expenditure. Fixed costs are huge. No financial inclusion of them makes accounting information unreliable (for legal purposes)What is a captive market, and why is nutrition an important consideration for a captive market?
Answer:
Nutrition should be considered because it is important to attract nutrition minded individuals. A captive market is when a restaurant a clientele that must use their services and when they have no choice but to eat there nutritious choices must be available
Captive market are those market where the potential consumer has to face a limited number of competitive suppliers. Nutrition is an important consideration for a captive market due to the limited number of suppliers in the market.
What is a Captive market?Captive market refers to the market when there is a limited number of competitive suppliers due to which the potential customers have their only choices to purchase what is available or to make no purchase at all.
It is market structure where the suppliers has monoply as there is limited number of suppliers and consumers are obliged through lack of choice to buy a particular product. The major examples of the captive market are the food shops in the cinemas, airports, colleges etc.
Basically, captive market provides very less choice to the customers.
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Nicholas Industries can issue a 20-year bond with a 6% annual coupon. This bond is not convertible, is not callable, and has no sinking fund. Alternatively, Nicholas could issue a 20-year bond that is convertible into common equity, may be called, and has a sinking fund. Which of the following most accurately describes the coupon rate that Nicholas would have to pay on the convertible, callable bond?
a. It could be less than, equal to, or greater than 6%.
b. Greater than 6%.
c. Exactly equal to 8%.
d. Less than 6%.
e. Exactly equal to 6%.
Answer:
a. It could be less than, equal to, or greater than 6%.
Explanation:
The attribute with related to the second bond i.e. converted and the feature of the sinking fund would be disposed off to decrease the required rate of return on the other hand feature of the call increase the required rate of return on the bond. Also it contains the low coupon rate as compared with the bond i.e. not convertible
Hence, the correct option is A.
In an unregulated, competitive market consumer surplus exists because:___________.
1. some sellers are willing to take a lower price than the equilibrium price.
2. some consumers are willing to pay more than the equilibrium price.
3. some sellers will only sell at prices above equilibrium price (or actual price).
4. some consumers are willing to make purchases only if the price is below the actual price.
Answer: some consumers are willing to pay more than the equilibrium price.
Explanation:
Consumer Surplus is simply the difference between the price that is paid by a consumer and the price that the consumer was willing to pay in the first place.
In an unregulated, competitive market consumer surplus exists because some
consumers are willing to pay more than the equilibrium price.
McNight Industries completed the following transactions during 2018:
Journalize the transactions. Explanations are not required. Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.)
Nov. 1: Made sales of $52,000. McNight estimates that warranty expense is 6% of sales. (Record only the warranty expense.)
McNight estimates that warranty expense is 6% of sales. (Record only the warranty expense.)
20 Paid $1,600 to satisfy warranty claims.
31 Estimated vacation benefits expense to be $6,000.
31 McNight expected to pay its employees a 3% bonus on net income after deducting the bonus.
Net income for the year is $52,000. Dec.
Answer:
Journal Entries
Date Accounts Titles Debit Credit
Nov 1 Warranty expense $3,120
($52,000 * 6%)
Estimated warranty payable $3,120
Nov 20 Estimated warranty payable $1,600
Cash $1,600
Dec 31 Vacation benefit expense $6,000
Vacation benefit payable $6,000
Dec 31 Employee bonus expense $1 ,515
Employee bonus payable $1,515
Working
Bonus = 3% * (Net income-Bonus)
Let bonus= x
x = 3% * (52,000 - (1+x))
x = 0.03 * (52,000- (1+x))
x = 1560 - 1.03
1.03x = 1560
x = $1,560 / 1.03
x = $1,514.5631
Bonus= $1,515
"A registered representative ("RR") has entered an order to buy 100 shares of ABC at $50 per share for a customer. The transaction is executed at $50 per share, and when the representative is reporting the trade to the customer, she notices that the account number on the executed order ticket is wrong. Which statement is TRUE?"
Answer: The "RR" may change the account number on the order ticket to the correct number if the branch manager approves in writing
Explanation: According to the scenario described above, the error in the executed order can only be effected based on approval by the branch manager after being notified by the registered representative of the error in the order ticket. The official approval to effect the change in the error made in the account details must be put into writing by the branch Manager for privacy and documentation sake as making such change to an order ticket requires following due process.
A corporation received $550 from a customer as a deposit and the company uses cash basis accounting. The effect of this transaction is to: Group of answer choices
Answer: increase asset
Explanation:
Cash basis accounting is an accounting method that is used to records revenue as at the point that the cash is received. Also, the expenses are recorded when expenses are paid in cash.
From the question, we are informed that a corporation received $550 from a customer as a deposit and the company uses cash basis accounting. The effect of this transaction is to increase assets.
Answer: a. Increase assets
Explanation:
The cash basis of accounting recognises revenues and expenses only when actual cash has been exchanged. As a result, when the customer paid the $550, this amount would be reflected immediately as a cash inflow to the company.
As cash is an asset, when it is received into the company it increases the asset account.
What entry would make to adjust the manufacturing overhead account for overallocated or underallocated overhead?
Answer:
Adjustments
1. Overallocated Manufacturing Overhead:
Debit Manufacturing Overhead
Credit Cost of goods sold
With the amount of overallocated manufacturing overhead.
2. Underallocated Manufacturing Overhead:
Debit Cost of goods sold
Credit Manufacturing Overhead
With the amount of underallocated manufacturing overhead.
Explanation:
When the manufacturing overhead is overallocated, the account has a credit balance. To adjust the entry, the account is debited while the cost of goods sold is credited. This reduces the cost of goods sold by the amount of the overallocation. The opposite takes place with an underallocated overhead. The purpose of the latter is to increase the cost of goods sold to reflect the overhead expense for the period.
Intel reports retained earnings at the end of the current year of $32,598 million and retained earnings at the end of the previous year of $30,091 million. The company reported dividends of $3,940 million and other transactions with shareholders that reduced retained earnings during the current year by $1,806 million. How much net income did the firm report in the current year
Answer:
Net Income = $8253 million
Explanation:
The net income earned by the company has two purposes at the end of the year or is treated in two ways. It is either paid out as dividends or is retained in the company and is transferred to the retained earnings account. Thus, we can say that the closing balance of retained earnings can be calculated as,
Closing Balance of retained earnings:
Closing Balance = Opening Balance + Net Income - Dividends - Payments during the year using retained earnings
32598 = 30091 + Net Income - 3940 - 1806
32598 - 30091 + 3940 + 1806 = Net Income
Net Income = $8253 million
Financing a startup venture’s business model is another key component of entrepreneurial finance. External financing involves various types of capital providers: angel investors, VC investors, creditors, suppliers (for trade credit), etc. These external financiers, together with founders and employees, design various deal structures and financial instruments (e.g., stock options, preferred stocks with various special rights, convertibles, debts with different seniorities and different collateral requirements, etc.) to carve up the venture’s value. What are your thoughts on the value partition issue in a new venture?
Answer:
John as an entrepreneur, and the founder of Johnson Global, requires funding for his new business ventures. He has contacted Paul as an angel investor or the managing director of Paulson Venture Capital Ltd. When Paul invests his money in Johnson Global, he has paid the piper and will invariably dictate the tune. He also decides how the economic value shall be partitioned between the entrepreneur and the investor. Similar scenarios play out with all entrepreneurial financing.
An entrepreneur can fund his or her startup ideas or venture from various sources. She can take bootstrapping, otherwise known as the internal source. She can also take the external financing source. This later source is where business angels, venture capitalists, management buy-outs, and other sources of finance are arranged.
Venture capital and angel investors, suppliers, and employees design various deal structures and financial instruments first to capture where the value lies in a new venture and then decide how the finances are to be raised, when, and from whom. Having assigned an economic valuation to the startup idea, investors also conclude an effective funding contract with the entrepreneur and express their exit strategies.
Putting a value on a new venture is not an easy task. There are many uncertainties concerning development possibilities, and market and industry trends. There are informations gaps to deal with, the presence of soft assets, which are unique and rarely measurable in the marketplace, and associated volatility with market conditions, financial and product markets, and current value and potential profitability issues to be addressed.
Explanation:
Entrepreneurial finance covers the study of value and resource allocation, especially in a new venture. These aspects determine if the entrepreneur will get fresh finances for her ideas. They also determine who gets what from the economic value that will potentially result from the new venture.
In January 2002, the Argentine peso changed in value from Ps1.00/$ to Ps1.40/$, thus, the Argentine peso ___________________ against the U.S. dollar. Question 50 options: stregthened weakened appreciated maintain natural parity
Answer:
Weakened
Explanation:
When initially in January 2002, the rate of exchange was 1 Argentine Peso for 1 U.S. Dollar.
Later on, it is observed that the rate of exchange is 1.40 Argentine Peso for 1 U.S. Dollar.
It is clear that buying capacity of dollar has increased and that of peso has decreased.
Argentine Peso is depreciated by 40% that earlier 1 Dollar = 1 Peso
Now, decreased value = 1.4 Peso - 1 Peso = 0.4 Peso.
Thus, (change in value)/(Actual Initial Value) = 0.4/1 = 40%
Peso has depreciated or weakened by 40%.
Which of the following types of tools is usually recommended for small projects and single users?
a. Low-end
b. Midrange
c. Upper range
d. High-end
Answer:
a. Low-end
Explanation:
Low end tools is usually recommended for small projects and single users. Low end is referred to the lowest priced merchandise in a manufacturer's line. This is good for smaller projects and freelancers. Low-end tools provide basic project management features and generally cost less for each user They are often recommended for small projects and single users.
With any successful hedge, you can avoid the accounting ramifications of a loss on one side by keeping it off the books. you are guaranteed to lose money on one side. you are guaranteed to lose money on one side, but you can avoid the accounting ramifications of a loss on one side by keeping it off the books. none of the options
Answer:
none of the options
Explanation:
Hene in accounting is the situation whereby hedge managers where able to raise capital for a given business venture. The invested money helps in making further money for those hedge companies or its manager.
On June 1, Murphy Company paid $5,400 for one year of advertising in advance. Murphy debited Prepaid Advertising. The advertising expense will be used evenly throughout the year. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on:
Answer:
Expenses = Understated by $3,150
Assets = Overstated by $3,150
Explanation:
When Murphy Company paid for advertising in advance on June 1, the entries will be :
Prepaid Advertising $5,400 (debit)
Cash $5,400 (credit)
By the year end, December 31, 7 months advertising expense would have been expired the entries must be :
Advertising Expense $3,150 (debit)
Prepaid Advertising $3,150 (credit)
Advertising Expense Calculation = $5,400 × 7/12 = $3,150
Thus, if not adjusted the following are the effects :
Expenses = Understated
Assets = Overstated
Which of the follow is not one of the issues complicating the taxation?
The available options are:
A. Taxes raised are used for different government purposes.
B) Sales taxes and policies vary by state and country.
C) Retailers legally only have to charge sales tax if they have operations located in the same state as a consumer.
D) Small online businesses are unable to manage sales taxes to thousands of different jurisdictions.
Answer:
A. Taxes raised are used for different government purposes.
Explanation:
Taxation is a term that simply explained a process in which a tax authority, oftentimes an agency of a government imposes or charges tax.
However, there are several issues complicating the taxation. Considering the available options, these issues are:
1. Sales taxes and policies vary by state and country.
2. Retailers legally only have to charge sales tax if they have operations located in the same state as a consumer.
3. Small online businesses are unable to manage sales taxes to thousands of different jurisdictions.
Hence, the correct answer is option A, which is Taxes raised are used for different government purposes, as it does not affect the issue or process of taxation.
Assume that the required reserve ratio is set at 0.125 . What is the value of the money (deposit) multiplier
Answer:
8
Explanation:
the money multiplier = 1 / required reserve ratio = 1 / 0.125 = 8
The money multiplier refers to the capacity of the banking system to "create" money, e.g. John deposits $1,000 dollars in bank A. Then bank A lends $875 to Frank which buys a bike from Sarah. Then Sarah deposits the $875 in bank B, which in turn borrows $765.63 to Anne. Anne pays her rent to Adam, who deposits the money in bank C and then bank C lends $669.92 to Joe, and ...
Crane Company reported the following on its income statement: Income before income taxes $504000 Income tax expense 153000 Net income $351000 An analysis of the income statement revealed that interest expense was $80000. Crane Company's times interest earned was
Answer:
Crane Company's times interest earned was 6.30 times.
Explanation:
The Times Interest Earned ratio (TIE) shows how well a company covers its interest obligation.
Times Interest Earned ratio (TIE) = Earnings Before Interest and Tax (EBIT) ÷ Interest
= $504,000 ÷ $80,000
= 6.30 times
Assuming a current ratio of 1.2 and an acid-test ratio of 0.80, how will an increase in accounts receivable affect each ratio
Answer:
Increased
Explanation:
The current ratio is calculated by dividing the current assets with the current liabilities. As the receivable is known as a current asset, the increase in receivable will no doubt increase the current asset, and as we all know when the numerator increases the final result also increases. The same case in quick ratio as the receivable increase the numerator will also increase and due to that the final result will also be increased.
If Roten Rooters, Inc., has an equity multiplier of 1.52, total asset turnover of 1.20, and a profit margin of 6.2 percent, what is its ROE
Answer:
11.30%
Explanation:
Roten rooters have an equity multiplier of 1.52
The total assets turnover is 1.20
The profit margin is 6.2%
= 6.2/100
= 0.062
Therefore the ROE can be calculated as follows
= 0.062× 1.52×1.20
= 0.1130×100
= 11.30%
Hence the ROE is 11.30%
Answer:
The answer is 11.31 percent
Explanation:
ROE means Return on Equity. It is a Profitability ratio.
The most common formula for Return on Equity (ROE) is:
Net income / equity.
To calculate the Return on Equity (ROE) for this question, we use dupont formula:
Equity multiplier x total asset turnover x profit margin
= 1.52 x 1.2 x 0.062
0.1131
Expressed as a percentage is:
11.31 percent
The following partially completed T-accounts summarize last year's transactions for Kelshaw Company. At the end of the year, the company closes out the balance in the Manufacturing Overhead account to Cost of Goods Sold.
Raw Materials:
Beg Balance 4,000 (1) 18,000______(2) 20,000
Work in Progress
Beg Balance 8,000 (2) 12,000 (4) 15,000 (6) 28,000_______(7) 50,000
Manufacturing Overhead (2) 8,000 (3) 12,000 (4) 5,000 (4) 5,000______(6) 28,000
Accounts Payable No Debits (1) 18,000 (5) 4,000
Finished Goods
Beg Balance 17,000 (7) 50,000 End Balance: 12,000
Wages and Salaries Payable: No Debits______Beg Balance 6,000 (4) 30,000
Sales Salaries Expense (4) 10,000
Cost of Goods Sold
Accumulated Depreciation (Factory) No Debits______Beg Balance: 90,000 (3) 12,000
1. The indirect labor cost is:_____.
2. The cost of goods manufactured is:_____.
3. The cost of goods sold (after adjustment for underapplied or overapplied overhead) is:_____.
4. The manufacturing overhead applied is:______.
5. The cost of direct materials used is:______.
Answer: 1. The indirect labor cost is:___$5000_.
2. The cost of goods manufactured is:_$50000____.
3. The cost of goods sold (after adjustment for underapplied or overapplied overhead) is:__$180000___.
4. The manufacturing overhead applied is:__$194000____.
5. The cost of direct materials used is:_$52000_____.
Explanation: