In states that have unfair trade practice acts, wholesalers and retailers are usually required to mark up merchandise a certain minimum percentage above cost.
Answer the following statement true (T) or false (F)
True
Wholesalers and retailers are usually required to take a certain minimum percentage markup over their merchandise-plus-transportation costs in states that have unfair trade practice acts.
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If beginning inventory is $12,000 and ending inventory is $9,000, the first step in the adjusting process is to credit Merchandise Inventory for $12,000
a. True b. False Indicate whether the statement is true or false
Which of the following organizational structures will be suited for a company that sells business to business products?
A) market-based structure B) product-focused structure C) classic brand structure D) internationally focused structure
Jake Co. has prepared the following fixed budget for the year, assuming production and sales of 30,000 units. This level of production represents 80% of capacity.Jake Co.Fixed BudgetFor Year Ending December 31Sales ………………………………………………?$1,500,000Cost of goods sold:?? Direct materials ………………………………$540,000? Direct labor ……………………………………300,000? Indirect materials (variable) …………………15,000? Indirect labor (variable) ………………………21,000? Depreciation …………………………………180,000? Salaries ………………………………………90,000? Utilities (80% fixed) …………………………54,000?
Maintenance (40% variable) …………………33,0001,233,000Gross profit ………………………………………?$ 267,000Operating expenses:?? Commissions …………………………………$ 45,000? Advertising (fixed) ……………………………60,000? Wages (variable) ………………………………15,000? Rent ……………………………………………30,000? Total operating expenses ……………………? 150,000Income from operations …………………………?$ 117,000Calculate the following flexible budget amounts at the indicated levels of capacity:?Operations at60% of Capacity?Operations at75% of CapacitySales ? Total variable costs ? Total fixed costs ? Income from operations ? What will be an ideal response?
Oceanside Marine Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor
Oceanside uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 2 pound per unit; $12 per pound Direct labor: 2 hours per unit; $16 per hour Oceanside produced 3,000 units during the quarter. At the end of the quarter, an examination of the direct materials records showed that the company used 6,500 pounds of direct materials and actual total materials costs were $99,600. What is the direct materials cost variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) A) $9,960 Unfavorable B) $9,960 Favorable C) $21,580 Unfavorable D) $21,580 Favorable