Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models Required: 1. Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. In January of this year, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 di

Answers

Answer 1

Answer:

Results are below.

Explanation:

First, we need to calculate the plantwide predetermine manufacturing overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

total estimated overhead costs for the period= (625,000 + 900,000 + 105,000 + 175,000 + 300,000 + 75,000)

total estimated overhead costs for the period= $2,180,000

Predetermined manufacturing overhead rate= 2,180,000 / 125,000

Predetermined manufacturing overhead rate= $17.44 per direct labor hour

Now, we can allocate overhead to each product line:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Deluxe:

Allocated MOH= 17.44*2,500

Allocated MOH= $43,600

Basic:

Allocated MOH= 17.44*6,000

Allocated MOH= $104,640


Related Questions

By promoting transparency, the government can improve

a.profit margins
b.economies of scale
c.market efficiency
d.zoning

Answers

Answer:

Option c. is correct

Explanation:

By promoting transparency, the government can improve market efficiency.

The government should be transparent as transparency will also strengthen the democracy and effectiveness in Government. Openness provides information to the citizens about what their Government is doing for them.

Option c. is correct

Using the appropriate tool from the Accountant Tools menu, which 4 of the following can be batch reclassified in QuickBooks Online Accountant?
Classes
Customers
Products and Services
Locations
Tax Code

Answers

The Batch Reclassify Transactions tool in QuickBooks Online Accountant provides a streamlined and efficient way to reclassify these four items.

In QuickBooks Online Accountant, the "Batch Reclassify Transactions" tool can be used to reclassify the following four items:

1. Classes: The Batch Reclassify Transactions tool allows you to reclassify transactions based on their assigned classes. You can select a range of transactions and update the class assignment in bulk, which is useful for correcting any misclassifications or for making changes to your class structure.

2. Customers: With the Batch Reclassify Transactions tool, you can also reclassify transactions based on the customer associated with them. This is helpful when you need to make changes to the customer assignments for a group of transactions, ensuring accurate reporting and tracking of sales and expenses.

3. Products and Services: The Batch Reclassify Transactions tool enables you to reclassify transactions based on the products and services involved. By selecting a range of transactions, you can update the product or service assignment in bulk, allowing you to correct any misclassifications or make changes to your product and service categorizations.

4. Tax Code: The Batch Reclassify Transactions tool can be used to reclassify transactions based on their assigned tax codes. This feature is particularly useful when there are changes to tax regulations or when transactions have been mistakenly assigned incorrect tax codes. By selecting the transactions and updating their tax code in bulk, you can ensure accurate tax reporting and compliance.

The Batch Reclassify Transactions tool in QuickBooks Online Accountant provides a streamlined and efficient way to reclassify these four items, helping to maintain accurate financial records and ensure proper reporting and analysis of your business's data.

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In the following table, list five examples of products or services for which you have noticed price changes. Identify the product or service; show whether the price change was an increase or decrease; and identify the reason for the price change. Answers will vary. WRITE A TABLE

Answers

The five examples of products or services for which one notices the price changes includes gas, onions, rice, data service, and call rate.

The breakdown of the products or services mentioned is explained below:

Gas (increase in the price): the price changes due to the War in Russia which resulted in its supply.

Onions (increase in the price): there is an increase in price of onions due to the long season of locust (pest) which destroyed a lot of farm produce.

Rice (increase in the price): the price changes as a result of importation ban on rice and the consequence of the flooding.

Data service (decrease in price): this change is caused by the availability of wifi access which is now killing the idea of data subscription.

Call rate (decrease in price): the change in the price of voice call is as a result of the competition that now exists among the service providers.

The given question is incomplete, the complete question is-

In the following table, list five examples of products or services for which you have noticed price changes. Identify the product or service; show whether the price change was an increase or decrease; and identify the reason for the price change. Answers will vary.

Product or service   Price Increase or Decrease   Reason for price change

Name food                 Did the food price

                                   increase or decrease

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Now that you’ve learned about the many different career roles in the lodging and restaurant industries, maybe you're imagining what a day might be like as a hotel’s front-desk clerk or head of the maintenance department. Or, maybe being an executive chef or restaurant manager is more interesting to you. Now is your chance to step into that role!

For this project, you will be pretending to work in one of the careers in the hospitality & tourism industry through performance art.

Instructions: Select one career from the lodging or restaurant industry you’ve learned about. Plan to act out what working in that career looks like. Feel free to be creative! Then choose from one of the following for your presentation format
CAN YOU TEyP IT PLS

Script and tyep action skit depicting a day in the life of your chosen career. Your assiment must meet the following criteria:


· clearly state what career is being portrayed

· portray at least three specific tasks related to the chosen care

Answers

Assuming you choose to work as a hotel manager, you can conduct research to understand more about the role's responsibilities.

What is a career in the hospitality industry like?

Companies destined to tourist accommodation, such as hotels and inns, must have some central characteristics, such as offering amenities that satisfy the tourist's needs, such as comfort, structure and tourist information.

To be a hotel manager, you will need to coordinate a team always valuing efficiency and quality in customer service, compliance with schedules and work organization, with communication being an essential characteristic for dealing with people of different nationalities that hotels can receive.

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In organizing groups to work on homework together every student is asked to fill out a form listing all other students who they would be willing to work with. If there are 251 students in the class and each student lists exactly 168 other students who they might be willing to work with. For any two students in the class, if student A puts student B on their list, then students B will also have student A on their list.

Required:
Using the Pidgeon Hole show that there must be some group of four students who are work with one another.

Answers

The principle shows that there would be some group of 4 students that are willing to work with one another.

The goal here is to help the students to form homework groups using the Pigeon hole system.

The pigeon hole principleWe have to take a random student A.We have a student B that is in the list of A.

The number of students in A list is 168, this is 167 when we subtract B.

168 students have A in their list. This is 167 when we subtract A.

Total students = 250-1 ( We have to subtract A and B) = 249

249 - 167 = 82 students have B in their list and not A.

167 - 82 = 85, these are the students that have both A and B in their list.

We have a student C who have both A and B in the lis.

Thre are 84 students other than c who have A and B in the list. This is a set called s.

168 students have c in their list. There have to be at least 2 students from  s in this number.

This would leave 166 students other than s.

At least 1 student wants c, a and b in the list.

We conclude that there is one group of 4 who are to work with one another.

What is the pidgeon hole analysis?

In mathematics, this principle states that if objects are in a container, then at least one container is going to have more than one item.

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What types of home products are manufactured in your locality? Write with examples..
please help​

Answers

Explanation:

tell me how I do this question

The kinds of the product apart from food products normally bought by customers for domestic usage could be considered as home products. A further explanation is provided below.

Products such as soap goods, home cleansers, and food packaging things, but not furniture or perhaps even equipment, as well as other similar products, typically not entirely eaten throughout one annum, are much more assurance.The household items using cotton linter encompass healthcare apparel, felt as well as paper of extremely high quality.

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What types of home products are manufactured in your locality? Write with examples..please help

Isabella and Antonio are auto mechanics. Isabella takes 6 hours to replace a clutch and 4 hours to replace a set of brakes. Antonio takes 8 hours to replace a clutch and 6 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage.

Answers

Isabella has an absolute advantage in both clutch replacement and brake replacement due to her ability to complete each task in less time.

- Isabella also has a comparative advantage in both clutch replacement and brake replacement, assuming similar skills and pay rates.

How to determine the whether anyone has an absolute advantage at either task and, for each task

To determine absolute and comparative advantages in this scenario, we need to compare the productivity of Isabella and Antonio in replacing clutches and brakes.

Let's analyze the tasks:

1. Clutch Replacement:

- Isabella takes 6 hours.

- Antonio takes 8 hours.

Based on the time taken, Isabella has an absolute advantage in clutch replacement because she can complete the task in less time than Antonio.

2. Brake Replacement:

- Isabella takes 4 hours.

- Antonio takes 6 hours.

Again, based on the time taken, Isabella has an absolute advantage in brake replacement because she can complete the task in less time than Antonio.

Similar to clutch replacement, if we assume similar skills and pay rates, Isabella would also have a comparative advantage in brake replacement due to her ability to complete the task more quickly.

Comparative advantage is based on a comparison of opportunity costs, and without specific information about the trade-offs involved, we can infer that Isabella's ability to complete both tasks more quickly gives her a comparative advantage in both.

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What would be the average tax rate for a person who paid taxes of $8,016.30 on a taxable income of $63,220? (Enter your answer as a percent rounded to 2 decimal places.)

Answers

Answer: trtrtr

Explanation:rtrrtrr

Administrators
According to the video, what sort of education do Postsecondary Education Administrators need?
a high school diploma
O a college experience without a degree
advanced education
O an orientation

Answers

Answer:

advanced education

Explanation:

just got it right on edge 2020

Answer:

advanced education

Explanation:

hope this helps!

Advantages to free-trade agreements (FTAs) are that they increase trade barriers (both tariff and non-tariff barriers), open up market to exporters, and increase jobs domestically. True orFalse

Answers

Answer:

False

Explanation:

Free trade agreements are economic cooperation deals between two or more countries.  In the agreement, the countries agree to put in measures that will promote trade between them. Free trade agreements are mostly about tariffs and duties that countries impose on each other imports and exports.

The purpose of the free trade agreement is for participating countries to review the tariffs to increase trade among participating countries. In most cases, a free trade agreement resorts to reduced tariffs and duties.

Comparing health insurance policies. Use Worksheet 9.1. Lexi Thomas, a recent college graduate, has decided to accept a job offer from a nonprofit organization. She’ll earn $44,000 a year but will receive no employee health benefits. Lexi estimates that her monthly living expenses will be about $2,000 a month, including rent, food, transportation, and clothing. She has no health problems and expects to remain in good health in the near future.

Using the Internet or other resources, gather information about three health insurance policies that Lexi could purchase on her own. Include at least one HMO. Use Worksheet 9.1 to compare the policies’ features. Should Lexi buy health insurance? Why or why not? Assuming that she does decide to purchase health insurance, which of the three policies would you recommend and why?

Answers

Answer:

um can you egsplain that a bit beter please and then i might be able to help

Explanation:

100 pts
The table identifies how many thousands of units of corn and diamonds the United States and Congo can produce in one week. Use this data to answer the question that follows.


Corn

Diamonds

United States

60

10

Congo

20

5



Which statement is true based on the data table?
The United States should specialize in diamonds and trade for corn.
The United States should specialize in corn and trade for diamonds.
Congo should specialize in corn and trade for diamonds.
Congo should specialize in both corn and in diamonds.

Answers

Answer:

In view of the units of corn and precious stones delivered by the US, the open-door cost of creating corn is B. 10⁄60.

What is the open-door cost of delivering corn?

The open-door cost of delivering corn to the US would be the number of precious stones that are surrendered to make one unit of corn.

This can be found as:

= Units of jewels/Units of corn

= 10/60 jewels

All in all, choice B is right.

Answer:

B) The United States should specialize in corn and trade for diamonds.

Explanation:

I got it right on the test

what answers applies to "fine print"

Answers

Most significant information is typically found in the fine print.

Why is reading the fine print on a credit card application important?

Credit card consumers have consumer safeguards according to the Credit Card Accountability, Responsibility and Disclosure Act of 2009. To understand your rights, fines, transaction costs, and to prevent unpleasant surprises, it's crucial to carefully read your agreement, especially the tiny print.

The phrase "fine print" refers to contract terms and conditions, disclosures, or other significant information that is included in footnotes or a supplemental document and is not presented in the main body of the document.

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What is one key difference between payday loans and title loans? A. Title loans are offered to people with good credit. B. Title loans are long-term loans. C. Title loans require people to have a job. D. Title loans require collateral.​

Answers

The one key difference between payday loans and title loans is D. Title loans require collateral.​

What is a Title Loan?

This is a type of loan which makes use of the borrower's car as a collateral to give a high cost and short term loan.

Hence, we can note that while a payday loan is immediately deducted from the next payslip with a fee, a title loan is high cost and short term and  typically requires collateral.

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Answer:

D. Title loans require collateral.​

Explanation:

Company A has 800 employees, and it decides to grant each of the employees 50 share options as part of its new rewards plan. The options are exercisable over 5 years and subject to a 3-year service condition. The fair value of each option at the grant date is $16. The company estimates that 80% of its employees will meet the service condition required for receiving the options. Calculate the total share-based payment expense for Company A assuming that 80% of the employees actually meet the service condition.

Answers

The total share-based payment expense for Company A is mathematically given as

TS= $512,000.

What is the total share-based payment a expense for Company A?

let number of Employees satisfying service condition be x

Hence

x= 800* 0.8

x=640.

let the total No of options Estimated to be exercised be y

y= 640*50

y=32000.

Generally, the equation for  Total Share is mathematically given as

TS= The total  number of options expected to be exercised Muiltiplied by  Fair value

Therefore

TS= 32000* 16

TS= 512,000.

In conclusion,  the total share-based payment expense for Company A

TS= $512,000.

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I need help on the first question , it's asking more or less​

I need help on the first question , it's asking more or less

Answers

Answer:

more

Explanation:

As the economy increases, the need for property rights also increases, it's pretty widely accepted that property rights provide incentives to participate in the market.

1. Some businesspeople believe that elimination agents and wholesalers reduce their operating expenses. Discuss the opportunity costs associated with eliminating intermediaries.

Answers

1. While eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.

Eliminating intermediaries such as elimination agents and wholesalers reduce operating expenses, but it also has associated opportunity costs that businesses need to consider. One of the primary costs is the loss of the expertise and value-added services that intermediaries offer to businesses and customers. Eliminating intermediaries may result in businesses taking on additional responsibilities and expenses such as marketing, distribution, and logistics.

This may result in the need for additional staff and resources to ensure that products reach customers on time. Furthermore, eliminating intermediaries may also result in reduced customer access to products, as intermediaries are often responsible for finding new markets and customer segments. In this case, businesses may need to invest additional resources to market and promote their products to reach new customers.

In conclusion, while eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.

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businesses use organisational structure which is based around project but employee stay in their department​

Answers

An organizational structure based around projects while employees remain in their departments combines the advantages of functional specialization and project-oriented collaboration

Businesses that adopt an organizational structure based around projects while keeping employees in their respective departments often follow a matrix or hybrid organizational structure. This approach allows organizations to leverage the benefits of both functional departments and project teams.

In this structure, employees are grouped into functional departments based on their areas of expertise or skills. These departments, such as finance, marketing, human resources, and operations, provide specialized support and resources to various projects within the organization. Each department is typically led by a department head or manager responsible for overseeing the department's operations and ensuring the delivery of functional objectives.

On the other hand, project teams are formed to address specific business objectives or initiatives. These teams are comprised of individuals from different departments who possess the necessary skills and expertise to achieve project goals. The project teams are usually led by a project manager who is responsible for coordinating activities, managing resources, and ensuring the successful completion of the project within the specified timeline and budget.

By adopting this organizational structure, businesses can maximize efficiency and resource utilization. Employees benefit from the stability and specialization offered by their department, allowing them to develop deep expertise in their functional areas. At the same time, they also have the opportunity to contribute their expertise to cross-functional project teams, enabling them to broaden their skills, collaborate with colleagues from different backgrounds, and gain exposure to diverse projects and challenges.

This structure facilitates better communication and coordination between departments, as project teams act as intermediaries, ensuring that information and resources flow seamlessly between the departments and the projects. Additionally, it encourages a culture of innovation and flexibility, as employees have the opportunity to contribute their unique perspectives and expertise to different projects, fostering a cross-pollination of ideas.

Overall, an organizational structure based around projects while employees remain in their departments combines the advantages of functional specialization and project-oriented collaboration, enabling businesses to efficiently execute projects while maintaining the stability and expertise of functional departments.

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What are the important differences between a "capitalist - free market" economy and a "socialist" economy? Which do you prefer for the U.S. and why?

Use personal examples to show me you understand the two economic types. Use information from the text to show me you have read and understand the concepts explained in the text.

Remember to use at least 2 paragraphs, preferably 3. A paragraph is more than two sentences. Think about this! It's okay to give me more than 3 paragraphs if you enjoy the subject.

Use at least two citations to back up your opinion. THE FIRST citation must be from the textbook NOT THE INTERNET! Show me that you read and understood the textbook. The citation can be simple. Use "quotations" around any quoted or PARAPHRASED information and place a number after the citation in parentheses. (1)

At the bottom of your text place a corresponding citation after the number in parentheses (1) showing the book and page number or URL used for the citation. Cite the textbook First before using the internet for material.

Textbook citations can be simple: (1) Understanding Business ed.13, pg. 101

Use the complete URL if using information from the internet as a secondary source: (2) https://www.forbes.com/sites/forbestechcouncil/2021/07/27/a-lesson-from-japan-real-change-is-emotional/?sh=5beb6dc9338f

Answers

Socialism relies on central planning and limits on private resource ownership, whereas capitalism is based on individual initiative and favors market forces over the intervention of the state. When given free rein, economies usually combine elements from the two systems.

Which is more capitalist or socialist in US economic policy?

In the United States, capitalism has always been the dominant economic system. It is defined as an economic structure in which private parties, as opposed to the state, own and control the labor force, capital assets, and raw materials used in manufacturing.

It has increased access to education, gradually increased the value of labor, and enabled a level of economic mobility that was previously impossible. The ordinary modern person nonetheless has a far superior quality of life than their forebears from earlier times, while working significantly fewer hours and in significantly better surroundings.

Central components of a free market economy, such as private property, unrestricted foreign trade, the free interchange of goods, and the free determination of prices, are present in the social market. In contrast to what happens in a free market economy, the state takes an active role in enforcing regulations.

The labor force, raw materials, and capital goods are under the control of private enterprises in a capitalist economy. The government controls the labor force, the raw materials, and the capital goods in a socialist economy

In the US, capitalism is the dominant economic system. A market economy exists there. People, not the government, own the majority of enterprises in a capitalist society. Businesses in the US choose what products to market.

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What is market environment

Answers

Answer:

The market environment is the combination of external and internal factors that affect a company's ability to establish a relationship with and serve its consumers.

Explanation:

The internal factors relate to the company itself, such as owners, workers, materials, components, etc.

The external factors are divided into macro and micro components. The macro component is the broad environment which includes societal forces that affect society as a whole. The micro component is task-related, which includes factors that influence the production, manufacturing and distribution of a product or service.

help meh plsssssssssssssssssssssss

Answers

Add an attachment first

Surgical procedure charge $2400 patients pays half the total amount

Answers

$1200 :) I hope this helps!!

The heading of every financial statement contains several line items. Identify the correct items from the list below. (Check all that apply.).-The company name -The date or time period the financial

Answers

Statements cover -The type of financial statement (e.g. balance sheet, income statement) -The unit of currency used in the financial statements (e.g. USD, EUR).

What is an income statement?

An income statement, sometimes referred to as a profit and loss statement, is a financial statement that lists the sales, costs, and net income of a firm for a certain time period. An income statement's goal is to demonstrate a company's profitability by presenting its operational results in an understandable and structured way. The income or sales of the business are shown first, followed by the cost of products sold and other operational expenditures. The net income or loss for the period is the difference between revenue and costs. The income statement is a crucial instrument for assessing a company's financial performance and helping investors, creditors, and other stakeholders decide whether to invest, lend money to, or conduct business with the firm.

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If money income increases, which of the following is likely to happen (ceteris paribus)?


A.) Qd increases


B.) Demand for substitute goods increases


C.) Demand for inferior goods increases


D.) Demand for normal goods increases

Answers

An increase in money income increases will therefore cause Demand for normal goods increases

That is to say, For a normal economic goods, an increase or rise in income will make consumers demand and buy a greater quantity of goods.

For better understanding, lets explain the income effect

Income effect is simply known as that change that occurs in consuming of a commodity due to an increase in purchasing power, with relative prices stay fixed.In normal good, an increase in demand of goods as a result of an increase or a rise in consumers' income. That is when waged increases, the demand for normal goods increases and vice versa.

From the above, we can therefore say that the answer An increase in money income increases will therefore cause Demand for normal goods increases

That is to say, For a normal economic goods, an increase or rise in income will make consumers demand and buy a greater quantity of goods, is correct

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Carolina, the accountant for Duke Manufacturing, tells Jacob, who works in customer service for Duke, that that their company's customer satisfaction rating predicts sales revenue in dollars. Carolina's comment indicates that the customer satisfaction rating is

Answers

Answer: A LEADING INDICATOR

Explanation: A leading indicator is an economic factor that changes before the rest of the economy begins to go in a particular direction. It is output oriented and predictive in nature as it helps to predict significany changes in an economy.

Duke Manufacturing company's customer satisfaction rating prediction of sales revenue in dollars is a typical example of a LEADING INDICATOR.

Kenny is concerned that the amount of spam he is receiving is making him less productive at work. He knows that the
FTC is taking steps against spammers, so he begins to forward spam to them at

Answers

Answer:

Sorry, I could not type the answer here directly because it doesn't allow me.

It should be "spam" followed by "at" (the symbol sign) and "uce" plus "." and "gov"

There should be no spaces.

Explanation:

A "spam" refers to an email that you do not want in your inbox. They are mostly intended for commercial purposes–including some emails that are deceptive. There are actually many ways to reduce the amount of spam reaching your email. For example, you could use an email filter or choose a unique email address.

Kenny above wants to report the spam he is receiving, thus, he needs to forward it to the Federal Trade Commission (FTC). They are responsible for helping Kenny clear his inbox from spams.

Nelson is documenting all the steps it takes to recruit, hire, and onboard a new employee. What would be the BEST way to describe these steps?

A) hiring workflow
B) hiring dynamics
C) hiring hierarchy
D) hiring org chart

Answers

The best way to describe these steps for recruiting, hiring, and onboarding a new employee would be through a hiring hierarchy. Option C.

What are the steps for hiring?

First, there must be an assessment of the need for specialized personnel, so that the company can then start a structured recruitment/selection process based on requirements such as the employee's experience and education.

After the recruitment process, it is necessary to follow the steps of formalizing the registration of the new employee through a contract and other legal provisions. Integration is also essential so that the employee can adapt to the rules, team and organizational culture.

Therefore, the process of selecting, hiring and integrating a new employee into the company follows a series of essential steps that must be arranged in a hiring hierarchy, so that the process proceeds as planned.

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name and describe the element of a company's macro.envoirment and give example illustrating why each is important

Answers

The macro environment, in contrast, refers to larger variables that can have an impact on a firm. Demographic, ecological, political, economic, sociocultural, and technical aspects are a few examples of these variables.

What are the importance of macro environment's element?

Macroenvironment analysis is a component of strategic management for businesses, and it enables them to study and identify potential opportunities and risks that can have an impact on their business. The goal is to give management the knowledge they need to make informed operational decisions.

Financial stability and economic prosperity are promoted by favorable macroeconomic circumstances in a nation.

Thus, The macro environment, in contrast, refers to larger variables.

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AssetsLiabilities Net Worth Reserves$60Checkable Deposits$150 Loans100Stock Shares135 Securities25 Property100 Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 12 percent. All figures are in billions of dollars. The maximum amount by which the commercial banking system can expand the supply of money by lending is

Answers

Answer:

ngl is has been a you have a chance of being able and then you might be a little while not to mention the other room

Explanation:

which means alot

Multiple-step income statement and balance sheet The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y7:

Cash $92,000
Retained Earnings $381,000
Accounts Receivable 450,000
Dividends 300,000
Inventory 370,000
Sales 8,925,000
Estimated Returns Inventory 5,000
Cost of Goods Sold 5,620,000
Office Supplies 10,000
Sales Salaries Expense 850,000
Prepaid Insurance 12,000
Advertising Expense 420,000
Office Equipment 220,000
Depreciation Expense—Store Equipment 33,000
Accumulated Depreciation—Office Equipment 58,000
Miscellaneous Selling Expense 18,000
Store Equipment 650,000
Office Salaries Expense 540,000
Accumulated Depreciation—Store Equipment 87,500
Rent Expense 48,000
Accounts Payable 38,500
Insurance Expense 24,000
Customers Refunds Payable 10,000
Depreciation Expense—Office Equipment 10,000
Salaries Payable 4,000
Office Supplies Expense 4,000
Note Payable (final payment due 2034) 140,000
Miscellaneous Administrative Exp. 6,000
Common Stock 50,000
Interest Expense 12,000

Required:
a. Prepare a multiple-step income statement.
b. Prepare a retained earnings statement.

Answers

Answer:

Net Profit     1345,000

Retained Earnings  $ 1426,000

Explanation:

The multi step income statement  shows the sections of the income statement separately such as the operating expenses and non operating expenses .

Kanpur Co.

Multi step Income Statement

For year ended June 30, 20Y7:

Sales 8,925,000

Cost of Goods Sold 5,620,000

Estimated Returns Inventory (5,000)

Adjusted Cost OF Goods Sold  5,615,000

Gross Profit  $ 3310,000

Less Operating Expenses

Rent Expense 48,000

Selling And Administrative Expenses

Office Supplies Expense 4,000

Sales Salaries Expense 850,000

Miscellaneous Selling Expense 18,000

Depreciation Expense—Store Equipment 33,000

Office Salaries Expense 540,000

Depreciation Expense—Office Equipment 10,000

Advertising Expense 420,000

Miscellaneous Administrative Exp. 6,000

Total Operating Expenses   1881,000

Operating Income                      1381,000

Other Expense

Insurance Expense 24,000

Interest Expense 12,000

Total Non Operating Expenses  36,000

Net Profit     1345,000

Kanpur Co.

Statement of Retained Earnings

For year ended June 30, 20Y7:

Retained Earnings $381,000

Add Net Profits     1345,000

Less Dividends 300,000

Retained Earnings For year ended June 30, 20Y7  $ 1426,000

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