Compute the missing amounts. ​(Enter the contribution margin ratio to nearest​ percent, X%.)A B C
Sales price per unit $200 $4,000 $5,220
Variable costs per unit 80 1,000 2,088
Total fixed costs 73,200 660,000 3,758,400
Target profit 266,760 3,000,000 3,132,000
Calculate:
Contribution margin per unit
Contribution margin ratio
Required units to break even
Required sales dollars to break even
Required units to achieve target profit

Answer:

Adjusting Journal Entries:

December 31:

Debit Insurance Expense $2,900

Credit Prepaid Insurance Account $2,900

To record the insurance expense for the year.

Debit Supplies Expense $10,450

Credit Supplies Account $10,450

To record the supplies expense for the year.

Explanation:

a) The whole portion of Prepaid Insurance has expired since payment was made for 6 months on July 1.  This covers the period from July 1 to December 31.

b) The total supplies inventory for the year will be $12,100 ($8,400 + 3,700).  Since the physical count shows $1,650 of supplies available, it means that the difference $10,450 ($12,100 - 1,650) had been used.   This portion is therefore expensed in accordance with the accrual concept.

Final answer:

The necessary adjusting entries for Lopez Company would be debiting Insurance Expenses and crediting Prepaid Insurance. For Zim Company, used supplies would be debited to Supplies Expense and credited to the Supplies account.

Explanation:

The two situations mentioned involve adjusting entries for prepaid and consumed expenses. It is necessary to adjust these periodically to accurately present the financial statements of a company.

In the case of Lopez Company, they paid $2,900 for six months of insurance coverage starting July 1. As it is now December 31, five months of the insurance has been used, with one month still not used (prepaid). Thus, the necessary adjusting entry would be a debit to Insurance Expense of $2,416.67 (5/6 x $2,900) and a credit to Prepaid Insurance of $2,416.67.

For Zim Company, their total supplies for the year is the beginning balance plus additional purchases ($8,400 + $3,700 = $12,100). As of December 31, only $1,650 worth of supplies are still available. This means $10,450 worth of supplies have been used. This would be debited to Supplies Expense and credited to the Supplies account.

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Answer:

The markup percentage is 40%

Explanation:

The computation of the markup percentage is shown below:

Markup percentage is

= Return on investment ÷ Total cost

= ($2,200,000 × 16%) ÷ ($430,000 + $450,000)

= $352,000 ÷ $880,000

= 40%

Hence, the markup percentage is 40%

We simply applied the above formula

And, the same is to be considered

Sales would be ignored in this case

Explanation:

The computation is shown below:

a. The current account balance equal to $44,400

b. The current account balance equal to

Since the company prepaid rent for two years is $44,400 but we have to compute four four months i.e from September 1 to December 31

We assume the books are closed on December 31

So, the current account balance is

= $44,400 - $7,400

= $37,000

The $7,400 is come from

= $44,400 × 4 months ÷ 24 months

= $7,400

c. And, the adjusting entry is

Rent expense A/c Dr $7,400

            To Prepaid rent A/c $7,400

(Being rent expense is recorded)

The question is incomplete. Here is the complete question.

Arden Company reported the following costs and expenses for the most recent month: Direct materials $ 79,000 Direct labor $ 41,000 Manufacturing overhead $ 19,000 Selling expenses $ 22,000 Administrative expenses $ 34,000 Required:

1) What is the total amount of product costs?

2) What is the total amount of period costs?

3) What is the total amount of conversion costs?

4) What is the total amount of prime costs?

Answer:

(1) product cost = $139,000

(2) period cost = $56,000

(3) conversion cost = $60,000

(4) prime cost = $120,000

Explanation:

(1) The total product costs can be calculated as follows.

= Direct material + direct labor + manufacturing overhead

= $79,000 + $41,000 + $19,000

= $139,000

(2) The period cost can be calculated as follows

= selling expenses + administrative expenses

= $22,000 + $34,000

= $56,000

(3) The conversion cost can be calculated as follows

= direct labor + manufacturing overhead

= $41,000 + $19,000

= $60,000

(D) The prime cost can be calculated as follows

= Direct material + direct labor

= $79,000 + $41,000

= $120,000

Corporate limited liability refers to a legal concept that separates the assets and liabilities of a corporation from those of its owners (shareholders). In essence, it means that the personal assets of shareholders are protected from the debts and liabilities of the corporation.

If the corporation incurs losses or is faced with legal claims, the shareholders are generally not personally responsible for covering these losses beyond the extent of their investment in the company. Their liability is limited to the amount they have invested in the form of shares.

This protection encourages individuals to invest in corporations without fear of losing their personal assets in case the company faces financial difficulties or legal issues.

However, it's important to note that limited liability does not shield shareholders from all liabilities; there are exceptions, such as instances of fraud or illegal activities.

Nevertheless, for most business activities, limited liability is a fundamental principle that encourages entrepreneurship and investment in corporate entities while mitigating personal financial risk for shareholders.

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Answer: the extent of the assets of the corporation. Limited liability means that corporate owners (stockholders) and limited partners are responsible for losses only up to the amount they invest. Their other personal property is not at risk.

Explanation: