Mike and Steve graduate from law school together and open a law practice in Michigan. They are co-owners of the business, share

Response:

The difference in the cost of direct materials per equivalent unit between the two months is $0.70.

Clarification:

First, determine the direct cost per equivalent unit for September

Direct cost per equivalent unit = Total Cost / Total Equivalent units

      = $12,000 / 7,500

      = $1.60

The difference between the two months.

September   =  $1.60

Less August = ($0.90)

Difference      = $0.70

Answer:

The answer is: Social Responsibility.

Explanation:

Corporate Social Responsibility signifies a Code of Conduct and practices that transcend mere legal requirements, regulations, and trade guidelines. This can encompass measures taken by a company for environmentally sustainable operations, social and ethical training for employees, as well as charitable actions and community involvement.

Answer:

Corporate policy

Explanation:

Corporate policy encompasses a framework of procedures and recommendations derived from evaluating both internal and external elements that can aid the organization in managing challenges and preventing negative repercussions.

The company aims to boost workforce productivity, which facilitates cost management by promoting daily exercise among its employees. This approach was not primarily designed for employee welfare but was focused exclusively on enhancing productivity. Thus, this strong emphasis on fitness reflects a component of corporate policy.

Answer:

E. efficiency wages

Explanation:

This situation does not represent discrimination, as Rob has a solid history with the company (15 years). Even though their productivity levels might seem comparable, Rob’s extensive experience warrants the higher compensation.

This exemplifies the efficiency wage hypothesis, which posits that higher salaries can enhance employee productivity. Consequently, this creates an incentive for Rob to remain with the company.

Answer:

a. Nov 11, 2017

Dr Cash $4,900

Cr Sales $4,900

Nov 30, 2017

Dr Warranty Expense $294

Cr Estimated Warranty Liabilities $294

Dec 9, 2017

Dr Estimated Warranty Liabilities $196

Cr Cash $196

Dec 16, 2017

Dr Cash $14,700

Cr Sales $14,700

Dec 29, 2017

Dr Estimated Warranty Liabilities $392

Cr Cash $392

Dec 31, 2017

Dr Warranty Expense $882

Cr Estimated Warranty Liabilities $882

b. Jan 5, 2018

Dr Cash $9,800

Cr Sales $9,800

Jan 17, 2018

Dr Estimated Warranty Liabilities $462

Cr Cash $462

Dec 31, 2018

Dr Warranty Expense $588

Cr Cash $588

Explanation:

a. Preparation of the journal entries to record the transactions and adjustments for 2017

Nov 11, 2017

Dr Cash $4,900

Cr Sales $4,900

(This records the sale of razors for cash)

Nov 30, 2017

Dr Warranty Expense $294

Cr Estimated Warranty Liabilities $294

($4,900*6%)

(This records the warranty expense)

Dec 9, 2017

Dr Estimated Warranty Liabilities $196

Cr Cash $196

(14 razors*14)

(This represents the replacement of 14 razors)

Dec 16, 2017

Dr Cash $14,700

Cr Sales $14,700

(This records the cash sale of razors)

Dec 29, 2017

Dr Estimated Warranty Liabilities $392

Cr Cash $392

(28 razors*14)

(This represents the replacement of 28 razors)

Dec 31, 2017

Dr Warranty Expense $882

Cr Estimated Warranty Liabilities $882

($14,700*6%)

(This records warranty expense)

b. Preparation of journal entries to reflect the transactions and adjustments for 2018

Jan 5, 2018

Dr Cash $9,800

Cr Sales $9,800

(This records razors sold for cash)

Jan 17, 2018

Dr Estimated Warranty Liabilities $462

Cr Cash $462

(33 razors*14)

(This indicates the replacement of 33 razors)

Dec 31, 2018

Dr Warranty Expense $588

Cr Cash

(6%*$9,800) $588

(This indicates the recording of warranty expense)