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Sergio039 [100]

4 years ago

10

A company that uses a process cost accounting system maintains separate work-in-process inventory account for each of its manufa

cturing departments.
a. True
b. False

1 answer:

ELEN [110]4 years ago

5 0

The correct answer is: [A]: "TRUE" .
____________________________________________________

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Gail Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under

denis23 [38]

Answer:

a. Under Plan I

No debt.

EPS = Earnings / Number of shares

= 650,000 / 160,000

= $4.06 per share

b. Under Plan II

Debt of $1.4 million.

Interest = 7% * 1.4 million

= $98,000

EPS = (650,000 - 98,000) / 110,000 shares

= $5.02 per share

c. Breakeven point.

What amount of Earnings will equate the two plans.

Assume earnings is e.

e / 160,000 = (e - 98,000) / 110,000

e * 110,000 = 160,000 * (e - 98,000)

110,000e = 160,000e - ‭15,680,000,000‬

160,000e - 110,000e = ‭15,680,000,000‬

e = ‭15,680,000,000‬/50,000

e = $‭313,600‬

5 0

3 years ago

Machinery purchased for $61,800 by Swifty Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of

Anettt [7]

Answer:

Explanation:

Before preparing the journal entry, we need to do some calculations which are shown below:

The computation of the depreciation expense under the straight line method is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($61,800 - $4,120) ÷ (8 years)

= ($57,680) ÷ (8 years)

= $7,210

In this method, the depreciation is same for all the remaining useful life

The net book value would be

= Original cost - depreciation expense × number of years

= $61,800 - $7,210 × 5

= $61,800 - $36,050

= $25,750

Now the accumulated depreciation would be

= (Net book value - salvage value) ÷ number of years

= ($25,750 - $4,635) ÷ 5 years

= $4,223

The journal entry would be

Depreciation expense A/c Dr $4,223

To Accumulated depreciation A/c $4,223

(Being the accumulated depreciation is recorded)

7 0

3 years ago

Question 6 of 22:

shusha [124]

Answer:

Socratic app

Explanation:

it will help you

7 0

2 years ago

a tractor at a cost of "$540,000". The tractor has an estimated salvage value of $60,000 and an estimated life of 8 years, or 12

natulia [17]

Answer:

$60,000

Explanation:

The computation of the depreciation expense using the straight line method is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($540,000 - $60,000) ÷ (8 years)

= ($480,000) ÷ (8 years)

= $60,000

In this method, the depreciation is the same for all the remaining useful life

We simply used the above formula

8 0

4 years ago

Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead wa

Viefleur [7K]

Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead was underapplied during the period.

<h3>What does an unfavorable overhead volume variance mean?</h3>

An unfavorable volume variance indicates that the amount of fixed manufacturing overhead costs applied (or assigned) to the manufacturer's output was less than the budgeted or planned amount of fixed manufacturing overhead costs for the same time period.

Unfavorable variance is an accounting term that describes instances where actual costs are greater than the standard or projected costs. An unfavorable variance can alert management that the company's profit will be less than expected.

To learn more about Unfavorable variance visit the link

brainly.com/question/24064163

#SPJ4

4 0

2 years ago