Answer:
B. Cost of goods sold will be too low by $5,000.
Explanation:
Given that
Ending inventory overstated in the current year by $5,000
And, the net income is incorrectly reported $100,000
So, due to this error
The cost of goods sold is understated by $5,000
And, the net income is overstated by $5,000
Since the cost of goods sold is understated by $5,000 so it would be too low due to which the net income overstated by $5,000
Answer:
firstly; the area to start with. find out more about the place. Their income and the rate at which goods are sold there.
A) Direct labor hrs for car wheels = estimated wheels *direct labor per wheel
40,000 *1hr = 40,000
Direct labor hrs for Truck
10,000 * 3hr= 30,000
total direct labor hrs 40,000+30,000 = 70,000 hrs
Overhead rate is total est oh cost/ total direct labor hrs
770,000/70,000= 11.00
B) Car truck wheels 40,000*11 =440,000
Truck wheels 10,000*11=110,000
If Alicia pay per year is $35,256 and there are twelve months in a year, then her monthly salary is $35,256/12 = 2,938.
This means that Alicia earns $2, 938 each month.
Conventionally, there are four weeks in a month, thus, Alicia earns $2,938/4 = 734.50. This means that, Alicia earns $734. 50 each week and this is the amount that Alicia is expected to spend on rent on a monthly basis.
The net present value of the proposed project is closest to -$80,822.
Since the project saves $80,000 in costs each year, we treat these savings income for the next 4 years. We then calculate the Present value Interest Factor of an annuity using the formula :
PVIF of an annuity = { [ 1 - [ (1+r)⁻ⁿ ] } ÷ r
PVIF of an annuity = { [ 1 - [ (1.09)⁻⁴ ] } ÷ 0.09
PVIF of an annuity = 3.240 (rounded to three decimals)
PV of the cost savings = (3.240*80000) = $2,59,178 (rounded to nearest $)
NPV = PV of cost savings - Value of investment
NPV = 2,59,178
- 3,40,000
