Answer:
$1.86 million
Explanation:
Given the above data, we can calculate the retained earning for next year to be;
Retained earning this year end = $1.5 million retained earning at the beginning + $0.5 million net income - $0.2 million dividends
= $1.8 million
Answer:
C.Accounting Identity is: Assets equivalentLiabilities + Owners' Equity.
Explanation:
In accounting identity all variables must balance, if they do not balance according to the equation then there must be an error in formulation, measurement or calculation.
The basic assumption in accounting identity is that the balance sheet must balance. That is assets must be equal to a sum of liabilities and owner's equity.
Asset= Liabilities+ Owners Equity.
This relationship is based on the convention of double entry, for every debit there is an equal credit.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Estimated manufacturing overhead= 960,000
Estimated number of hours= 32,000
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 960,000/32,000= $30 per direct labor hour
Now, we can allocate to each unit of Planter:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 30*2= $60
Answer:
The firm's output prices will increase, because will the firm can quickly adjusts the prices of goods to the new price level of 110, it will not have to do so with wages, since wages are fixed by a year contract.
This will result in comparatively lower labor costs with higher prices at the same time, which will likely result in more economic and accounting profit for the firm.
The opposite effect will be felt by workers, whose wage is not keeping up with inflation, meaning that their income is losing purchasing power.
