Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. <u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead. </u>
The v<u>ariable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).</u>
<u>Unit cost under absorption costing:</u>
Unitary product cost= 137 + 75 + 4 + (846,800/14,600)
Unitary product cost= $274
<u>Unit cost under variable costing:</u>
Unitary variable product cost= 137 + 75 + 4
Unitary variable product cost= $216
Answer: In the inelastic portion of the demand curve
Explanation:
The city will charge in the inelastic portion of the demand curve, because in that portion the percentage increase in price will be greater than the percentage decrease in demand. Therefore, the price increase will not only compensate for the decrease in demand but will also allow an increase in income.
Answer:
the depreciation expense on the equipment will be 1,785 for tax purpose.
Explanation:
We will look into the MACRS (Modified Accelerated Cost Recovery System)
table for a property of seven years placen into service in the 4th quarter:
Which give us 3.57%
now we multiply the basis by the coefficient and get the value for depreciation
50,000 x 3.57% = 1,785 depreciation expense under MACRS
Answer:
It could save you alot of money, personally I run my own online business, and I do all the accounting myself instead of hiring someone to do it, although its very time consuming.
Answer:
Dagwood bonds receivables 300,000 debit
Cash 300,000 credit
--to record purchase of bonds--
Interest receivables 18,000 debit
Interest revenue 18,000 credit
--to record accrued interest on dagwood bonds--
Cash 18,000 debit
Interest receivables 18,000 credit
--to record collection of interest--
Explanation:
as the bonds are purchased at par we pay for the same as the face value
interest for the year
principal x rate
300,000 x 6% = 18,000
at December 31th the interest are receivables as we didn't collect the cash yet
Then, on january first, we receive the cash and write-off the receivables
