Answer:
The depreciation expense for year 2 is $13,469
Explanation:
Computing the depreciation expense for year 1 is:
Depreciation expense = Asset cost / Number of useful life
= $110,000 / 7
= $15,714.28
Computing the depreciation expense for year 2 is as:
Asset cost for year 2 = Asset cost - Depreciation expense for year 1
$110,000 - $15,714.28
= $94,285.72
So, depreciation expense would be:
Depreciation expense = Asset cost for year 2 / Number of useful life
= $94,285.72 / 7
= $13,469
Answer:
a. Sansa: 5 daggers per week
Arya: 10 daggers per week
b. Sansa's opportunity cost of making a dagger: 2 shields
Arya's opportunity cost of making a dagger: 3 shields
c. Sansa
d. Arya
Explanation:
a. The maximum number of products made in a week is determined by dividing their weekly time capacity with the time demanded for each piece. So, to determine Sansa's maximum number, just divide 30 hrs / 6 hrs = 5. The same applies for Arya and shields too.
b. The opportunity cost is determined as the missed benefit when Sansa/Arya opts for one product. So, when Sansa chooses to dedicate 6 hours of her working time to make a dagger, she misses the benefits of having 2 shields, as she was able to make 2 shields for the same time frame (6 hours). The same applies for Arya.
c. Comparative advantage is determined by comparing the opportunity costs associated with each product and competitor. Since Sansa's opportunity cost in making daggers is lower than Arya's (2 shields compared to 3 shields), Sansa has a comparative advantage over Arya in making daggers.
d. Absolute advantage is determined as the ability of an individual to produce the same (or greater) number of output than the competitor, given the same time frame. It is evident that Arya has an absolute advantage over Sansa, as she can create more shields and daggers than her in the same time frame (30 hrs).
Answer:
The cost per equivalent unit for materials is $25.76.
Explanation:
As the complete question is not given here, the question is as attached with the solution.
From the data
At the beginning, there are no units.
At the end 1,000 Completed while the total started units are 1400
Remaining units are 1400-1000=400
Now for these 400 units,
As 60% are complete regarding materials thus that is calculated as
400*60%= 400 × .6 = 240
Equivalent units for materials: 1,000 units completed + 60% of 400 (ending) = 1,240 units
$31,944 / 1,240 equivalent units per materials = $25.76
Answer:
Product L= $34
Product H= $34
Explanation:
Giving the following information:
Product H is expected to sell 40,000 units next year and Product L is expected to sell 8,000 units.
A unit of either product requires 0.4 direct labor-hours.
Estimated overhead= $1,632,000. R
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 1,632,000/(48,000*0.4)
Estimated manufacturing overhead rate= $85 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product L= 85*0.4= $34
Product H= 85*0.4= $34
Answer:
$1,420
Explanation:
Cash account is normally a debit balance (as an asset) and debit entries represent a receipt of cash (an increase) while credit entries represent an outflow (a reduction) of cash.
The cash balance is as such the net between the debit balances and the credit entries posted.
The Cash account has a balance of
= $3540 - $2120
= $1,420
