Answer: B. FIFO method
Explanation: The inventory prices of goods as calculated by a firm will remain the same at year end if a firm's inventory price is automatically updated on account of any additional inventory purchase and also if done on a periodic basis. This will occur only when the inventory pricing system is based on First-in-First-out method, whereby the prices of first inventory purchase is first associated or applied on goods sold until the unit in the inventory is exhausted. This allows prices of goods to move based on period of purchase where older prices gets precedence over the newer inventory purchase.
Answer:
equivalent annual cost: 19,784.81
The investment is not economically justified as it is cheaper to pay the fines than invest in the equipment to avoid them.
Explanation:
We calcualte the PMT of a 75,000 dollars equipment at 10%
PV 75,000
time 5
rate 0.1
C $ 19,784.811
EPA fines: <u> </u><u>$ 18,500.00 </u>
differential: (1, 284.81)
Answer:
Chocolates R' Us, Inc.
Family hostility cannot be used as an argument to void the family attribution rules.
Lucy is still legally married to Desi. What the husband, Desi, therefore, owes, she owes equally despite their separation and her intention to reduce her ownership in their joint company.
Explanation:
Family Attribution Rules: Section 318 of the Internal Revenue Code says an individual shall be considered as owning the stock owned, directly or indirectly, by or for his spouse and his children, grandchildren, and parents, including legally adopted children.
Answer:
33.77%
Explanation:
In one year, you are going to receive ($42 x 100) + ($0.56 x 100) = $4,256
you must return ($35.50 x 50) = $1,775
plus interests = $1,775 x 6% = $106.50
total return = $4,256 - $1,775 - $106.50 = $2,374.50
you invested $1,775
return on your investment = ($2,374.50 / $1,775) - 1 = 33.77%
Answer:
Predetermined manufacturing overhead rate= $42 per direct labor hour
Explanation:
Giving the following information:
Estimated manufacturing overhead= $924,000
Estimated direct labor hours= 22,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 924,000/22,000
Predetermined manufacturing overhead rate= $42 per direct labor hour
