Answer:
$150,000
Explanation:
The computation of value of ending inventory under absorption costing is shown below:-
Total Cost per unit = Direct Material per unit + Direct Labor per unit + Variable Overhead per unit + Fixed Overhead per unit
= $5 + $4 + $3 + ( $200,000 ÷ 25,000 units)
= $5 + $4 + $3 + $8
= $20
Ending Inventory in units = Units produced - Units sold
= 25,000 - 17,500
= 7,500
Cost of Ending Inventory = Total Cost per unit × Ending Inventory units
= $20 × 7,500
= $150,000
So, for computing the cost of ending inventory we simply multiply the total cost per unit with ending inventory units.
Answer:
Dr Cash $208,000
Cr Bonds payable $200,000
Cr Premium on bonds payable $8,000
Explanation:
Preparation of the journal entry to record the sale of these bonds on June 1,
Based on the information given we were told that the company issues the amount of $200,000 at 104 which means the that the journal entry to record the sale of these bonds on June 1 will be:
Dr Cash $208,000
(2,000 × $104)
Cr Bonds payable $200,000
(2,000 × $100)
Cr Premium on bonds payable $8,000
(2,000 ×$4)
Note:-
$200,000/100 =$2,000
Answer:
A. $19,034
Explanation:
The computation of the present value for 20 years cash flow is shown below:
For the First 10 years
Given that
Payment for first 10 years = $2,000
Discount rate = 11%
Now the present value is
= $2000 ÷ 1.11 + $2,000 ÷ 1.11^2 +...........+ $2,000 ÷1.11^10
= 11,778.46402 ..............(1)
For the Next 10 years
Given that
Payment for next 10 years = 3,500
Discount rate = 11%
Now the present value is
= $3,500 ÷ 1.11 + $3,500 ÷ 1.11^2 +...........+ $3,500 ÷ 1.11^10
= 20,612.312
So, today present value is
= $20,612.312 ÷ 1.1110
= 7,259.339 ...........................(2)
Now
Total present value is
= $7,259.339 + $11,778.46402
= $19,034
Answer:
b. do not require customers to enter the service factory.
Explanation:
Possession processing involves tangible services provided on property belonging to a customer. It involves activities like lawn mowing, cleaning services. The property that is recoevong the action must be present but the customer does not need to be.
In people processing on the other hand, the customer is present and services provided are intangible, knowledge based, and customised to each client. For example retail banking services.
Answer:
See attached file
Explanation:
To obtain sales, the quantity sold is multiplied by the sale price in each of the regions.
Variable costs are multiplied by each of the quantities
Fixed costs are distributed according to what the company determined
From the difference between sales and variable costs we get the Contribution Margin. If the fixed costs are subtracted, the Segment Margin of each sector is obtained. Subtracting fixed costs that cannot be distributed, gives the Net Income.
The Fixed manufacturing overhead $ 800,000 was distributed between 40.000 units (produced units) not 35.000 (sold units)
