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Mumz [18]
1 year ago
5

Opportunity costs at a manufacturing company are not part of manufacturing overhead. True or false?.

Business
1 answer:
Bess [88]1 year ago
6 0

It is true that Opportunity costs at a manufacturing company are not part of manufacturing overhead.

<h3>What is Opportunity costs ?</h3>

Opportunity costs can be described as the term that represent the potential benefits which  individual, investor, misses out in the process of choosing one alternative over another.

Because opportunity costs are unseen  can be easily overlooked, therefore, in this case, It is true that Opportunity costs at a manufacturing company are not part of manufacturing overhead.

Learn more on Opportunity costs at:

brainly.com/question/1549591

#SPJ1

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On January 1, 2014, Borstad Company purchased equipment for $1,180,000. It is depreciating the equipment over 25 years using the
bezimeni [28]

Answer:

Explanation:

a)Purchase cost - 1,180,000

Useful life - 25

Annual depreciation = 47,200

Timeline - Jan 1 , 2014 - 2019 = 6 years

Accumulated depreciation = 47200*6=283,200

Carrying value at 2019 = (1,180,000 - 283,200)= 896,800

B) Annual cash flow - 400,000

Annual cash outflow - (295,000)

Net cash inflow= 105,000

Net cash flow for 8 years = 105000*8 = 840000

Since the net cash inflow is less than the carrying value , there is an impairment.

PV value of the net cash inflow at 12% discount for 8 years = 521,602

Impairment loss = $375,198    

At December 21.2019

2.) Debit impairment loss - $375,198

Credit equipment - $375,198        

               

4 0
3 years ago
Prepare the issuer’s journal entry for each of the following separate transactions.a. On March 1, Atlantic Co. issues 51,000 sha
Shalnov [3]

Answer:

March 1

Account                                             Debit               Credit

Cash                                                 $323,000

Common Stock                                                         $153,000

Paid-In Capital in Excess

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April 1

Account                                              Debit                Credit

Cash                                                 $87,000

Common Stock-no par value                                    $87,000

April 6

Account                                             Debit                 Credit

Inventory                                          $56,000

Common Stock                                                           $56,000

Machinery                                        $170,000

Paid-In Capital in Excess of

Common Stock                                                           $170,000

Note Payable                                                              $92,000

Cash                                                 $92,000

4 0
3 years ago
Assume you are running a paid campaign and your original budget was $50,000 for the month. It's a 31-day month and you have spen
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= $75000 - $20000

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Also, the money was spent for 11 days, therefore the number of days remaining will be:

= 31 - 11

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Answer:

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N = 8

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PV =  $1000 * (1.055)^-8

PV =  $1000 * 0.651599

PV = $651.59

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