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4 years ago

Blue Company reports the following costs and expenses in May.

Business

1 answer:

Inessa [10]4 years ago

7 0

Answer:

(a) Manufacturing overhead = $176,700

(b) Product costs = $390,400

(c) Period costs = $72,390

Explanation:

a. The computation of the manufacturing overhead is shown below:

= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs+ Factory manager salary

= $17,000 + $13,950 + $2,600 + $49,900 + $82,600 + $2,350 + $8,300

= $176,700

b. The computation of the product cost is shown below:

= Direct materials used + Direct labor + manufacturing overhead

= $141,700 + $72,000+ $176,700

= $390,400

c. The computation of the period cost is shown below:

= Sales salaries + Depreciation on delivery trucks + Repairs to office equipment + Advertising + Office supplies used

= $47,500 + $4,700 + $1,900 + $15,500 + $2,790

= $72,390

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A written representation from a client’s management that, among other matters, acknowledges responsibility for the fair presenta

7nadin3 [17]

Answer:

The answer is Chief Executive Officer and and the Chief Financial Officer

Explanation:

As part of the requirements for audit process, the external auditor will obtain from the management a written representation for the financial statements being presented to the external auditor. The management is responsible for the preparation of Financial statement and the external auditor expresses their opinions on it.

To show accountability, The Chief Executive Officer and the Chief Financial Officer both sign on it.

6 0

3 years ago

The PE ratio: Assuming Net Income for the year is $250,000, what is the net cash flows from operating activities given the follo

solmaris [256]

Answer:

Net operating cash flow = $189,250

Explanation:

Particulars Amount$

Net income 250,000

Add:depreciation expense 9,500

Add:loss on sale of asset 1,250

Add:increase in salary payable 19,500

Less:increase in prepaid rent (27,500)

Add:increase in AP 29,500

Less:increase in inventory <u>(93,000)</u>

Net operating cash flow <u>$189,250</u>

4 0

3 years ago

Lisa's credit card balance this month is $969.16. Her APR (annual percentage rate) is 15.24 %. The minimum payment due is

8090 [49]

Answer:

It will take 50 months to complete the payment on his entire balance

Explanation:

We have to solve for n in an annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $20.00

time n

rate (0.1524 / 12 months per year) 0.00127

PV $969.1600

$20 \times \frac{1-(1+0.00127)^{-n} }{0.00127} = 969.16\\$

$(1+0.00127)^{-n}= 1-\frac{969.16\times0.00127}{20}$

$(1+0.00127)^{-n}= 0.93845834
$

Now, we use logarithmics properties to get the answer:

[tex]-n= \frac{log0.93845834}{log(1+0.00127)

n = 50.044991

8 0

3 years ago

If a company uses LIFO, a LIFO liquidation causes a company's income taxes to increase:_______

olasank [31]

Answer: a. When inventory purchase costs are rising.

Explanation:

Last In First Out is an inventory stock valuation method where newer inventory is sold first and older inventory are sold last.

When a LIFO liquidation occurs, it means that the company has sold off its new stock and are now selling the older one.

This will lead them to have a lower cost of goods sold as the older stock is usually cheaper. If Inventory purchase costs are increasing in the market, then sales prices will have to increase as well. The company will sell at this new price but will still have that lower cost of goods sold.

This means that they would have more profits as a result which will lead to more taxes being charged on them.

4 0

3 years ago

Flannigan Company manufactures and sells a single product that sells for $600 per unit; variable costs are $318. Annual fixed co

ch4aika [34]

Answer:

See below

Explanation:

Computation of target pretax

Break even point (Target profit)

= (Fixed cost + Target profit) × Selling price / Contribution margin

= ($991,700 + $1,235,000) × $600 / $600 - $318

= $2,226,700 × $600 / $282

= 4,737,659.57

5 0

3 years ago