Answer:
Material used = $855,000
Explanation:
The computation of the cost of direct material used is shown below;
Material purchased = $828,000
Add:
Opening Inventory = $279,000
Less:
Closing Inventory = ($252,000)
Material used = $855,000
we simply applied the above formula so that the cost of direct material used could come
Hence, the cost of direct material used in production is $855,000
Answer:
It’s A the nominal interest rate
Explanation:
Answer:
A) The mower is only expected to be needed for three years.
Explanation:
Excelsior is surely more expensive than the Grassassinator, due to its longer working life. Therefore, it is essential to examine the period of use of the lawn mower. There is absolutely no need to invest in a long-running lawn mower if it is going to be needed twice less the time. In this case, it would be more financially efficient to invest in the Grassassinator.
Explanation:
The computation is shown below:
Year Depreciation Book value
0 $1,200,000
1 $125,000 $1,075,000
2 $125,000 $950,000
3 $125,000 $825,000
4 $125,000 $700,000
5 $125,000 $575,000
6 $125,000 $450,000
7 $125,000 $325,000
8 $125,000 $200,000
The depreciation expense is
= ($1,200,000 - $200,000) ÷ (8 years)
= $125,000
Answer:
$23,000
Explanation:
current annual sales = 49,000 packs
Selling price of course packs = $14 each
variable cost per pack = $12
Earnings = $75,000
Contribution:
= current annual sales × (Selling price of course packs - variable cost per pack)
= 49,000 packs × ($14 - $12)
= 49,000 packs × $2
= $98,000
Fixed costs of producing the course packs:
= Contribution - Earnings
= $98,000 - $75,000
= $23,000
