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Nastasia [14]
3 years ago
12

Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture

.
Required:
1. Classify the following manufacturing costs of Business Solutions as (a) variable or fixed and (b) direct or indirect.
2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2020. Assume the following manufacturing costs:
Direct materials: $2,600
Factory overhead: $510
Direct labor: $1,200
Beginning work in process: none (December 31, 2019)
Ending work in process: $550 (January 31, 2020)
Beginning finished goods inventory: none (December 31, 2019)
Ending finished goods inventory: $400 (January 31, 2020)
Business
1 answer:
erica [24]3 years ago
7 0

Answer:

cost of goods manufactured= $3,760

Explanation:

1.

We weren't provided with the list

2.

Direct materials: $2,600

Factory overhead: $510

Direct labor: $1,200

Beginning work in process: none (December 31, 2019)

Ending work in process: $550 (January 31, 2020)

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 0 + 2,600 + 1,200 + 510 - 550

cost of goods manufactured= $3,760

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Describe an important difference in the way an economist and a businessperson might view a monopoly.
Umnica [9.8K]

Answer:

<h3>An economist would view a monopoly as not beneficial and optimal to society. A businessperson would view monopolies as a great idea to maximize profits due to the lack of competition</h3>

Explanation:

hope it's helps you if i am sorry if my answer is wrong

8 0
3 years ago
Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate
olga_2 [115]

Answer:

Option E is correct

Price of share = $31.95

Explanation:

The price of the share is the future dividend  discounted at the required rate of return .

The required rate of return is the cost of equity . The cost of equity is computed as follows:

Cost of equity = Rf + β(Rm-Rf)

Rf= 4.50, Rm= 10.50, β= 0,75

Ke= 4.50% + 0.75×(10.50-4.50)

Ke= 9%

Price of share = Do×(1+g)/(Ke-g)

Price of the share = 0.75 × (1.065)/(0.09-0.065)

                             = 31.95

Price of share = $31.95

7 0
3 years ago
What is the rationale behind the ceiling when applying the lower-of-cost-or-market method to inventory?
Taya2010 [7]

Answer:

The correct answer is letter "D": Prevents overstatement of the value of obsolete or damaged inventories.

Explanation:

The lower-of-cost-or-market method values assets according to the lowest value possible choosing between the market value or the asset's historical cost. This accounting principle is useful to avoid exaggerating the value of obsolete or damaged assets the firm might have in stock.

5 0
3 years ago
Your firm is thinking about investing ​$200 comma 000200,000 in the overhaul of a manufacturing cell in a lean environment. Reve
Zepler [3.9K]

Answer:

EAW = -$17,545.71

Explanation:

initial investment = $200,000

cash inflows;

  • Year 1 = $33,000
  • Year 2 = $44,000
  • Year 3 = $55,000
  • Year 4 = $66,000
  • Year 5 = $77,000
  • Year 6 = $88,000
  • Year 7 = $99,000
  • Year 8 = $110,000
  • Year 9 = $132,000

cash outflows:

  • Year 1 = $20,000
  • Year 2 = $30,000
  • Year 3 = $40,000
  • Year 4 = $50,000
  • Year 5 = $60,000
  • Year 6 = $70,000
  • Year 7 = $80,000
  • Year 8 = $90,000
  • Year 9 = $100,000

EAW = equivalent annual worth = equivalent annual benefits - equivalent annual costs

to determine the EAB we must first find the PV of the cash inflows using a financial calculator = $408,348.84

EAB = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($408,348.84 x 10%) / [1 - (1 + 10%)⁻⁹] = $70,905.91

to determine the EAC we must first find the PV of the cash outflows (including initial outlay) using a financial calculator = $509,395

EAC = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($509,395 x 10%) / [1 - (1 + 10%)⁻⁹] = $88,451.62

EAW = $70,905.91 - $88,451.62 = -$17,545.71

5 0
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Suppose that the rural part of a country is hit by a major earthquake
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Answer:

(a) How this episode is likely to affect the economic well-being of people in the country

In the short-run, there will be an increase in labor demanded, increasing jobs to build homes and repair the damage caused by the earthquake. In the long-run, things will begin to go back to normal.

(b) How this episode is likely to affect the economy’s measured GDP

In this case, GDP measurements will shift causing less of an input in private spending and an increase in government spending due to subsidies to increase home-building.

6 0
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