In the context of dollar-value LIFO, what is a LIFO layer?

An expected increase in the market price of oil in the coming year is likely to: shift the supply curve of oil to the left in th

diamong [38]

Answer:

cause no changes in the demand and supply curves of oil in the current year.

Explanation:

Changes in price don't generate shifts in the supply and demand curves in the short term. It generates a movement along the curves as non price changes are the ones that generate a shift in these curves. If the price of the oil increases, the demand quantity falls which will cause a movement along the demand curve. Also, this situation will increase the supply quantity which also generates a movement along the supply curve.

4 0

3 years ago

Playtown Corporation purchased 75 percent of Sandbox Corporation common stock and 40 percent of its preferred stock on January 1

Nesterboy [21]

Answer:

Elimination Journal.

Retained Earnings $210,000 (debit)

Common Stock $ 150,000 (debit)

Investment in Sandbox Corporation $270,000 (credit)

Non-Controlling Interest $90,000 (credit)

Explanation:

When dealing with consolidation of Financial Statements, the Equity and Retained Earning in the Subsidiary has to be eliminated from the records whilst the Investment in Subsidiary and the Non-Controlling Interest in Subsidiary are recognized.

Elimination of the common items in consolidation is done by the use of Pro-forma Journals.

Goodwill or Gain on Bargain Purchase are also recognized on the date of acquisition of subsidiary.

Goodwill is the excess of Purchase Price and Non-Controlling interest over the Net Assets Acquired.While Gain on Bargain Purchase is the excess of Net Assets Acquired over Purchase Price and Non-Controlling interest.

Elimination Journal.

Retained Earnings $210,000 (debit)

Common Stock $ 150,000 (debit)

Investment in Sandbox Corporation $270,000 (credit)

Non-Controlling Interest $90,000 (credit)

8 0

3 years ago

Who has the final say in matters of public policy about health actions? A. Administrator of the facility B. Families C. Public h

Harrizon [31]

Who has the final say in matters of public policy about health actions? Public health officer. The public health officer is in charge of making sure all health regulations and potential threats are taken care of. It is important to maintain public health and prevent diseases from happening.

4 0

3 years ago

If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is: Select one:

raketka [301]

Answer:

a. under applied.

Explanation:

For computing, whether it is under applied or over applied first, we have to compute the predetermined overhead rate. The formula is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

Now we have to find the applied overhead which equal to

= Actual direct labor-hours × predetermined overhead rate

So, the ending overhead equals to

= Actual manufacturing overhead - applied overhead

= under-applied

If actual overhead is more than the applied overhead

3 0

3 years ago

Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound i

Dmitry [639]

Answer:

Betram Chemicals Company

1. Relevant benefits and costs for each alternative:

Sale at split-off Sale after

further processing

Revenue $129,420 $238,620

Joint Costs 73,000 73,000

Cost for further processing - 42,000

Gross profit $56,420 $123,620

Additional profit $0 $67,200

2. Further processing of Anderine is more cost-effective by $67,200.

3. Further processing of Anderine is still better by $60,760.

Explanation:

a) Data and Calculations:

Anderine Dofinol Cermine Total Costs

Gallons 5,600 7,600 $73,000 $73,000

Selling price per gal. $13.00 $7.45

Sales revenue $72,800 $56,620 $129,420

Gross profit $56,420

Further processing $42,000

Total costs of production $115,000 $115,000

Output (5,600) 7,600 2,800

Selling price per gallon $7.45 $65

Sales revenue $56,620 $182,000 $238,620

Gross profit $123,620

Profit from further processing:

Gross profit with further processing $123,620

Gross profit before further processing 56,420

Additional profit $67,200

1. Relevant benefits and costs for each alternative:

Sale at split-off Sale after

further processing

Revenue $129,420 $238,620

Joint Costs 73,000 73,000

Cost for further processing - 42,000

Gross profit $56,420 $123,620

Additional profit $0 $67,200 ($123,620 - $56,420)

What if:

Purchasing order cost (5,600/500 * 20 * $10) = $2,240

Quality inspection cost (5,600/500 * 15 * $25) = $4,200

Additional costs = $6,440

Reduced additional profit = $60,760 ($67,200 - $6,440)

4 0

3 years ago