Answer:
Prime cost = $94,000
<em>Conversion cost</em> = $135,400.
Explanation:
<em>Prime cost is the addition of direct material cost , direct labor cost and direct expenses.</em>
<em>Conversion cost is the cost of converting raw materials into finished product. It s the sum of direct labour cost and production overheads.</em>
For Bento Engineering,
<em>Prime cost = direct labour cost (since no figure is given for direct material and direct expenses.)</em>
Prime cost = $94,000
Conversion cost = Direct labour cost + overheads
<em>Conversion cost</em> = $94,000 + 126,000
= $135,400.
Prime cost = $94,000
<em>Conversion cost</em> = $135,400.
(A) Debt ratio = 0.32
Debt/(debt + equity)= 0.32
Debt = 0.32 *Debt + 0.32 *Equity
0.68* Debt = 0.32* Equity
Debt = 0.32*Equity/0.68 = 0.32/0.68 * Equity
Debt /equity ratio = (0.32/068*Equity)/Equity
Debt/Equity ratio = 0.32/0.68 = 0.47
Debt-equity ratio = 0.47 (Rounded to 2 decimals)
(B) Equity multiplier = 1 + debt -equity = 1+0.47 = 1.47
Equity multiplier = 1.47 (Rounded to 2 decimals)
Gross profit is net sales minus the cost of goods sold. It reveals the amount that a business earns from the sale of its goods and services before the application of additional selling and administrative expenses.
Answer:
$360,000
Explanation:
Last in first out (LIFO) is a method used in inventory where the cost of most recently purchased goods is the one to be expensed first. Also current losses are the first to be reported.
An inventory loss incurred in a quarter must not be deferred, but recorded as items within an interim must be reported in the same period they were incurred, unless it can be redeemed before the end of the fiscal year. It is not considered a temporary item.
The loss reported in May will be reported for that quarter in June.
