Answer:
$12
Explanation:
Contribution margin is the net of sale amount and variable cost. It is the amount of return available to recover the fixed cost and make profit from after that for the business.
Selling price = $30
Only Variable manufacturing cost and Selling commission is consider as variable costs for the calculation of contribution margin because $4 per unit administrative cost is calculated on the current level of activities, it will not remains the same.
Variable manufacturing cost = $15
Selling commission = $30 x 10% = $3 per unit
Total Variable cost = $15 + $3 = $18
Contribution margin per unit = Selling price - Variable costs = $30 - $18 = $12
Answer and Explanation:
The categorization is shown below:
1 Purchase of a patent = Investing activities as it represents in a negative sign because it is a cash outflow
2 Depreciation expense Operating activities as it is added to the net income
3 Decrease in accounts receivable = Operating activities as it is added to the change in adjustments column
4 Issuance of a note payable = Financing activities as it represents in a a positive sign because it is a cash inflow
5 Increase in inventory = Operating activities as it is deducted from the change in adjustments column
6 Collection of note receivable = Investing activities as it represents in a positive sign because it is a cash inflow
7 Purchase of equipment = Investing activities as it represents in a negative sign because it is a cash outflow
8 Exchange of long term assets = Separate non cash activities note as it does not involved any cash transactions
9 Decrease in accounts payable = Operating activities as it is deducted from the change in adjustments column
10 Payments of dividend = Financing activities as it represents in a negative sign because it is a cash outflow
Answer:
$20,000
Explanation:
The small investment in equities and bonds must be valued at market value and must not be accounted for in-accordance with the speculation of the company. So the market value here is $20,000 and must be valued at this price irrespective of the management valuation.
Answer:
COGS 3807 debit
FG 7896 debit
WIP 2397 debit
Factory Overhead 14,100 credit
--to record the underapplication of overhead--
Explanation:
overhead rate:
$515,000 overhead / 515,000 labor cost = $1
each labor cost generates a dollar of overhead.
221,400 x 1 = 221,400 overhead in COGS
459,200 x 1 = 459,200 overhead in Finished Goods
139,400 x 1 = 139,400 overhead in WIP inventory
Total applied 820,000
Actual 805,900
Underapplied 14,100
Now we weight each concept and determiante the portion underapplocated in each concept
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E. You can send a presentation via email instead of having to fly to a customer.
