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3 years ago

10

Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $30 per basketball and

$600 when the price is set at $20

1 answer:

NemiM [27]3 years ago

4 0

You would get 20 basketballs at $30 and 30 basketballs at $20.

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If Country A is an agricultural country and Country B has many cities and factories, it would make sense for

soldi70 [24.7K]

Answer:

Country A to specialize in growing corn while country B specializes in making cars

3 0

3 years ago

Knight Company reports the following costs and expenses in May. Factory utilities $16,120 Direct labor $69,685 Depreciation on f

GarryVolchara [31]

Answer:

a. $180,850

b. $390,269

c. $74,837

Explanation:

a. The computation of the manufacturing overhead is shown below:

= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs+ Factory manager salary

= $16,120 + $13,703 + $2,894 + $52,814 + $83,926 + $3,044 + $8,349

= $180,850

b. The computation of the product cost is shown below:

= Direct materials used + Direct labor + manufacturing overhead

= $139,734 + $69,685 + $180,850

= $390,269

c. The computation of the period cost is shown below:

= Sales salaries + Depreciation on delivery trucks + Repairs to office equipment + Advertising + Office supplies used

= $49,631 + $4,044 + $2,185 + $15,670 + $3,307

= $74,837

7 0

3 years ago

During the second year of the equipment’s life, $21,900 cash is paid for a new component expected to increase the equipment’s pr

Alona [7]

Answer:

S/N ACCOUNT DEBIT CREDIT

1 Equipment $22,000

Cash $22,000

Being payment for new component expected to increase the

equipment’s productivity by 10% a year

2. Equipment Repairs expenses $6,250

Cash $6,250

Being payment for equipment repair

3. Equipment $14,870

Cash $14,870

Being payment for equipment repair to prolong the useful life

the asset

Explanation:

The initial cost incurred in acquiring an asset is debited to asset account, subsequently every other cost spent on the assets are either expenses against the earning of that period or expensed over many years over the useful life of the asset.

Capitalization is the recognition of an expense as an asset in the balance sheet rather than expenses in the income statement.

The payment of $22,000 paid for the equipment productivity must be capitalized, that is added to the cost of the asset because it is a cost that is expected to increase the equipment’s productivity by 10% a year.

The $6,250 paid for normal repair is a revenue items which is to be expensed against the earning of that period.

The $14,870 paid for repairs which will increase the useful life of the equipment from four to five years is a capital expenditure which should capitalized, that is added to the cost of the asset.

7 0

3 years ago

The BRS Corporation makes collections on sales according to the following schedule: 45% in month of sale 50% in month following

swat32

Answer:

$174,500.

Explanation:

Budgeted sale in June would made up of the collections:

Month of sale collection

45% × June = 45% × 170,000 = 76500

Month following sale

50% × May sales = 50% × 180,000 = 90000

Second month following sales

= 5% × April sales = 5% × 160,000 = 8000

Budgeted cash collection for June

= 76,500 +90,000 +8,000

= $174,500.

3 0

3 years ago

Use the table to indicate which description characterizes economies of scale and which characterizes economies of scope.

kenny6666 [7]

Answer and Explanation:

The economics of scope refers to the total cost production cost i.e to be averaged for the various type of goods

While on the other hand, the economics of scale refers to the benefit of the cost than occurs when there is a higher production level at a time

Based on this, the classification is as follows

1, Economics of scale as the output rises that declines the LAC so automatically it goes downward

2. economics of scope

3 0

3 years ago