Answer:
amount allocated to the work-in-process ending inventory $ 30,000
Explanation:
Spoilage is treated as abnormal loss.
Completed units of Finished goods = 5000 units (100% complete)
Abnormal loss units = 4000 units (100% complete as loss detected on completion)
Closing WIP units = 1000 units (100% complete in respect to material )
Total equivalent unit for material = 10,000 units
Total cost of material = $300,000
Material cost per equivalent unit = $ 30 per equivalent unit
Material cost in Closing WIP(1000 units @30) = $ 30,000
Answer:
The Bronco Corporation
The fair value of the equipment is:
= $145,000.
Explanation:
a) Data and Calculations:
Book value of land = $125,000
Fair value of the land = $160,000
Amount received from the equipment owner in exchange = $15,000
Fair value of the equipment = $145,000 ($160,000 - $15,000)
b) This simply means that the equipment is worth less than the land which is exchanged between Bronco and the equipment owner.
Answer:
The difference between autonomous expenditure and induced expenditure is as follows:
The autonomous expenditure is incurred even without a disposable income. The expenditure is incurred to provide basic necessities of life. In such a situation, the person spends from savings account or borrows to ensure that the basic necessities are provided.
On the other hand, induced expenditure is a disposable income-based expenditure. This implies that when disposable income rises, induced expenditure also rises, and vice versa. Induced expenditure is usually incurred to fund normal goods and services and not necessities. Without disposable income, there is no induced expenditure.
All the four sectors of the economy engage in these expenditures. The public (government) and household sectors are mostly affected. However, even the business and non-profit sectors are also affected by these types of expenditure.
Explanation:
We can distinguish between two types of aggregate expenditure. The first one is autonomous aggregate expenditure, which does not vary with the level of real GDP while induced aggregate expenditure varies with real GDP.
1. False.
2. True
3. True
4. True
5. False
6. False