Explanation:
i=interest rate
X=current rate
2X = double current rate
n = number of years
Calculate time it takes to double at 3%:
2X = X(1+i)^n
simplify by cancelling out X
(1+i)^n = 2
substitute i = 3%
(1.03)^n =2
take log
n*log(1.03) = log(2)
n = log(2)/log(1.03) = 0.6931/0.02956 = 23.45 years
Similarly, for growth rate of 7%,
n = log(2)/log(1.07) = 0.6931 / 0.06766 = 10.24 years
So the difference is 23.45-10.24 = 13.21 years (to the hundredth) sooner
Answer:
Ending inventory= $5,040
Explanation:
Giving the following information:
Beginning Inventory= 1000 units for $7.20
Mar. 10: Purchase= 600 units for $7.25
Mar. 16: Purchase= 800 units for $7.30
Mar. 23: Purchase= 600 units for $7.35
Marvin sold 2,300 units.
Under the LIFO inventory method, the ending inventory cost is calculated using the first units incorporated to inventory.
Ending inventory in units= total units - units sold
Ending inventory in units= 3,000 - 2,300= 700 units
Ending inventory= 700*7.2= $5,040
Answer:
Under allocation= 1,000 underallocated
Explanation:
Giving the following information:
Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour, based on an estimate of 20,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were: Actual manufacturing overhead cost incurred $ 38,000 Actual direct labor-hours worked 18,500
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2*18,500= $37,000
Real overhead= 38,000
Over/under allocation= real MOH - allocated MOH
Under allocation= 38,000 - 37,000= 1,000 underallocated
Answer:
A. Telephone expense is debited $82; accounts payable is credited $82.
Explanation:
Mr. Peabody has incurred a debt of $82 on telephone expenses. His expenses have increased by $82, and his debts(liabilities) have also increased by $82.
An increase in expenses is recorded by debiting the relevant expense account. Mr. Peabody will debit the telephone expense account by $82.
Liabilities have increased by $82. An increase in liabilities is recorded by crediting the liabilities account. Mr. Peabody will complete this transaction by crediting the liabilities account by $82.
