Answer:
The maximum amount that Michel can borrow is 70,000 dollars.
Explanation:
Please see attachment .
Answer:
Explanation:
The journal entry that would include is shown below:
Work in Progress inventory A/c Dr $125,000
Factory overhead A/c Dr $24,000
(Being labor cost is recorded)
The computation is shown below:
Work in progress = Labor expenses + whole labor expenses
=$88,000 + $37,000
= $125,000
The labor expenses are directly related to the product which means it is a direct cost
And, the whole labor expense is considered to be the overhead cost as it is not directly related to the product
And, the $24,000 is also considered as an overhead cost because it is used in both the departments so it is come under the factory overhead account
$14,000 rupees will be disbursed totally in march.
<u>Explanation</u>:
- The operating cost is $38,000 per month. This is including depreciation. So cash pending on March 1 is $8,000.
- At the end of March month, the cash balance of $6000 is required. So a total of $14,000 is required at the end of the month. Including the labor costs, he wants to pay $14,000.
- He can borrow money in multiples of $1000. For emergencies, this money can be borrowed. So $14,000 should be dispersed in the month of March.
