Difference between beginning and ending CoG: 20,000-10,000 = 10,000
Difference + sold:
10,000 + 40,000 = 50,000
Answer: $50,000
Answer:
D. The outlet substitution bias injects an upward bias into the CPI
Explanation:
Answer:
1) $141,000
2) $198,000
3) $ 61,000
4) $122,000
Explanation:
1) we sum ($80,000+$42,000+$19,000)= $141,00,0 according to the cost’s theory
2) we sum all amounts (80,000+42,000+19,000+22,000+35,00)= 198,000 we sum all amounts because those are the cost that the company incurred In the period.
3) Conversion cost we obtain summing direct labor+ manufacturing overhead ( 42,000+19,000)= $61,000
4) Prime costs we obtain summing direct materiales+ direct labor ( 42,000+80,000)= $122,000
Answer:
<h2>The Average cost usually decreases as the output expands.Hence,the answer in this case would be option c. or will always decrease as output expands.</h2>
Explanation:
- Fixed costs or expenses of production refers to those that are fixed or constant through out the production process or does not depend on the changes or adjustments in the actual output or production level.
- Some of the common examples of fixed cost of production include building rent,utility bills,land rent,insurance and interest payments.Note that these costs and expenses are fixed and unchanged and any firm or company has to pay them regardless of the production or output level.
- Now,since the average fixed cost of production is calculated by dividing the total fixed cost of production by the quantity of output produced by the firm at any particular period of time,the average fixed cost of production will decrease.As the output expands the denominator of the average fixed cost formula will increase but note that the numerator of the formula or the total fixed cost of production will always remain constant.Therefore,the average cost of production keeps decreasing with an increase in output or production level,signifying economies of scale.
Answer: Dividend of $100,000, Capital Gain of $100,000 and Tax Free Return on basis of $100,000
Explanation:
Longhorn Company reports current E&P of $100,000 in 20X3 and still distributed $300,000 to it's sole shareholder. Because it had $100,000 in current E&P, that is all it can declare as Dividends. For this reason, the shareholder will recognize $100,000 as Dividends.
The Shareholder has a basis of $100,000 in the stock of Longhorn. As a result of this, $100,000 of the Distribution will be termed a TAX FREE Return on Basis because he is receiving a return on his basis that is neither a dividend nor capital gain.
The remaining $100,000 will be considered a Capital Gain as it reflects a rise in his stock.
