Answer:
D) $29,600
Explanation:
The mixed cost formula gives the relationship between the cost and the level of activities. It shows the cost as a function of the activity level.
The formula also shows that the cost is made up of a fixed element ($16,000) and a variable element ($3,40X).
Hence at an activity level of 4000 units,
Y = $16,000 + $3.40(4000)
= $29,600
Answer:
Ace Incorporated
The cost of inventory as of June 30 is:
= $4,000.
Explanation:
a) Data and Calculations:
June 1 Beginning Inventory $0
June 3 Purchased goods for $4,100
June 5 Returned goods costing($1,100)
June 6 Purchased goods for $1,000
June 30 Total available $4,000
b) The cost of inventory is made up of the cost of purchasing the inventory minus purchase returns. In this instance, there were no sales during June. This would have reduced the cost of the inventory available as of June 30.
Explanation:
The adjusting entry is as follows:
Supplies expense A/c Dr $370
To Supplies A/c $370
(Being supplies account is adjusted)
The Supplies expense is calculated below:
= Beginning Supplies balance + purchase an additional office supplies - supplies on hand
= $500 + $3,500 - $950
= $3,050
Simply we debited the supplies expense account and credited the supplies account for $3,050
Answer:
Explanation:
Assume the initial invest at the beginning is $100.
The investment at end of year 4 is:
100 x 1.16 x 1.11 x 1.1 x 1.1 = 155.80
a) CAGR over the 4 years = (155.8 / 100 ) ^ (1/4) = 11.72%
b) Average annual return over 4 years = (16% +11% + 10% +10%) /4 = 11.75%
c) Since the returns over the 4 year period are not much volatile, average annual return is a better measure.
If the investment's returns are independent and identically distributed, Average annual return will be the better measure because there is no correlation between returns over the years and thus there is no point to take into consideration the compounding effect by using CAGR.
