Answer:
Option (d) is correct.
Explanation:
Given that,
Direct materials = $44,200
Direct labor = $31,800
Manufacturing overhead = $25,200
Selling expenses = $22,100
Administrative expenses = $37,100
Conversion cost:
= Direct labor + Manufacturing overhead
= $31,800 +$25,200
= $57,000
Therefore, the conversion costs during the month totaled $57,000.
Answer:
1. Market Equilibrium, 2. Interest Rate, 3. Rationing, 4. Supply Shock, 5. Excess Supply, 6. Excess Demand, 7. Price Floor
Explanation:
1. The point at which quantity demanded and quantity supplied are equal: <u>Market Equilibrium </u>
2. The financial and opportunity costs consumers pay in searching for a good or service : <u>Interest Rate </u>
3. A system of allocating scarce goods and services by criteria other than price: <u>Rationing </u>
4. A sudden drop in the supply of a good: <u>Supply (decrease - leftward shift) shock </u>
5. Any situation in which quantity supplied exceeds quantity demanded: <u>Excess Supply </u>
6. Any situation in which quantity demanded exceeds quantity supplied: <u>Excess Demand </u>
7. A government-mandated minimum price that must be paid for a good or service: <u>Price Floor (Minimum Support Price)</u>
Answer:
The answer is C.
Explanation:
Reducing tax rate according to supply - side policy creates demand pull inflation.
Demand pull inflation is a situation whereby people have more buying power due to the availability of cash thereby leading to high demand and consequentially leading to an increase in the price of goods and services by suppliers.
That is the process where demand outplays supply due to the high purchasing power thereby causing price to increase which is the demand pull inflation effect.
Answer:
The Journal entry is as follows:
Construction in progress A/c Dr. $950,000
Cost of construction A/c Dr. $1,600,000
To revenue from long term contracts $2,550,000
(To record the revenue in 2018)
Workings:
Cost of construction:
= cost of 2017 + cost of 2018
= $1,100,000 + $500,000
= $1,600,000
