Answer:
Beginning Raw material Inventory = Direct materials used - Raw Materials purchases + Ending raw materials inventory
= 188,420 - 159,120 + 22,610
= $51,910
Total cost of work in process = Cost of goods manufactured + Work in process (12/31)
= 544,240 + 83,230
= $627,470
Total Manufacturing costs = Total cost of work in process - Work in process (1/1)
= 627,470 - 220,940
= $406,530
Direct labor = Total Manufacturing costs - Total overhead - Direct materials used
= 406,530 - 139,320 - 188,420
= $78,790
Answer:
Given,
Annual demand, D = 12500,
Setting up cost, S = $ 49,
Production rate per year, P = production facility × capability of production = 300 × 105 = 31500,
Holding cost per year, H = $ 0.15,
Hence,
(i) Optimal size of the production run,
(ii) Average holding cost per year,
(iii) Average setup cost per year,
(iv) Total cost per year = average setup cost per year + average holding cost per year + cost to purchase 12500 lights
= 166.44 + 166.48 + 12500(0.95)
= $ 12207.92
Answer: d) $8750
Explanation:
The Cash buffer is also the margin of the total value of the stock.
= Initial margin * Investment value
= 70% * (125 * 100)
= 70% * 12,500
= $8,750
Answer: Understatement, $30,900
Explanation:
There will be an UNDERSTATEMENT of McGinnis' net income for the most recent fiscal year of $30,900.
The Understatement arises because as of year end which is June 30th, McGinnis were not paid for their services that cost $40,900 and instead will only be paid on the 8th of the next month so it was not accounted for in the net income.
The reason the net income understatement is $30,900 and not $40,900 is because McGinnis will still have to account for the payment to it's employees. If in a five day week they earn $12,500, that would mean that they earn $2,500 a day (12,500/5). Seeing as June ended on a Thursday, that is a 4 day week which means $2,500*4= $10,000.
That $10,000 will reduce the net income by that amount.
The net effect is a $30,900 UNDERSTATEMENT.
The answer to this question is: <span> accounting for leases and accounting for fair value assets
Leases and fair value assets is often used by companies in order to make their company valuation seem higher than it supposed to be. So, standardized rules regarding the proper way to make the valuation should be written under the Generally accepted accounting principles.</span>
