Answer:
The answer is C
Explanation:
we are given that a company starts with 900 units which are 35% complete that means during the production period they are completed, then we are further told that 5000 units are started and completed therefore we add the 900 units we started with with the 5000 units that are started and completed during the period then we are told that at the end of the process 800 units are still in process and 25% completed there fore we add the 25% of 800 units to the 5900 units that are completed therefore we calculate the equivalent units produced by the department as follows:
900 units + 5000 units + 800 units x 25% = 6100 units that are completed on a weighted average method.
The original data is :
Data for Hermann Corporation
Per unit Percent of sales
Selling price $ 75 100%
Variable expenses 51 68
Contribution margin $ 24 32%
The fixed expenses are $ 75,000 per month and the company is selling 4000 units per month.
Solution :
Present Proposed
Sales 300000 375000
Less : Variable cost 204000 275000
Contribution margin 96000 100000
Less : Fixed expenses <u> 75000 </u> <u> 75000 </u>
Net income 21000 25000
The net operating income : Increases 4000
Net operating income = increased sales Net income - current sales net income.
Therefore the higher quality component should be used.
Please help me! This is due tomorrow and I really need some help! Thank you.
Answer:
$1,200
Explanation:
Calculation to determine what the amount of ending inventory appearing on the balance sheet will be:
First step is to determine the units in ending inventory
Units in ending inventory=500 units + 600 units – 800 units sold
Units in ending inventory= 300
Now let determine the Ending inventory
Ending inventory=300 units x $4.00
Ending inventory = $1,200
Therefore the amount of ending inventory appearing on the balance sheet will be:$1,200
