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icang [17]
3 years ago
5

The ABC Company had its highest level of production in May when they produced 4,000 units at a total cost of $110,000 and its lo

west level of production in November when they produced 2,500 units at a total cost of $87,500. Using the high-low method, the estimated fixed costs are $
Business
1 answer:
lukranit [14]3 years ago
8 0

Answer:

Fixed cost= $50,000

Explanation:

The high low method is the process by which highest level of activity ND lowest level of activity are comapred along with total cost at each level. Fixed and variable cost can be calculated using equations.

Variable cost= (Highest activity cost- Lowest activity cost)/(Highest activity unit- Lowest activity unit)

Variable cost= (110,000-87,500)/ (4,000-2,500)

Variable cost= 22,500/ 1,500= $15 per unit

Fixed cost= High activity cost- (Variable cost* High activity units)

Fixed cost= 110,000- (15*4,000)

Fixed cost= 110,000- 60,000

Fixed cost= $50,000

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The Ayayai Corp. purchased $7990 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inven
sesenic [268]

Explanation:

The adjusted journal entry is shown below:

Corp Laundry supplies Expense A/c Dr $6,580

       To Corp Laundry supplies A/c $6,580

(Being the corp supplies expense is recorded)

It is computed below:

= Purchased value of laundry supplies - still on hand

= $7,990 - $1,410

= $6,580

The answer is correct but The options that are given are incorrect.

8 0
3 years ago
If during 2011 the Republic of Sildavia recorded a value added of $78 billion, wages of $40 billion, profits of $8 billion, and
Otrada [13]

Answer:

$12 billion.

Explanation:

Given: Value added during 2011= $78 billion.

           Total sales= $90 billion.

Intermediate goods are the goods used to produce final product and it is not included in the calculation of GDP, however, it is included in the value of final goods.

Now, finding the value of intermediate goods purchased.

Intermediate goods= Total\ sales - Total\ value\ added

⇒ Intermediate goods= \$ 90\ billion - \$ 78 \ billion

∴ Intermediate goods= \$ 12\ billion

Hence, value of intermediate goods purchased is $12 billion.

7 0
3 years ago
Recall the components of internal control. identify the internal control weakness in this​ situation, and propose a way to corre
ale4655 [162]

Answer:

The internal control weakness includes:

1. The credit department receives incoming cash from the customers.

2. A credit department can pocket cash received from a customer and copies all remittance slips for the controller, then destroy the remittance slip.

3. The credit department can then write off customer's account as uncollectible, and the company will stop pursuing collection from the customers

Explanation:

To begin, it is important to understand the concept of Internal Control. Internal control can be generally understood as the procedures determined to ensure organization's objectives in efficiency and effectiveness, reliable financial reporting and compliance with existing organization's rules and regulations.

Hence, internal control is meant to strengthen the achievement of an organization's objectives. Thus, we have seen a number of weaknesses from the scenarios painted above. It must be stated that the weaknesses stem from the fact that the company receives incoming cash receipt from customers.

To avoid and prevent this, a company should have a cash go to a clocked box at the bank. With this, the weaknesses emanating from physical cash handling by the credit department will be eliminated.

Taking a critical look at the internal control procedures, it'll be observed that the policies adopted on cash receipt is one not generally in tune with best practices. Hence, to strengthen the control, a cash go to a clock box at the bank should be created to facilitate and encourage customers' deposits in the banks. Doing this will ensure the department rids of weaknesses emanating from this cash treatment, and point number 2 and 3 as stated above can be easily resolved.

6 0
3 years ago
1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on M
Helen [10]

Answer:

1. 18-Mar

Dr Available for Sale Securities $548,184

Cr Cash $548,184

30-Jun

Dr Cash $9,113

Cr Dividend Revenue $9,113

31-Dec

Dr Securities Fair Value Adjustment $39,156

Cr Unrealized Holding Gain $39,156

2.1-Jan

Dr Investmeht in Nadal Corp. $81,750

Cr Cash $81,750

15-Jun

Dr Cash $7,900

Cr Investment in Nadal Corp. $7,900

31-Dec

Dr Investment in Nadal $29,000

Cr Revenue from Investment in Sub $29,000

Explanation:

1.Preparation of all the necessary journal entries for 2019

18-Mar

Dr Available for Sale Securities $548,184

Cr Cash $548,184

(13%*301,200*$14)

(To purchase 10% of Ramirez Fashion)

30-Jun

Dr Cash $9,113

Cr Dividend Revenue $9,113

(13%$70,100)

(To record a 13% dividend revenue $70,100)

31-Dec

Dr Securities Fair Value Adjustment $39,156

Cr Unrealized Holding Gain $39,156

[($15-$14)*13%*301,200]

(To adjust securities to FMV in an Equity account)

2.1-Jan

Dr Investmeht in Nadal Corp. $81,750

Cr Cash $81,750

(25%*32,700*$10)

(To purchase 25% of Nadal Corp.)

15-Jun

Dr Cash $7,900

Cr Investment in Nadal Corp. $7,900

(25%$31,600)

(To record cash dividend of $31,600)

31-Dec

Dr Investment in Nadal $29,000

Cr Revenue from Investment in Sub $29,000

(25%*$116,000)

(To record 25% revenue of $116,000 from Nada)

7 0
3 years ago
A customer who is long 1 oex may 315 call exercises the contract on this day. the customer will receive:________
Nutka1998 [239]

A customer who is long 1 OEX may 315 call exercises the contract on this day. the customer will receive $58.00. Option A

This is further explained below.

<h3>What is called exercises?</h3>

Generally,  If you possess a call option and the current stock price is greater than the strike price, it makes financial sense for you to execute your call option at this time.

You are able to make a profit by purchasing the stock at a lower price so that you can either instantly resell it to the market at a higher price or keep it for the long term.

In conclusion, On this day, a client who is long 1 OEX and has a 315 call option on the contract may execute it. The total amount that the client will get is $58.00. Alternative A

Read more about call exercises

brainly.com/question/14763313

#SPJ1

3 0
1 year ago
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