Answer:
Gross margin= $71,760
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. <u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead. </u>
<u>First, we need to calculate the unitary production cost:</u>
<u />
Unitary production costs= (107,640 / 2,990) + 50 + 15 + 12
Unitary production costs= $113
<u>Now, the gross margin:</u>
<u />
Gross margin= sales - cost of goods sold
Gross margin= 2,760*139 - 2,760*113
Gross margin= $71,760
They should form a corporation because a partnership or sole proprietorship have unlimited liability.
Answer:
Explanation:
The journal entry is shown below:
Treasury Stock A/c Dr $90,000
To Cash A/c $90,000
(Being treasure stock is purchased for cash)
The computation is shown below:
= Treasury shares purchased × value per share
= 3,750 shares × $24
= $90,000
We simply debited the treasury stock account and credited the cash account so that the correct posting can be done
Answer:
$1,593,535.83
Explanation:
Future Value of mortgage determines the future value of a mortgage after payments have been made, at a regular frequency, charged a regular rate of interest, compounded at payment dates.
DATA
PV = $1,500,000
N = 24
r = 0.04/12
PMT = $1250
FV =?
Solution
PV = (PMT/r)*[1 – 1/(1 + r)^N] + FV/(1 + r)^N
1,500,000 = (1250/(0.04/12)) * (1 – 1/(1 + 0.04/12)^24) + FV/(1 + 0.04/12)^24
1,500,000 = 28785.31353687 + 0.92323916 FV
FV = (1,500,000 - 28785.31353687)/ 0.92323916
FV = $1,593,535.83