What are capital gains on an investment?

The following information was taken from the accounting records of Light Tool Corporation. Work in process inventory, beginning

Natali [406]

Answer:

47,250

Explanation:

The manufacturing costs in the year is the sum of work in process inventory, at the beginning of the year, the cost of direct materials, the direct cost of labor and the overhead assigned to production as computed thus:

manufacturing costs=50,000+260,000+135,000+500,000

manufacturing costs=945,000

amount of the work in process inventory on hand at year-end=manufacturing costs-cost of finished goods manufactured

amount of the work in process inventory on hand at year-end=945,000-897,750= 47,250

7 0

3 years ago

Based on the following information for Montana Investments, Inc., compute the rate of return on total assets. (Round the perce

AfilCa [17]

Answer:rate of return on total assets=22.22%

Explanation: Return on total assets is a ratio that measures the earnings generated by a company before interest and taxes in ralation to its total net assets which can be calculated from amount of financial and operations income grom a company's financial year in comparison to the average of that company's total assets.

For Montana Investments, Inc. in December31, 2019, we have that

Net income= $26,000

Interest expense

= $11,000

Average total assets= $194,000+$139,000/2

Return on total assets

=

(Net Income + Interest Expense) / Average total assets =

{$26,000 + 11,000 ) / [($194,000 + $139,000 ) / 2] =

37,000/166500=0.2222

=22.22%

5 0

3 years ago

An economy has five people: george, sarah, mason, abbot, and jin. george works for plastics, inc., 40 hours a week. sarah works

Katena32 [7]

The unemployed people in this economy are MASON AND ABBOT.
Unemployment is said to occur in an economy, when people who are in the working age bracket actively search for work for a long time without getting any. There are different types of unemployment. Unemployment rate is usually used to gauge how healthy an economy is. In the scenario given above, it can be seen that both Mason and Abbot are of working age and they are both actively searching for work without finding one.

3 0

3 years ago

Bulluck Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct

avanturin [10]

Answer:

Variable overhead efficiency variance= $544 favorable

Explanation:

Giving the following information:

Variable overhead 0.90 hours $ 3.40 per hour

Actual output 4,400 units

Actual direct labor-hours 3,800 hours

To calculate the variable overhead efficiency variance, we need to use the following formula:

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Variable overhead efficiency variance= (3,960 - 3,800)*3.4

Variable overhead efficiency variance= $544 favorable

Standard quantity= 4,400*0.9= 3,960

8 0

3 years ago

ignal mistakenly produced 1,175 defective cell phones. The phones cost $67 each to produce. A salvage company will buy the defec

erastova [34]

Answer:

Company shall rework on the cell phones.

Explanation:

In the given case we will do the comparison of the rework with the scrap.

In case of rework:

Total cost = $67 of manufacturing + $90 of rework = $157 each unit

Selling price then would be = $134 each

Loss on per unit = $157 - $134 = $23 on each cell phone.

In case no rework is done and the mobile phones are sold in scrap then the cost associated = $67 each

Value for sale = $33 each

Loss per unit on such sale = $67 - $33 = $34 each unit.

Since there is plenty of idle capacity the company in order to decrease the loss from selling these defective cell phones, the company shall rework on the phones, as loss in this case will be $34 - $23 = $11 per cell phone less than the loss in case of scrap sale.

6 0

4 years ago