Answer:
$28,700
Explanation:
We know that
Ending work in process inventory = Opening work in process inventory + total manufacturing cost - cost of finished goods manufactured
where,
Total manufacturing cost = cost of direct materials used + direct labor cost + overhead cost
= $408,000 + $56,000 + $72,000
= $536,000
So, the ending work in process inventory would be
= $16,200 + $536,000 - $523,500
= $28,700
Answer:
92.86%
Explanation:
Debt-to-income ratio is a comparison or personal debts against income. It is used to assess an individual ability to accommodate more debts.
The formula for for calculating Debt to income is
Debt to income is <u> Total of Monthly Debt Payments </u>
Gross Monthly Income
For Affan, Total debts are $450 + $375 + $50+ $100 =$ 975
Gross income is not given , we use net income which is $1,050
Debt to income ration = $975/$1050
= 0.92857 x 100
= 92.86%
Answer:
Decrease by $132,100
Explanation:
Computation of the given data are as follow:-
We can calculate the Operating Income by using following formula:-
Fixed Cost = Fixed Cost * Dropped Rate
= $193,000 * 30/100
= $57,900
So, Operating Income = Sales - Variable Cost - Fixed Cost
= $,1050,000 - $860,000 - $57,900
= $132,100
According to the Analysis, the operating income will be decrease by $132,100 if the business segment is eliminated.
In a pure competition market, all products that being sold in that market is EXACTLY the same. None is worse and none is better.
In that condition, Buyers will make their decision based on price ( since all product's quality is possible)
That's why producers should sell where p=MC, which mean they should sell in the lowest price possible to be able to compete with other competitors
Answer:
Refer To The attached screen shot. It contains the Income Statement Prepared under Absorption Costing.
Explanation:
Absorption Costing assumes that the Manufacturing Costs include Direct Material, Direct Labor, Variable Overhead, and Fixed Overhead. Whereas, Selling and Administrative Expenses are classified as period Costs. These period costs are recognized in the period in which they are incurred. On the other hand, the manufacturing costs are recognized when the goods on which the costs were incurred are sold. That's why we don't recognize $78,000 as a Fixed Overhead because these overhead costs were incurred to produce 6,000 rackets. We have to calculate the fixed overhead cost per unit and multiply it with the units sold.
I hope I made it clear. If you have any queries, feel free to contact me.
Thanks.