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andriy [413]
3 years ago
10

Union Company reported the following information about the production and sale of its only product during the first month of ope

rations:
Selling price per unit $225.00

Sales $315,000
Direct materials used $160,000
Direct labor $100,000
Variable factory overhead $60,000
Fixed factory overhead $80,000
Variable selling and administrative expenses $20,000
Fixed selling and administrative expenses $30,000
Production volume variance 0
Ending inventory, Direct Materials 0
Ending inventory, Work-in-process 0
Ending inventory, Finished Goods 600 units

Under absorption costing, what is the product cost per unit?

A) $130.00
B) $160.00
C) $200.00
D) $225.00
Business
1 answer:
AleksAgata [21]3 years ago
3 0

Answer:

C) $200.00

Explanation:

Absorption Product Cost = Direct Labor + Direct Materials + Variable Overheads + Fixed Overheads

Thus, we need to Calculate the Total Cost of Goods Manufactured as follows :

Direct materials used                        $160,000

Direct labor                                        $100,000

Variable factory overhead                 $60,000

Fixed factory overhead                      $80,000

Total Cost of Goods Manufactured $400,000

Then Calculate the product cost per unit

Product cost per unit = Total Cost / Total Production

                                   =  $400,000 / ($315,000/$225.00 + 600)

                                   =   $400,000 / 2,000

                                   =   $200.00

Note : Total Production = Units Sold <em>plus</em> Ending Finished Goods Inventory

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During 2020 the DLD Company had a net income of $85,000. In addition, selected accounts showed the following changes: Accounts R
zmey [24]

Answer:

$84,500

Explanation:

Data provided as per the question

Net income = $85,000

Depreciation expenses = $1,500

Accounts receivables = $3,000

Increase in accounts payable = $1,000

The computation of amount of cash provided by operating activities is given below:-

Amount of cash provided by operating activities = Net Income + Depreciation expenses - Accounts receivables + Increase in accounts payable

= $85,000 + $1,500 - $3,000 + $1,000

= $84,500

Therefore, for computing the Amount of cash provided by operating activities we simply applied the above formula.

5 0
3 years ago
NEED HELP ASAP
katovenus [111]

Pierre engaging in such actions is known as rationalizing.

When a person rationalizes a decision they:

  • <em>T</em><em>ry to prove that what they did isn't bad </em>
  • <em>C</em><em>ome up with some sort of reasoning to support their decision </em>

Pierre is clearly doing something wrong here by increasing expenses more than they are supposed to be. He however convinces himself that what he is doing is not bad because no one will notice.

He is therefore coming up with reasons to prove that what he is doing is not bad and we can conclude based on this fact that he is engaged in rationalizing his behavior.

<em>Find out more at brainly.com/question/14453354.</em>

7 0
1 year ago
Pierce Corporation exchanged old equipment for new equipment. The original cost of the old equipment was $120,000, and its accum
ololo11 [35]

Answer:

new equipment                   50,000 debit

accumulated depreciation  40,000 debit

loss at disposal:                   30,000 debit

                   old equipment               120,000 credit

--to record trade of equipment--

Explanation:

Let's break the transactions into small parts:

We need to remove the old equipment from accounting along with their accumulated depreciation so:

accumulated depreciation 40,000 debit

                   old equipment               120,000 credit

Then, we debit the new equipment at fair value:

new equipment 50,000 debit

Last, assuming the trade has commercial substance: we recognize the gain or loss on sale:

book value of traded equipment: 80,000

fair value of new equipment:         50,000

loss at disposal:                              30,000

<u>Thus, the journal entry will be as follows:</u>

new equipment                   50,000 debit

accumulated depreciation  40,000 debit

loss at disposal:                   30,000 debit

                   old equipment               120,000 credit

4 0
3 years ago
Which type of Financial Aid am I? I am given to students who come from lower-income families and I do not need to be repaid. *
Bas_tet [7]
Grant. A grant, is a form of financial aid that doesn’t have to be repaid.
8 0
3 years ago
A useful way of standardizing financial statements is to choose a _______ year and then express each item relative to that amoun
liberstina [14]

A useful way of standardizing financial statements is to choose a base year and then express each item relative to that amount.

Below, this is further discussed.

<h3>Financial statements: What are they?</h3>

Financial statements, in general, are official records of the financial activity and condition of a company, an individual, or another organization. Structured and simple-to-comprehend presentations of pertinent financial data are made.

In summary, Selecting a base year and then expressing each item according to that sum is a helpful method for standardizing financial reporting.

Explore more about Financial statements

brainly.com/question/14951563

#SPJ1

6 0
1 year ago
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