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4 years ago

Trio Company reports the following information for the current year, which is its first year of operations.

Business

1 answer:

Contact [7]4 years ago

7 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Direct materials $15 per unit

Direct labor $15 per unit

Overhead costs for the year

Variable overhead $3 per unit

Fixed overhead $120,000 per year

Units produced this year 20,000 units

Units sold this year 14,000 units

Ending finished goods inventory in

units 6,000 units

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

1<u>) Absorption costing method:</u>

Unitary fixed overhead= 120,000/20,000= 6

Unit product cost= direct material + direct labor + total unitary overhead

Unit product cost= 15 + 15 + 3 + 6= 39

<u>Variable costing:</u>

Unit product cost= direct material + direct labor + variable overhead

Unit product cost= 33

2) Ending inventory:

Absorption costing= 6,000*39= $234,000

Variable costing= 6,000*33= $198,000

3) Cost of goods sold:

Absorption costing= 14,000*39= 546,000

Variable costing= 14,000*33= 462,000

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4. Both the concentration and Herfindahl indices computed by the U.S. Bureau of Census tends to overstate the actual level. In a

Elodia [21]

Answer:

The use of data aggregation leads to overstatement of the concentration and Herfindahl indices

while the use of National/state data leads to understatement of the degree of concentration in local markets.

Explanation:

The ratio of concentration and Herfindahl indices computed are mainly made up of foreign players while the contributions of small local unorganized players are not considered, which leads to the increase in the value of indices and ratios been used, ( i.e. The use of data aggregation ) . hence the overstatement of the actual level.

The understatement of the degree of concentration in local markets happens because of the use of national and state data while computing the concentration in the local markets like gasoline and this is mainly caused by the presence of fewer industries in the market. The state and national data does not reflect the true concentration in the local market hence the degree of concentration is understated at the local level.

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3 years ago

Omega Company has sales of $300,000 and cost of goods sold of $200,000. The cost of goods sold is a variable cost. The Company i

Vitek1552 [10]

Answer:

A 10% increase in revenue will produce a A) 15.0 % change in net income

Explanation:

Net income before increasing in revenue = sales - Cost of goods sold - Variable operating expenses - fixed operating expenses = $300,000 - $200,000 - $40,000 - $20,000 = $40,000

Revenue after increasing = $300,000 + $300,000 x 10% = $330,000

When revenue increase, variable costs will increase.

Cost of goods sold = $200,000 + $200,000 x 10% = $220,000

Variable operating expenses = $40,000 + $40,000 x 10% = $44,000

Net income after increasing in revenue = sales - Cost of goods sold - Variable operating expenses - fixed operating expenses = $330,000 - $220,000 - $44,000 - $20,000 = $46,000

Change in net income = ($46,000 - $40,000)/$40,000 = 15.0%

4 0

4 years ago

What are examples of types of products that are currently being manufactured by joint ventures between the U.S., Canada, Mexico,

choli [55]

Answer:

Uber Taxi

Star Bucks

Tata Global Beverages

Siemens and Nokia

Alibaba

Explanation:

Joint venture is the business in which there are two or more parties who shares the ownership. The business management may be mutually decided. There are many examples of Joint ventures in the world. Uber Taxi is one of the finest example of joint venture where Volvo vehicles shares the ownership. The joint venture reduces the investment cost for both the parties. The business can be quickly spread in the world by the efforts of two or more parties that form the joint venture.

3 0

3 years ago

Restore Construction Company enters into a contract to remodel Sam’s Home Store, agreeing to use only products from United Build

BlackZzzverrR [31]

Answer:

Sam’s Home Store can enforce the contract against Restore Construction Company

Explanation:

In contract law, only the parties involved in a contract can take action to enforce the contract. In this case Sam' Home Store signed the contract with Restore, so they can enforce it. Any third party beneficiaries from the contract, like United Building Supplies, are not entitled to enforce anything.

6 0

3 years ago

Assume that Amazon.com has a stock-option plan for top management. Each stock option represents the right to purchase a share of

ankoles [38]

Answer:

1/1/2014 No entry

12/31/2014

Dr Compensation Expense $6,000

Cr Paid-in Capital—Stock Options $6,000

b. 1/1/2014

Dr Unearned Compensation $28,000

Cr Common Stock $700

Cr Paid-in Capital in Excess of Par $27,300

12/31/2014

Dr Compensation Expense $5,600

Cr Unearned Compensation $5,600

c. No change for Part A

Part B

1/1/2014

Dr Unearned Compensation $31,500

Cr Common Stock $700

Cr Paid-in Capital in Excess of Par $30,800

12/31/2014

Dr Compensation Expense $6,300

Cr Unearned Compensation $6,300

d. 0ptions 1,2&3

1.Substantially all the employees may participate

2. Discount from the market is small (less than 5%)

3. The plan tend to offers no substantive option feature.

Explanation:

a.Preparation of the journal entry(ies) for the first year of the stock-option plan.

1/1/2014 No entry

12/31/2014

Dr Compensation Expense $6,000

($6 * 5,000 ÷ 5)

Cr Paid-in Capital—Stock Options $6,000

b. Preparation of the journal entry(ies) for the first year of the plan

1/1/2014

Dr Unearned Compensation $28,000

($40 * $700)

Cr Common Stock $700

($1 * 700)

Cr Paid-in Capital in Excess of Par $27,300

($28,000-$700)

12/31/2014

Dr Compensation Expense $5,600

($28,000 ÷ 5)

Cr Unearned Compensation $5,600

a. In a situation where we assume that the market price of the stock on the grant date was $45 per share their would be NO change for PART A except in a situation where the fair value of options changes.

Part B

1/1/2014

Dr Unearned Compensation $31,500

($45 * $700)

Cr Common Stock $700

($1 *$700)

Cr Paid-in Capital in Excess of Par $30,800

($31,500-$700)

12/31/2014

Dr Compensation Expense $6,300

($31,500 ÷ 5)

Cr Unearned Compensation $6,300

d. Based on the information given the provisions that must be in place for the plan in order to avoid recording compensation expense will be option 1,2&3

1.Substantially all the employees may participate

2. Discount from the market is small (less than 5%)

3. The plan tend to offers no substantive option feature.

7 0

3 years ago