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3 years ago

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

Business

1 answer:

Contact [7]3 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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National Bank quotes the following for the British pound and the New Zealand dollar: Quoted Bid Price Quoted Ask Price Value of

Snowcat [4.5K]

Answer:

$15.43

Explanation:

Following actions are required for triangular arbitrage:

Available: $ 10,000

Buy sterling pound @ 1 $ = 1.62 pounds and receive pounds 6172.84 upon conversion.

Now, sell these pounds and purchase NZ $ at the rate :

1 pound = NZ $ 2.95 and receive NZ$ 18209.87

Now, reconvert the above proceeds into US $ at the rate

1 NZ $ = $0.55 i.e sell NZ $ at this rate and receive US $ 10,015.4285

Hence profit from implementing triangular arbitrage is $10,015.43 - $10,000

= $15.43

Arbitrage refers to the prospect of earning a profit by utilizing the mispricing in two different financial markets. An arbitrageur never uses his own funds and always borrows.

Arbitrage works only in the scenario wherein the interest rate purchase parity (IRPT) does not hold good.

The strategy of arbitrage is best explained as "Buy at low price and sell at a high price".

7 0

3 years ago

Ariana withdrew $400,000 out of her personal savings account and used it to start her new Internet cafe. The savings account pay

Vikki [24]

Answer:

The Ariana's accounting profit for the year was $6,000

Explanation:

Accounting Profit : The accounting profit is that profit which records the difference of total revenues and total direct cost.

Where,

Total revenues includes sales revenues

And total cost includes monetary cost, etc.

So,

Accounting profit = Total revenues - Total cost

where

Total revenues = 2,000 × $2.5 + 4,000 ×$2.5 = $15,000

Monetary cost = $9,000

So,

Accounting profit = $15000 - $9000 = $6,000

Hence, the Ariana's accounting profit for the year was $6,000

7 0

3 years ago

On July 1, Shady Creek Resort borrowed $350,000 cash by signing a 10-year, 8.5% installment note requiring equal payments each J

egoroff_w [7]

Answer:

$29,750

Explanation:

Given that

Borrowed amount = $350,000

Interest rate = 8.5%

The computation of interest expense is shown below:-

Interest expense in the first annual payment = Borrowed amount × Interest rate

= $350,000 × 8.5%

= $29,750

Therefore, for computing the interest expense in the first annual payment we simply multiply borrowed amount with interest rate.

7 0

2 years ago

1. In the case, the court focused on the language of the contract. In the contract, the Desses agreed to fully disclose all info

Reil [10]

Answer:

Yes

Explanation:

The Desses would have had a stronger argument if the contract was silent in this way because it would have been less likely that there was a designated class of third-party beneficiaries under the contract.

Cheers

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3 years ago

Read 2 more answers

All of the following are true regarding implied agreements EXCEPT which one?

Brrunno [24]

Answer:

An implied agreement is based on a formal agreement.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implied contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, executory contract, etc.

Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.

Simply stated, mutual assent connotes agreement, acceptance and consent to a contract by both parties.

An implied contract can be defined as an informal contract that exists based on an assumption or understanding between two or more parties, rather than on terms that are formally and specifically defined.

This ultimately implies that, an implied agreement is not based on a formal agreement but on assumptions or understanding between the parties involved.

4 0

2 years ago