Total depreciation expense over an asset's useful life will be identical under all methods of

Mary's Mugs produces and sells various types of ceramic mugs. The business began operations on January 1, year 1, and its costs

vova2212 [387]

Answer:

Explanation:

a.

Direct Material cost per unit = Cost of Direct materials/ units produced = $3400/17000 mugs = $0.20 per mug

Direct material used per mug = 0.40 pounds

Direct material cost per pound = $0.20 / 0.40 = $0.50 per round

Direct material inventory = 3400 * $0.50 = $1700

b. Compute the finished goods ending inventory in units on December 31, year 1.

Finished Goods inventory (in units) = Finished goods inventory / manufacturing cost per unit

Manufacturing cost per unit = (Direct material + Direct Labour + Indirect manufacturing cost)/Units Produced

= ($3400+$25280+$1140+$4180)/17000 = $2 per unit

Finished Goods inventory (in unit) :

Year 1 = $6,000/$2 = 3000 units

c. Compute the selling price per unit.

Selling price per unit = Revenues / units sold

Units sold = Units produced - units in the ending finished goods inventory = 17000-3000 = 14000

Selling price per unit = $52,500/14000 = $3.75

d.Compute the operating profit (loss) for year 1

Operating income for the year :

Revenues $52,500

Cost of goods sold (14000*$2) (28000 )

-----------------------------------------------------------------

Gross Margin $24,500

Less marketing and administrative cost:

Variable cost ($2,350)

Fixed cost ($11,800)

-----------------------------------------

($14,150)

Operating Profit $10,350

7 0

3 years ago

Choose the statement about ITQs that is correct.

melomori [17]

Answer:

D. When ITQs are used, no one has an incentive to cheat and exceed the quota.

Explanation:

As ITQs (individual transferable quotas) were initially created by the government to regulate an above all, social affair, which is related to the share in the total allowable catch of fish (species).

Since some of the fishermen have lower and some have higher marginal costs of "producing" fish, they trade ITQ's between themselves, with those who have high marginal costs selling ITQs to those that have low marginal costs. Also, the marginal private cost now becomes determined by the initial marginal private cost of the fish, plus the <u>price of the ITQ</u>. Then, it becomes known as the marginal social cost.

The equilibrium for the ITQ price is the difference between the <em>marginal social benefit</em> and the marginal cost. With the base marginal private cost becoming the marginal social cost, no one has the incentive to exceed the quota, as that would make the marginal cost go higher than the price, and the marginal profit lower. This notion creates the equality between self-interest and social interest.

4 0

3 years ago

This resume format focuses on the task or skills that an applicant can preform :

Sveta_85 [38]

The correct answer is B.

There are a number of ways to format a resume. A functional resume focuses on the tasks or skills that the applicant can perform.

3 0

4 years ago

Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible? a. Kelly

Free_Kalibri [48]

Answer:

c.

Explanation:

Based on the scenario being described within the question it can be said that the statement that is not possible would be Kelly having a comparative advantage in repairing cars and in cooking meals. This is because a when having a comparative advantage you are better at something but at the same time you are giving up other opportunity costs. Therefore in this scenario Kelly can only have a comparative advantage at either repairing cars or cooking meals but not both.

3 0

3 years ago

Many farmers practice "crop rotation" by planting a field with corn one year and soybeans the next. why might they do this?

lisabon 2012 [21]

The reason that they do this because rotating crops has the capability of keeping the nitrogen from being depleted in the soil as nitrogen fixing bacteria are likely to be found in the nodules of the roots of the soybeans and not on the corn’s roots that makes soybeans the next after the corn is planted first.

8 0

3 years ago