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3 years ago

Orion Flour Mills purchased a new machine and made the following expenditures:

Business

1 answer:

MatroZZZ [7]3 years ago

8 0

Answer:

Orion Flour Mills Journal entry

Dr Equipment 62,400

Dr Prepaid Insurance 500

Cr Cash 2,900

Cr Accounts Payable 60,000

Explanation:

Calculation for cost of equipment

Purchase price 55,000

Add: Sales tax 5,000

Add: Shipment of machine 800

Add: Installation 1,600

Total Cost of Equipment 62,400

Calculation for Cash

Shipment of machine 800

Add Insurance on the machine for the first year 500

Add Installation 1,600

Total Cash 2,900

Calculation for Accounts Payable

Purchase price 55,000

Add: Sales tax 5,000

Total Account payable 60,000

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A social relationship would include your co-workers and friends?

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3 years ago

Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the

LiRa [457]

Answer:

Results are below.

Explanation:

Giving the following information:

Units Produced Total Costs

101,500 $28,022,500

118,500 30,997,500

131,500 33,272,500

To calculate the fixed and variable costs, we need to use the high-low method:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (33,272,500 - 28,022,500 ) / (131,500 - 101,500)

Variable cost per unit= $175

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 33,272,500 - (175*131,500)

Fixed costs= $10,260,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 28,022,500 - (175*101,500)

Fixed costs= $10,260,000

Now, the total cost for 115,000 units:

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Total cost= $30,385,000

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3 years ago

Ferkil Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed expenses total $63,000 per

pshichka [43]

Answer:

Break-even point= 11,500 units

Explanation:

Giving the following information:

Selling price= $20.00 per unit.

Fixed expenses= $63,000 per year.

Break-even point= 9,000 units to break even.

Desired profit= $17,500

First, we need to calculate the unitary variable cost:

Break-even point= fixed costs/ contribution margin

9,000= 63,000 / (20 - unitary variable cost)

9,000*20 - 9,000x= 63,000

180,000 - 63,000= 9,000x

117,000/9,000=x

13= unitary variable cost

Now, we can calculate the number of units:

Break-even point= (fixed costs + desired profit) / contribution margin

Break-even point= (63,000 + 17,500) / (20 - 13)

Break-even point= 11,500 units

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3 years ago

Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Co

Margaret [11]

Answer:

261,690

Explanation:

The computation of inventory is shown below:-

Particulars Cost Retail Cost-to-Retail Ratio

Beginning inventory $250,000 $286,000

Add Purchases $672,000 $888,000

Freight-in $14,000

Net markup $26,000

Total $936,000 $1,200,000

Less: Net markdowns $4,500

Goods available for sale $1,195,000

Cost-to-retail percentage 0.78 (in working note)

Less: Net sales $860,000

Retail Estimated ending

inventory $335,500 ($1,195,000 - $860,000)

At cost Estimated ending

inventory $261,690

Cost-to-retail percentage is

= 936,000 ÷ 1,200,000

= 0.78

Estimated ending inventory at cost is

335,500 × 0.78

= 261,690

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3 years ago

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hammer [34]

Answer:

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3 years ago

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