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3 years ago

How does the law of supply and demand operate?

1 answer:

8 0

When supplies of goods and service are plentiful, the prices usually drop but when they are scarce, prices start rising.

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Tentacle Television Antenna Company provided the following manufacturing costs for the month of June. Direct labor cost Direct m

Temka [501]

Answer:

C. $65,800

Explanation:

Fixed csot: those which do not change for a relevant range with the production output. They aer constant.

Factory insurance 21,000

Factory insurance 13,000

Factory manager's salary 10,800

Janitor's salary 5,000

Property taxes: <u> 16,000 </u>

Total Fixed Cost: 65,800

The direct materials and direct labor are variable cost as they drop to zero if no unit is produced.

Same goes with packaging cost, if no unit is produced then, no packagin is needed.

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3 years ago

Gulshan Parvana operates a machine shop in Istanbul, Turkey. She places bids on small projects in the metropolitan area. Which o

vitfil [10]

Answer:

A) number of projects completed

Explanation:

As Gulshan Parvana is operating a machine shop which generate revenue based on the bids on small projects. So, the most suitable basis for the allocation of utility cost is number of projects completed in the month. This basis drives the utility cost. As revenue and cost are based on the number of bids on projects won and completed in the period is the most suitable basis for cost assignment.

7 0

3 years ago

Ellen loans Nicole $45,000 to start a hair salon. Unfortunately, the business fails in 2019 and she is unable to pay back Ellen.

Dahasolnce [82]

Answer:

c. $18,000, with $27,000 carried forward to 2020.

Explanation:

Non-business bad debts are accounted as short-term capital losses. Short-term and long-term capital gains may be offset by short-term capital losses. Ellen may offset $15,000 of her $45,000 bad debt from Nicole against the $15,000 capital gain from the sale of stock.

In addition, Ellen may claim up to the annual limitation amount of $3,000 in short-term capital losses. In total, $18,000 of the bad debt can be claimed as a capital loss in the current year with $27,000 in unused short-term capital losses carried forward.

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3 years ago

The 10% bonds payable of Crane Company had a carrying amount of $4060000 on December 31, 2020. The bonds, which had a face value

faust18 [17]

Answer:

The correct answer is "43,000".

Explanation:

The given values are:

Carrying amount,

= $4060000

Face value,

= $3900000

Now,

For June 30, 2021, the Interest expense will be:

= $4060000\times 10 \ percent\times \frac{1}{2}$

= $203,000$

For June 30, 2021, the cash interest will be:

= $3900000\times 8 \ percent\times \frac{1}{2}$

= $156,000$

Now,

On June 30, 2021, the premium's amortization will be:

= Interest expense - Cash interest

= $203,000-156,000$

= $47,000$

On retirement, the cash paid will be:

= $3900000\times 104 \ percent$

= $4,056,000$

On June 30, 2021, the less carrying amount will be:

= Carrying amount - amortization

= $4060000-47000$

= $4,013,000$

Then,

The loss on retirement as well as ignoring taxes will be:

= Cash paid - less carrying amount

= $4,056,000-4,013,000$

= $43,000$

6 0

2 years ago

Graphic Designs has 68,000 shares of cumulative preferred stock outstanding. Preferred shareholders are supposed to be paid $1.6

Anna35 [415]

Answer:

Graphic Designs

The firm will have to pay $6.40 per share next quarter.

Explanation:

a) Data and Calculations:

Number of cumulative preferred stock outstanding = 68,000

Preferred dividends per share = $1.60 per quarter

For four quarters, the preferred dividends per share = $6.40 ($1.60 * 4)

b) This will take care of the past three quarters that have accumulated and the fourth quarter. Note that when a company wishes to pay a common stock dividend, it must pay the cumulative preferred dividends first, no matter the length of period that the dividends have accumulated.

4 0

3 years ago