All categories

3 years ago

PB4.

Business

1 answer:

harkovskaia [24]3 years ago

4 0

Answer:

The process cost summary is given below.

A-Total Material Cost = $22,500

B-Total Conversion costs = $95,625 (45,625+50,000)

C-Units transferred out = 40,000

D-Ending Inventory = 10,000

E-Equivalent units of material = 45,000

F-Equivalent units of conversion costs = 42,500

G-Equivalent cost per unit of material = $0.5 (A/E)

H-Equivalent cost per unit of conversion costs = $ 2.25 (B/F)

I-Equivalent cost per unit = $2.75 (G+H)

J-Cost of inventory transferred = $ 110,000 (I*C)

K-Cost Of Ending Inventory = $ 8,125 (H*(F-C) + (5000*0.5))

You might be interested in

C. Forex trading is a very popular investment in Malaysia due to low barriers of entry. There are also many online trading platf

frez [133]

Answer:

what that this answer ⁉️

5 0

2 years ago

High inflation in the United States would most likely have a negative impact on

Alexxx [7]

Answer:

The correct answer is option A.

Explanation:

High inflation will cause an adverse effect on the exchange rate. However, the low inflation rate does not have a positive effect on the value of currency and exchange.

Inflation rate affects the rate of interest which has an effect on the exchange rate. The relationship between the interest rate and inflation is complex and difficult to manage.

Lower interest rates are likely to lower the cost of borrowing. As a result, there is an increase in investment and production. This increases aggregate demand and thus price level.

But lower interest discourages foreign investment, the demand for domestic currency falls.This shift the currency demand curve to left decreasing the interest rate.

5 0

3 years ago

Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2020, for $347,200 in cash. Th

Goshia [24]

Answer:

Kinman Company 272,000 debit

Royalties Kinman Co 54,000 debit

Building Kinman Co 21,200 debit

Cash 347,200 credit

--to record the purchase--

sales revenue 9,960 debit

account receivables 9,960 credit

inventory 6,972 debit

cost of goods sold 6,972 credit

--to record the unsold part of the inventory in Kinman--

Cash 6,000 debit

Kinman Company 6,000 credit

-- to record dividends--

loss on investment 18,240 debit

retained earnings 9,680 debit

Kinman Company 27,920 credit

--to record net loss of Kinman--

Explanation:

60% of Kinman Company:

680,000 x 40% = 272,000

Excess in Market value of building:

117,800 - 64,800 = 53,000

53,000 x 40% = 21,200

Royalty agreement market value: 135,000

135,000 x 40% = 54,000

Total Value:

272,000 + 21,200 + 54,000 = 347,200

now, we must "unrecord" the unsold part of the inventory of Kinman as it is now considered a intra-entity transaction.

Sales Revenue:

24,900 x 40% = 9,960

Cost of Good Sold:

77,700 x 24,900/111,000 x 40% = 6,972

Dividends: they are not considered gain but a distribution of cash from Kinman to us.

15,000 x 40% = 6,000

Losses impact the equity thus, decrease the Kinman Company account

45,600 + 24,200 = 69,800

69,800 x 40% = 27,920

The comprehensive loss will directly decrease retained earnigns rather a loss directly.

45,600 x 40% = 18,240

24,200 x 40% = 9,680

The rest of the transactions occurs in 2021 and we are only asked for 2019/2020

4 0

2 years ago

What are the two methods used to translate financial statements and how does the functional currency play a role in determining

laiz [17]

Answer:

The two methods of translating financial statements are the current rate method/closing rate method and the temporal method

Explanation:

Functional currency simply means the main currency used by a business. it could also be defined as the primary currency used in the economic environment in which a business operates as in where it generates most of its cash and also spends it

Functional currency determines to a large extent the method used in translation of financial statements. When there is no difference between local currency and foreign currency, current rate method is used and vice versa for temporal rate method

please find attached from Advanced Accounting

Hoyle, J., Schaefer, T., & Doupnik, T. (2015)

8 0

3 years ago

Mint Co.'s cash balance in its balance sheet is $1,300,000, of which $300,000 is identified as a compensating balance. Additiona

Natasha2012 [34]

Answer:

Correct option is B Yes and Yes

Yes - Compensating shall be reported, And Restricted shall also be reported.

Explanation:

Compensating balance is the minimum balance to be maintained in the company's bank account as this is used by bank for offsetting loan, and used by company to set up the loan amount.

Restricted balance is a choice made by the company to not use the funds and use it later for company's growth or future projected, but still since it cannot be used it shall also be reported accordingly.

Therefore the company has the need to report such restricted balance also and compensating balance has to be reported as well.

Therefore correct option is B

Yes - Compensating shall be reported, And Restricted shall also be reported.

7 0

3 years ago