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Paraphin [41]
3 years ago
6

The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor,

(c) manufacturing overhead, and (d) period costs.
Business
1 answer:
postnew [5]3 years ago
7 0

Answer:

Property taxes on the factory building - period costs.

Property taxes are period costs because it is a cost associated with a particular period of time (tax season), and because this cost cannot be capitalized in inventory, fixed assets, or prepaid expenses.

Production superintendents’ salaries - period costs.

The salaries of management workers such as superintendents are period costs because they are not direct labor.

Memory boards and chips used in assembling computers - direct materials.

The memory boards and chips are direct materials used to assemble the computers, therefore, they are a direct materials cost.

Depreciation on the factory equipment - period costs.

Depreciation is a period cost because it cannot capitalized in fixed assets, since it actually reduces the value of those.

Salaries for assembly-line quality control inspectors - period costs.

Inspectors and supervisors are part of lower-management, and as result, their salaries are also considered period costs.

Sales commissions paid to sell laptop computers - period costs.

A sale commission is a period cost because it is a selling expense. The comission is an incentive for sellers to perform better, by it is not in itself a part of the cost of goods sold.

Electrical components used in assembling computers - direct materials.

The electrical components are used to assemble the computers, therefore, they represent a direct materials cost.

Wages of workers assembling laptop computers - direct labor.

The workers are directly making the computers, without them, the computers could not be assembled. Therefore, their wages are a direct labor cost.

Soldering materials used on factory assembly lines - manufacturing overhead.

The assembly line is needed to make the goods, but it is not in itself a part of the good. Besides, the cost of running the assembly line does not depend directly on the number of goods produced. It varies relatively close to that number, but the relation is not exact, and linear. Therefore, these soldering materials are manufacturing overhead.

Salaries for the night security guards for the factory building - period costs.

Night security guards are an administrative cost. They are not necessarily needed to produce the goods, they are hired to protect the factory's security. And administrative costs are considered period costs.

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Poseidon Co. holds 70% of the common stock of Saturn Co. In the current year, Poseidon report sales of $2,400,000 and cost of go
UkoKoshka [18]

Answer:

<u>Consolidated sales and cost goods sold would be:</u>

Revenue : $3,000,000

Cost of Sales : $2,040,000

Explanation:

The Consolidation Process Includes 100% of Poseidon Co. and 100% of Saturn Co.

However Revenues for Saturn is Overstated and Cost of Goods Sold of Poseidon Co. are overstated due to the intragroup sale and thus the sale should be eliminated.

<u>Journal to Eliminate Intragroup Sale</u>

Revenue : Saturn Co $300,000 (debit)

Cost of Sales : Poseidon Co $300,000 (credit)

<u>Consolidated sales and cost goods sold would be:</u>

Revenue : $2,400,000+$900,000-$300,000 = $3,000,000

Cost of Sales : $1,800,000+$540,000-$300,000 = $2,040,000

7 0
3 years ago
Page(s) 39-41 2.3. What are the benefits of specialization and trade? In one month, Mikhail’s Furnishings can make 160 carpets o
Amanda [17]

Answer:

Mikhail's gains 10 carpets and 10 quilts from the trade. Dominique's also gains 10 carpets and 10 quilts from the trade.

Step-by-step Explanation:

Step 1: Capacity

Mikhail's can make 160 carpets or 160 quilts per month.

Dominique's can make 120 carpets or 200 quilts per month.

Step 2: Before Trade

Mikhail's makes 80 carpets and 80 quilts per month.

Dominique's makes 60 carpets and 100 quilts per month.

Step 3: After Trade:

Mikhail's makes 160 carpets per month.

Dominique's makes 200 quilts per month.

Trade = 70 carpets for 90 quilts.

Mikhail's now has 160 - 70 = 90 carpets and 90 quilts.

Dominique's now has 70 carpets and 200 - 90 = 110 quilts

Step 4: Gains from Trade:

Mikhail's gains 90 - 80 = 10 carpets and 90 - 80 = 10 quilts from trade.

Dominique's gains 70 - 60 = 10 carpets and 110 - 100 = 10 quilts from trade.

8 0
3 years ago
More than 99% of all U.S. firms are classified as small businesses, and they employ about half of private workers. A small busin
V125BC [204]

Answer:

A

Explanation:

5 0
3 years ago
In the economy of Ukzten in 2010, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $2000, a
Blababa [14]

Answer:

I= $1,600

Explanation:

We have to clear Investment from the GDP formula:

GDP= Consumption (C)+ Investment (I)+ Government expenditure (G)+ Net exports (exports-imports)

I=GDP-G-C-(X-M)

The problem gives this information:

GDP: $10,000

G: $2,000

C: $6,000

X: $1,000

M: $600

I= $10,000-$2,000-$6,000-($1,000-$600)

Investment in 2010=$1,600

7 0
2 years ago
Janet planned to purchase a McDonald's franchise. Meanwhile, Jason decided to open his own sandwich shop. Both decided to financ
Fantom [35]

Answer:

The correct answer is Banks view franchises as having fewer risks than other start-up businesses.

Explanation:

Franchising as an investment opportunity offers great advantages over other systems, this is an attractive alternative to develop a business; However, it will always be necessary to consider the pros and cons, before making a decision to franchise my business or not.

When I evaluate the possibility of franchising my business I have to be willing to assume a greater or lesser risk, that is, I am free to choose how much risk I am willing to accept in the development of my business model under the franchise scheme, and it is precisely this knowledge of the situation, which allows us to make the best decision about whether to expand my business (and under what conditions) or on the contrary wait for the business model to be at a more advanced stage of maturity before starting a project of franchise development.

4 0
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