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zaharov [31]
3 years ago
11

Sterling Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in

the spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 200 boats at a total cost of $720,000. The low point in production occurred in January when it produced 100 boats at a total cost of $450,000. Required Use the high-low method to estimate the amount of fixed cost incurred each month by Sterling Boat Company. Determine the total estimated cost if 150 boats are made.
Business
1 answer:
nataly862011 [7]3 years ago
4 0

Answer:

$585,000

Explanation:

Using high-low method

Variable cost = Total cost (high activity) - Total cost (low activity) / Highest activity unit - Lowest activity unit

Variable cost = 720,000 - 450,000 / 100

Variable cost = 270,000 / 100

Variable cost = 270

Variable cost = Cost - Fixed cost

Now 720,000 = (200) * 2,700 - Fixed cost

- FIxed cost = 540,000 - 720,000

- Fixed cost = -180,000

Fixed cost = 180,000

Now Cost for 150 = 2,700 (150) + 180,000

= 405,000 + 180,000

= $585,000

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A purchasing consortium:
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Answer:

a. consists of two or more independent organizations that combine their requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers.

Explanation:

A purchasing consortium consists of two or more independent organizations that combine their requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers. It is also known as group purchasing organization or cooperative purchasing and typically comprises of organizations sharing similar purchasing requirements or needs coming together in order to enhance their purchasing or bargaining power (capabilities) in the market.

The main purpose of a purchasing consortium is to provide a leverage for two or more independent organizations by reducing their purchasing costs when acquiring resources or materials required for the smooth operation of their business.

4 0
3 years ago
On June 1, 2017, Pharoah Company was started with an initial investment in the company of $22,350 cash. Here are the assets, lia
guapka [62]

Answer:

                            Pharaoh Company

                             Income statement  

                 For the year ended June 30, 2017  

Revenue & Gains                                              Amount

Service Revenue                                               $7,910

Total revenue & gains (A)                                 $7,910

Expense and losses:

Salaries and wages expense         $1,810

Advertising expense                       $400

Supplies expense                            $2,370

Utilities expense                              $270

Maintenance and repair expense  $630

Total expense (B)                                            <u>$5,480</u>

Net Income (A - B)                                          <u>$2,430</u>

6 0
3 years ago
Which statements are true about assessing the effectiveness of a strategic plan?
malfutka [58]
The answer is a manager should search diligently for ways the strategy can be improved
8 0
3 years ago
For the year ended December 31, Depot Max's cost of goods sold was $56,900. Inventory at the beginning of the year was $6,540. E
il63 [147K]

Depot Max's inventory turnover for the year is 8.3

Given

Cost of goods sold = $56900

Begining Jovenstory = $6540

Ending Inventory = $7250 .

Average inventory = opening inventory + closing inventory  / 2

= $6 540 + $-7250 / 2

Average inventory = $6895

cost of goods old

.: Inventory turnover = cost of goods sold / Average inventory

56900 / 6895

= 8. 252 times

He Depot Max's Inventory 8.3 times (approx ).

Learn more about turnover here: brainly.com/question/25623677

#SPJ4

3 0
2 years ago
The following account appears in the ledger prior to recognizing the jobs completed in January: Work in ProcessBalance, January
exis [7]

Answer:

Year-end WIP 62,200

jounral entry for completed jobs:

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

Finished Good Inventory   1,149,800 DEBIT

  WIP inventory                              1,149,800 CREDIT

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

Explanation:

<u>WIP </u>

Beginning  $     72,000

Materials    $   390,000

Labor          $   500,000

Overhead   <u>$   250,000</u>

Total WIP    $  1,212,000

<u />

<u>Finished Jobs:</u>

Job 210  $  200,000

Job 224 $  225,000

Job 216  $  288,000

Job 230 <u>$  436,800</u>

Total       $ 1,149,800

the jobs complete will move to finished good and credit WIP inventory

WIP year-end:

1,212,000 - 1,149,800 = 62,200

7 0
3 years ago
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