Answer:
B. $53,600
Explanation:
beginning 0
completed 8,000
WIP 2,000 at 100% materials 50% conversion cost
<u>Materials </u>
Equivalent Units units complete + complete portion of ending WIP
8,000 + 2,000 x 100% = 10,000
Cost per unit 27,000/10,000 = 2.7
<u>Conversion cost</u>
Equivalent Units units complete + complete portion of ending WIP
8,000 + 2,000 x 50% = 9,000
Cost per unit 36,000/9,000 = 4
<u>Total cost per equivalent unit </u> Materials + CC
2.7 + 4 = 6.7
Transferred-out
8,000 x 6.7 = 53,600
Answer:
The adjustment is:
Debit Unrealized Loss Account with $4,000
Credit Trading Debt Fair Value Adjustment Account with $4,000.
Explanation:
Held for trading assets are form of investment that an entity holds for the purpose of selling them within a short term period. The changes in these investments are recognized in the statement of comprehensive income for the period and are taken to fair value adjustment account.
The accounting entries to pass for each event are listed below:
Increase in market value: Debit the asset fair value adjustment account
Credit the unrealized gain account.
Decrease in market value: Credit the asset fair value adjustment account
: Debit the unrealized loss account.
In the case of Littlefield industries, there was a loss of $4,000 ( $200,000 - $196,000). So the fair value adjustment account will be credited with $4,000 to bring the investment value down to $196,000 and a corresponding debit entry will be recognized as unrealized loss and transfer to income statement for the year.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Total fixed expenses $832,500
Sale price per unit 40
Variable expenses per unit 25
If the company spends an additional $30,000 on advertising, sales volume would increase by 2,500 units.
Effect on income= 2,500*(40 - 25) - 30,000= $7,500
Answer:
D. Issue new stock and then use some of the proceeds to purchase additional inventory and hold the remainder as cash.
Explanation:
A company can strengthen it's financial position by issuance of new stock and then use some of the proceeds to purchase additional inventory and hold the remainder as cash