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pickupchik [31]
3 years ago
15

A farmer buys seed for 20 cents that is used to grow wheat. The farmer sells the wheat to the miller for 35 cents, and the mille

r makes flour, which is then sold to the baker for 55 cents. The baker makes bread and sells it to the grocer for 80 cents, and the grocer sells the bread to a family for $1. What is the value added of the baker and what is the sum of the value added at each stage of production
Business
2 answers:
storchak [24]3 years ago
7 0

Answer:

The Value added of the Baker is $0.25

The sum of the value added at each stage of production is :

Farmer = $0.15

Miller = $0.20

Baker = $0.25

Grocer = $0.20

Total Value added = $0.80

Explanation:

Farmer cost = $0.20

Farmer Margin = $0.15

Farmer Sells to Miller = $0.35

Miller Margin = $0.20

Miller sells to Baker = $0.55

Baker Margin = $0.25

Baker sells to Grocer = $0.80

Grocer Margin = $0.20

Grocer sells to Family = $1.0

The concept of Value added states that a product receives extra features from the beginning of its production cycle to when it gets into the hands of its final consumers. The process of it being handed down through the Value Chain results in changes in Prices between the Input Costs and selling Prices. This difference is identified as Value added.

In this question, the Farmer added Value by turning a seed of wheat to a harvest of wheat which he sold to the Miller. The Miller further added Value by transforming the wheat into flour and selling this to the Baker. The Baker  adds value by producing a product the consumer needs and selling to the Grocer, in his case bread. The Grocer added value by making it available on the shelf and within the neighborhood of the consumer.

This is how value is added. And it varies per product and per channel of distribution too.

barxatty [35]3 years ago
6 0

Answer:

What is the value added of the baker and what is the sum of the value added at each stage of production?

  1. the value added by the baker is $0.25
  2. the total value added is $1

Explanation:

seed producer adds = selling price = $0.20

farmer adds = selling price - cost of seeds = $0.35 - $0.20 = $0.15

miller adds = selling price - cost of wheat = $0.55 - $0.35 = $0.20

baker adds = selling price - cost of flour = $0.80 - $0.55 = $0.25

grocer adds = selling price - cost of bread = $1 - $0.80 = $0.20

total value added = $0.20 + $0.15 + $0.20 + $0.25 +$0.20 = $1

The value added method simply adds the contribution of every sector in the economy to the GDP. The total value added will always equal the final price of the goods and services sold.

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Answer:

Supplies should be recorded as an expense when it is used up during an accounting period.

Explanation:

Supplies which is also refers to as office supplies can be described as consumables and equipment which are used from time to time by company. Examples of office supplies include printer paper, pencils, notebooks, binders, pens and among others.

When supplies are bought before they are used, they are recorded as office supplies by adding them to office supplies on hand at the beginning of to obtain total supplies for an accounting period under the current asset in the balance sheet. Any part of the office supplies used up during an accounting period is recorded an expense during that accounting period in the income statement. The part used is deducted from the total supplies obtained supplies on hand at the an accounting period to be recorded under the current asset in the balance sheet.

Therefore, supplies should be recorded as an expense when it is used up during an accounting period.

7 0
3 years ago
The Charade Company is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable fac
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Answer:

the total budgeted factory overhead for November is : 2) $110,000.

the budgeted direct labor hours for December must be : 3) 9,000 hours.

total budgeted factory overhead per direct labor hour is : 1) $14.38

Explanation:

To determine the budgeted factory overhead for November, prepare a budgeted factory overhead for November as follows :

<u>November</u>

Budgeted Variable factory overhead ($5.00 × 7,000 hours)  = $35,000

Budgeted Fixed factory overhead                                             = $75,000

Total budgeted factory overhead                                              = $110,000

<u>December</u>

Total Cash Disbursements                                                         = $105,000

Less Budgeted Fixed factory overhead  ($75,000 - $15,000) =  $60,000

Budgeted Variable factory overhead                                        =   $45,000

Therefore, budgeted direct labor hours = $45,000 / $5.00

                                                                  = 9,000 hours.

<u>December</u>

Budgeted Variable factory overhead ($5.00 × 8,000 hours)  = $40,000

Budgeted Fixed factory overhead                                             = $75,000

Total budgeted factory overhead                                              = $115,000

Therefore, total budgeted factory overhead per direct labor hour = $115,000 / 8,000 hours = $14.375

Which is $14.38 (rounded)

                                                               

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neonofarm [45]

Answer:

The correct answer is letter "A": Merchandise Inventory.

Explanation:

Lower-of-cost-or-market value is a strategy by which the costs of inventory on the company's Balance Sheet is reported at historical value -purchase cost- or market value, whatever it is lower. The lower-of-cost-or-market approach considers the value of inventory can change, meaning it can increase but it can decrease as well. For both purposes, the lower-of-cost-or-market value can be used. This technique follows the Generally Accepted Accounting Principles (GAAP).

Therefore, <em>merchandise inventory, which can fluctuate in price during a period, is reported using the lower-of-cost-or-market value method.</em>

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In this scenario, there is a high degree of social risk for Weston.

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That act that has impacts on the people surrounding a person refers to social risk. The adverse effects that are caused as a result of actions of a particular person refer to social risk. Some of the examples of social risks include issues associated with labours, corruptions, etc. Most important things that are the result of social risk is the health related hazards.

Social risk also associates with the way the people treats the other based on certain criteria’s. In the given example Weston is driving a car that was presented as a gift by his father a long time ago. But as a partner of a law firm he thinks that others will disrespect him because of the car he drives. In this scenario, Weston has high degree of social risk.

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