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iragen [17]
3 years ago
10

Suppose that for a particular firm the only variable input into the product process is labor and that output equals zero when no

workers are hired. In addition, suppose that marginal cost of the third worker hired is $40, and the average total cost when three workers are hired is $50. What is the total cost of production when three workers are hired?
Business
1 answer:
natulia [17]3 years ago
4 0

Answer: The correct answer is <u>$150.</u>

Explanation:  

We know that the marginal cost of hiring a third worker is $ 40. And that the average total cost when 3 workers are hired is $ 50. The average total cost formula is:

Average total cost = (total cost) ÷ (number of workers)

Then we solve the equation in 3 steps:

1) $ 50 = X ÷ 3

2) $ 50 × 3 = X

3) $ 150 = X

We can diagram the workers cost chart

Number of workers - Marginal cost - Total cost

              1                -         $60         -     $60

              2               -         $50         -     $110  

              3               -         $40         -     $150

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Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the product
jek_recluse [69]

Answer:

Product 1  - $36

Product 2 -  $ 96  

Product 3  -  $66

Explanation:

The accounting standard for Inventory under IFRS IAS 2 requires that inventory be recognized at cost which includes all the cost incurred to bring the item of inventory to a state or place where the item of inventory becomes available for sale.

These costs includes cost of purchase, freight, Insurance cost during transit etc.  

Subsequently, inventory is to be carried at the lower of cost or net realizable value.

The NRV is the Selling price less the cost to sell.

Given

                             Product 1       Product 2        Product 3

Cost                            $36              $ 106              $ 66

Selling price               $ 88              $ 168             $ 118

Costs to sell                $ 9                $ 72              $ 26

NRV                             $ 79               $ 96              $ 92

6 0
3 years ago
On May 7, Keenan Company purchased on account 620 units of raw materials at $21 per unit. During May, raw materials were requisi
a_sh-v [17]

Answer:

Dr Material Inventory $13,020

Cr               Trade Payables $13,020

Dr Work In Progress $9,742

Cr Material Inventory       $9,742

Explanation:

On 7th May the double entry would be to record the inventory purchases on credit which would increase the inventory by $13,020 (620*21) as under:

Dr Material Inventory $13,020

Cr               Trade Payables $13,020

The material sent to production or manufacturing team would be recorded as increase in the work in progress by the value of the material issued which is $9,742 (211*$19 + 273*$21).

Dr Work In Progress $9,742

Cr Material Inventory       $9,742

8 0
3 years ago
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
Orlov [11]

Answer: $54,000

Explanation:

Referring to the data regarding store operation given above, difference between cash receipt and cash disbursement for December could be calculated as follows;

December Cash receipt = (340,000*20%+320,000*80%) = 324,000

November Purchases = (340,000 × 75%)+(320,000 × 75% × 60%) - 153,000 = 246,000

December Cash payment = 246,000 +240,000 = 270,000

The difference between cash receipts and cash disbursement for December = 324,000 - 270,000 = 54,000

6 0
3 years ago
Read 2 more answers
Baseball Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $19,500. Budgeted cash rec
Mice21 [21]

Answer:

$12,500

Explanation:

Budgeted cash receipts refer to the money that the company expects to receive in a specific period of time.

Budgeted cash disbursements are the payments that the company expects to make in a specific period of time.

$19,500+190,500-191,000= 19,000

Then, you have to subtract 19,000 from 31,500 to determine the amount that the company needs to attain its desired ending cash balance:

31,500-19,000= 12,500

According to this, the company should borrow $12,500.

4 0
3 years ago
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Natali5045456 [20]

Answer: Registered Bonds

Explanation:

A registered bond is one that has the owner's name and contact information recorded by the issuer so as to ensure that interest payments depending on the bond terms  are rightly given out and also  to track claims to coupons.The two ways bonds can be registered and transferred

1. Physically by printing owners details at the back of the certificate and BY signing or endorsing a certificate during transfer of bonds,

2. Electronically  bY recording on a system database for ownership claim and for transfer of bonds.

The opposite of a Registered bond is a Bearer bond, Here, the owner"s details and information are not recorded.

4 0
3 years ago
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