Which response might be an answer to a fundamental question of economics of how much should be produced ?

Primare Corporation has provided the following data concerning last month’s manufacturing operations.

musickatia [10]

Explanation:

Primare Corporation

Cost of Goods Manufactured

Beginning work-in-process inventory $56,000

Manufacturing costs:

Direct materials:

Beginning inventory $12,000

Purchases $30,000

Materials available $42,000

Less: Ending inventory -$18,000

Direct materials used $24,000

Less:Indirect materials included in manufacturing overhead -$5,000

Other manufacturing costs

Direct labor $58,0000

Manufacturing overhead applied to work in process $87,000

Less: Ending work-in-process $65,000

Cost of goods manufactured $155,000

b. Primare Corporation

Cost of Goods Sold

Beginning finished goods inventory $35,000

Add: Cost of goods manufactured $155,000

Finished goods available for sale $190,000

Less: Ending finished goods inventory -$42,000

Unadjusted cost of goods sold $148,000

Add: Under applied overhead $4,000

Cost of goods sold $152,000

5 0

3 years ago

Jing Company was started on January 1, Year 1 when it issued common stock for $36,000 cash. Also, on January 1, Year 1 the compa

san4es73 [151]

Answer:

$716 and $12,300

Explanation:

Original Cost = $16,000 + $2,100

Original Cost = $18,100

Double decline rate = 100/5*2

Double decline rate = 40%

First Year Depreciation = $18,100*40%

First Year Depreciation = $7,240

Second Year Depreciation = $18,100*60%*40%

Second Year Depreciation = $18,100*0.60*0.40

Second Year Depreciation = $4,344

Third Year Depreciation = ($18,100 - $7,240 - $4,344 -$5,800)

Third Year Depreciation = $716

Accumulated Depreciation = $7,240 + $4,344 + $716

Accumulated Depreciation = $12,300

5 0

3 years ago

Newtech inc. hires john for the position of a software programmer to work on their new project. salary paid to john by newtech i

lakkis [162]

The answer is C. Direct costs.

Hope this helps

7 0

3 years ago

For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising e

beks73 [17]

Answer:

Total Selling Expenses for the month of February is $241,000

Explanation:

Sales Commissions ($700,000 of sales x 5%) = $35,000

Sales Manager Salary = $96,000

Advertising expenses = $90,000

Shipping expenses = ($700,000 of sales x 2%) = 14,000

Miscellaneous selling expenses = ($2,500 + $700,000 x 1% x 0.5) = $6,000

Total Selling Expenses (Summation of all the calculated above working)= $241,000

5 0

3 years ago

Ted, a project manager, wants to invest in a project with an initial cost of $58,500 and cash flows of $32,400 and $38,500 in Ye

Art [367]

Answer:

The project will not be approved

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Cash flow in year 0 = $-58,500

Cash flow in year 1 = $32,400

Cash flow in year 2 = $38,500

IRR = 13,41%

profitability index = 1 + (NPV / Initial investment)

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-58,500

Cash flow in year 1 = $32,400

Cash flow in year 2 = $38,500

I = 10%

NPV = $2,772.72

PI = 1 + $2,772.72 / $58,500 = 1.04

The project will not be approved because the PI is less than the amount of return the boss wants even though the IRR is less than the discount rate

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

4 0

3 years ago