Operation management refers to the task of managing the process that transforms resources into finished goods and services. The key elements of an operation system includes Inputs, processes and outputs. Inputs are the resources necessary to make the product, processes are action performed on the inputs to transform them into finished products while outputs are finished products that results when inputs are processed. Therefore, in this case regulation is not a key element in operation function.
Answer:
Yankee = 66,900 units
Zoro = 156,100 units
Explanation:
<em>Break Even Point = Fixed Costs / Contribution per unit</em>
= $23,415,000 / ((3×$175) + (7×$75))
= $23,415,000 / $1,050
= 22,300
Yankee = 22,300×3
= 66,900
Zoro = 22,300×7
= 156,100
Answer:
(a) Net income is $490,000
(b) Please Journal entries as solved below;
Explanation:
(a)Please see computation of net income below;
Net income = Income before income tax - Tax rate.
=$700,000 - ($700,000 × 30%)
= $700,000 - $210,000
=$490,000
Net income is therefore $490,000.
(b) Please see journal entries below.
Construction in process Dr $190,000
To deffered tax liability
$57,000
$190,000 × 30%
To retained earnings
$133,000
$190,000 × (100-30)%
$190,000 × 70%
(Being adjusted entry that is recorded.)
Answer:
During a period of inflation, Mast’s ending inventory and income tax payable will be higher using LIFO than FIFO.
Explanation:
In a period of inflation the closing inventory will be higher because of increase in price. In LIFO the oldest unit is sold first and the last purchased remains in the inventory. So Closing inventory is higher which decrease the Cost of goods sold and Increase in profit and ultimately Increase in Taxes as well. In FIFO the Newest unit is sold first and the oldest unit purchased remains in the inventory. So closing inventory is lower which increase the Cost of goods sold and decrease in profit and ultimately decrease in Taxes as well.
