Answer:
The cost of goods sold (income statement) should include 1 unit purchased on April 5 at $10.
The merchandise inventory account (balance sheet) should include the 4 units purchased later including their purchase date and specific cost:
- 1 unit purchased on April 10 at $12
- 1 unit purchased on April 15 at $14
- 1 unit purchased on April 20 at $16
- 1 unit purchased on April 20 at $17
Answer:
a. $392, 265
Explanation:
Given that:
i. Purchasing department, overhead allocation rate is $77 per purchase order.
ii. Assembly department, overhead allocation rate is $5 per part.
iii. Packaging department, overhead allocation rate is $4 per unit.
iv. Direct material cost is $70 per unit.
v. Each stereo has 50 parts.
Total parts required = 1200 x 50
= 60000
vi. 45 purchase order was required for 1200 stereos.
Thus:
i. $77 x 45 = $3465
ii. $5 x 60000 = $300000
iii. $4 x 1200 = $4800
iv. $70 x 1200 = $84000
Therefore,
total cost for 1200 stereos = $3465 + $300000 + $4800 + $84000
= $392, 265
Answer:
9.37
Explanation:
The computation of LCL for a control chart is shown below:-
Sample Obs 1 Obs 2 Obs 3 Obs 4 Mean observation Range
1 10 12 12 14 12 4
2 12 11 13 16 13 5
3 11 13 14 14 13 3
4 11 10 7 8 9 4
5 13 12 14 13 13 2
For computing the mean observation and range we will use the below formulas
Mean observation = ( Obs 1 + Obs 2 + Obs 3 + Obs 4) ÷ 4
Range = Highest value - Lowest value
= ( 12 + 13 + 13 + 9 + 13 ) ÷ 5
= 12
= ( 4 + 5 + 3 + 4 + 2 ) ÷ 5
= 3.6
Since we found the value of A2 with the help of constants table for control charts for a 4 subgroup size.
A2 = 0.729
12 - 0.729 × 3.6
= 9.37
Answer: a. The firm must purchase lumpy assets to achieve the increase in sales.
Explanation:
EvenFlo Pipes needs to sell more pipes in order to see an increase in sales. Assuming they are the producers, they will need to produce more pipes than they have been doing and this will need them to increase their production capacity.
To do so they would have to invest in fixed assets as these are what produce pipes. This is why the firm will have to purchase lumpy assets that will help them produce and sell more pipes.
Answer:
The land basis will be $8,000 and partnership basis will be $42,000.
Explanation:
The outside basis at the end of the year is $56,000.
The cash basis is $6,000.
The fair value of land is $14,000.
The land basis to RF is $8000.
The partnership basis will be
=Outside basis-cash basis-land basis
=$(56,000-6,000-8,000)
=$42,000.
So, the land basis will be $8,000 and partnership basis will be $42,000.
