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3 years ago

Some accountants argue that variances should be written off directly to cost of goods sold, regardless of materiality, because:

1 answer:

Citrus2011 [14]3 years ago

8 0

I had to look for the options and here is my answer.

Some accountants assert that variances should be written off directly to the price of the sold goods, regardless or materiality because product proration would indicates that assets values on the balance sheet consist of the inefficiency costs.

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Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to sala

11111nata11111 [884]

Answer: $20,000

Explanation:

Given that,

Singer's original capital = $40,000

McMann's original capital = $60,000

Singer's salary = $12,000

McMann's salary = $18,000

Interest on original capital = 10%

Profit sharing ratio = 3:2

Income of the year = $30,000

McMann's share of the income:

Salary = $18,000

Interest = $6,000

Singer's share of the income:

Salary = $12,000

Interest = $4,000

Therefore,

Remainder = $30,000 - $40,000

= -$10,000

Hence, remainder will be divided among these two partners in 3:2 ratio.

So,

McMann's share of remainder = $\frac{2}{5}\times10,000$

= -$4,000

Therefore, McMann's share of the income:

= Salary + Interest + remainder

= $18,000 + $6,000 + (-$4,000)

= $20,000

3 0

3 years ago

Bello, Inc., has a total debt ratio of .31.

lutik1710 [3]

Answer:

a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company.

b.Equity Multiplier or P/E ratio=Market value per share/Earning per share.

Explanation:

a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company. The Debt Equity ratio can be calculated using the Market value of debt or equity. It can also be calculated using the book values of debt or equity which are included in the balance sheet of the company.

b. Equity multiplier is also known as price /earning ratio. A price/earnings ratio or P/E ratio is the ratio of the market value of a share to the annual earnings per share. For every company whose shares are traded on a stock market, there is a P/E ratio. For private companies (companies whose shares are not traded on a stock market) a suitable P/E ratio can be selected and used to derive a valuation for the shares.

Equity Multiplier or P/E ratio=Market value per share/Earning per share.

4 0

3 years ago

The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the

faust18 [17]

Answer and Explanation:

The preparation is presented below:

1. For Direct labor budget

<u> Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter Year </u>

Production Units 10400 9400 11400 12400 43600

direct labor time

per unit (hr) 0.25 0.25 0.25 0.25 0.25

Total direct labor

hour needed 2600 2350 2850 3100 10900

direct labor cost

per hour 12 12 12 12 12

Total direct

labor cost 31200 28200 34200 37200 130800

2. For Manufacturing overhead budget

<u>Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter Year</u>

Variable

manufacturing overhead 4420 3995 4845 5270 18530

Fixed manufacturing

overhead 84000 84000 84000 84000 336000

Total manufacturing

overhead 88420 87995 88845 89270 354530

Less: depreciation -24000 -24000 -24000 -24000 -96000

cash disbursement

for manufacturing overhead 64420 63995 64845 65270 258530

8 0

3 years ago

Tax return 12-59 assignment

Sonja [21]

What?

Explanation:

Good Luck

7 0

3 years ago

Hooray! You hit your sales number for the quarter and are awarded a $3,000 bonus. You spend $2,100 on a new living room TV and e

kotykmax [81]

Answer:

0.7 and 0.3

Explanation:

Data provided in the question

Awarded bonus value = $3,0000

Spending amount on a new living room = $2,100

So by considering the above information , the MPC and MPS is

As we know that

MPC = change in Consumption spending ÷ change in income

= $2,100 ÷ $3,000

= 0.7

And, the

MPC + MPS = 1

0.7 + MPS = 1

So, the MPS is 0.3

4 0

3 years ago