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3 years ago

Millie withdraws $1,000 from her checking account so she can have $1,000 in cash. If no other changes occur, M1 will

Business

1 answer:

IceJOKER [234]3 years ago

4 0

Answer:

M1 will not change

Explanation:

M1 is the money supply that is composed of physical currency , coin, demand deposits, travellers' checks, checking accounts, and negotiable order of withdrawal (NOW) accounts. M1 includes the most liquid of money supply.

Because checking account and cash are both components of M1, there would be no change in M1

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A manufacturer reports the following costs to produce 10,000 units in its first year of operations:

rewona [7]

Answer:

Option (C) is correct.

Explanation:

Variable overhead per unit:

= Variable overhead ÷ Total units produced

= $70,000 ÷ 10,000

= $7 per unit

Fixed overhead per unit:

= Fixed overhead ÷ Total units produced

= 120,000 ÷ 10,000

= $12 per unit

Total product cost:

= Direct materials + Direct labor + Variable overhead + Fixed overhead

= 10 + 6 + 7 + 12

= $35 per unit

7 0

2 years ago

The inventory data for an item for November are:

Katen [24]

Answer:

USING LIFO METHOD

Nov 1 Opening inventory 20 [email protected]$19 = 380

Nov 4 Sales 10 [email protected]$19 = (190)

Nov 10 Purchases 30 [email protected]$20 = 600

Nov 17 Sales 20 [email protected]$20 = (400)

Nov 30 Purchases 10 [email protected]$21 = 210

Cost of merchandise sold 600

The correct answer is B

Explanation:

In LIFO method of inventory valuation, most recent stocks are issued first. For instance, sales of 10 units in November 4 will be issued from the November 1 opening inventory and valued at the price of opening inventory.November 17 sales will be issued from November 10 purchases and valued at the price of November 10 purchases.

8 0

3 years ago

Mercury Inc. purchased equipment in 2019 at a cost of $400,000. The equipment was expected to produce 700,000 units over the nex

Wittaler [7]

Answer:

See explanation section

Explanation:

We know,

Annual depreciation rate under Units-of-production = Depreciable amount/Overall (expected) production

Given,

Purchase value = $400,000

Residual value = $50,000

Expected production = 700,000 units

Depreciable Amount = $(400,000 - 50,000) = $350,000

Annual depreciation rate = $350,000/700,000

Depreciation rate = $0.50

Thrrefore, Accumulated depreciation from 2019 to 2021 = (100,000 + 160,000 + 80,000)*$0.50

= $170,000

We know, Book value of asset = Cost price - Accumulated depreciation

Book value = $400,000 - $170,000 = $230,000

Again, Loss on sale of equipment = Book value - Sales price

Loss on sale of equipment = $230,000 - $210,000

Loss on sale of equipment = $20,000

The journal entry to record the sale =

Debit Cash $210,000

Debit Accumulated Depreciation $170,000

Debit Loss on sale $20,000

Credit Equipment $400,000

7 0

3 years ago

Read 2 more answers

Depreciation: Multiple Choice

Whitepunk [10]

Answer:

4. Estimates the decrease in the value of capital goods due to wear and tear over the year.

Explanation:

In accounting terms and in the business world, depreciation is defined as the systematic loss or reduction in value of a fixed asset or capital goods over time due to wear and tear. It is used in estimating the useful life or life expectancy of the asset. Examples of those fixed assets include, buildings, furniture, tractors, etc.

8 0

3 years ago

Saying that Risk and Return go hand in hand, tells us that you ________ as the length of the investment horizon ________." A. ca

klio [65]

Answer:

A. can afford to take on additional risk; increases

Explanation:

Saying that Risk and Return go hand in hand, tells us that you can afford to take additional risk as the length of the investment horizon increases. Increasing the length of the investment horizon increases the ability to take on additional risk because in the long run the investment pays off while it may be choppy in the short time horizon.

5 0

2 years ago