Answer:
The solution and complete explanation for the above question and mentioned conditions is given below in the attached document.i hope my explanation will help you in understanding this particular question.
Explanation:
Answer:
Cash, account receivable, equipment, utilities expenses, salaries expense
Explanation:
Normally, the asset and expense accounts have debit balances while the liabilities, equity, revenue and other income accounts have credit balances.
In the given list of account:
Cash, account receivable, equipment belong to asset accounts, therefore will have normal debit balance.
Utilities expenses, salaries expense belong to expense accounts, therefore will have normal debit balance.
Remaining items in a given list will have normal credit balance.
Answer:
D. Star will be liable on the contract only if it adopts the contract.
Explanation:
Answer:
Testerman Construction Co.
Internal rate of return method in analyzing capital expenditure:
Present value of expenditure = $149,630
Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)
NPV = $0 (PV of cash outflow - PV of cash inflow)
Therefore, the IRR = 20%
Explanation:
a) Data and Calculations:
Investment cost = $149,630
Annual net cash flows = $45,000
Investment period = 6 years
Annuity of future cash flows = 3.3251
b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project. This IRR helps the managers to determine the projects that add value and are worth undertaking. IRR is based on assumptions. Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used to generate the returns, and the assumption of a constant reinvestment may which IRR makes.
Answer:
Crazy Delicious Inc.
The standard direct materials cost per bar of chocolate is:
= $0.21.
Explanation:
a) Data and Calculations:
A batch of chocolate = 1,800 bars
Ingredient Quantity Price Total Cost
Cocoa 480 lbs. $0.30 per lb. $144.00
Sugar 150 lbs. $0.60 per lb. 90.00
Milk 120 gal. $1.20 per gal. 144.00
Total standard materials costs $378.00
Standard direct materials cost per bar $0.21 ($378/1,800)
b) The standard direct materials cost per bar is computed as the dividend of total direct material costs per batch divided by the batch quantity.
