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3 years ago

Cost of goods sold is given by:

Business

1 answer:

icang [17]3 years ago

8 0

Answer:

b. Net Purchases + beginning inventory - ending inventory.

Explanation:

The formula to compute the cost of goods sold is shown below:

Cost of good sold = Beginning inventory + net purchase - ending inventory

We simply added the net purchase and deduct the ending inventory to the beginning inventory so that the correct value can be determined

It records that cost which is directly related to the product that means it excludes the indirect cost

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In a market served by a monopoly, the marginal cost is $60 and the price is $110. In a perfectly competitive market, the margina

Mice21 [21]

Answer: In a market served by a monopoly, the marginal cost is $60 and the price is $110. In a perfectly competitive market, the marginal cost is $60. If the marginal cost increased from $60 to $75, the monopoly would raise its price by less than $15, and the price in the perfectly competitive market would increase to $75.

Explanation: The monopolist attends to the market demand, therefore the choice of the monopolist is limited by the market demand. If you set a very high price, you will only sell the amount that the demand you want to buy at that price, so it will only increase by less than $ 15.

In a market of perfect competition the companies are accepting price and will produce until the price is equal to the marginal cost so the price would rise to $ 75.

7 0

3 years ago

The Laresen Company uses the machine hour method of applying factory overhead to production. The budgeted factory overhead last

Pani-rosa [81]

Answer:

Total cost= $1,375

Explanation:

Giving the following information:

The budgeted factory overhead last year was $200,000, and there were 40,000 machine hours budgeted.

Job 84:

Direct materials= $900

direct labor hours= 25

Direct labor cost= $350.

First, we need to calculate the manufacturing overhead rate based on direct labor hours:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 200,000/40,000= $5 per direct labor hour

Now, we can calculate the total cost:

Total cost= direct material + direct labor + allocated overhead

Total cost= 900 + 350 + 5*25= $1,375

6 0

4 years ago

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow

avanturin [10]

Answer:

Net income will be $352,500 more if the company continues with Luxury watches only.

Explanation:

Since the company discontinues Sporty watches operation, the company's variable cost is decreasing. However, the fixed expenses remain same as the company will use the space for producing Luxury watches. The effect of operating income will be as follows:

Westfall Watch

Income Statement (Contribution Margin approach)

Particulars $

Sales Revenue [$400,000+(400,000 x 250%)] 1,400,000

Less: Variable expenses

[$255,000 + ($255,000 x 250%)] (892,500)

Contribution Margin 507,500

Less: Fixed Cost (80,000)

Net Income 427,500

Therefore, the net income will be $427,500 which is $(427,500 - 75,000) = $352,500 more.

6 0

3 years ago

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared mo

Usimov [2.4K]

Answer:

1) Planning Budget

Packaging Solutions Corporation

Production Department Planning Budget

For the Month Ended March 31

Direct labor 66010

Indirect labor 10240

Utilities 8270

Supplies 2520

Equipment depreciation 29890

Factory rent 8400

Property taxes 2600

Factory administration 16380

Total expense 144310

2) Flexible budget :

Packaging Solutions Corporation

Production Department Flexible Budget

For the Month Ended March 31

Direct labor 62790

Indirect labor 9960

Utilities 8130

Supplies 2480

Equipment depreciation 29310

Factory rent 8400

Property taxes 2600

Factory administration 16220

Total expense 139890

3.Packaging Solutions Corporation

Production Department Flexible Budget Performance Report

For the Month Ended March 31

Spending Variances

Direct labor 1540 U

Indirect labor 540 F

Utilities 530 U

Supplies 250 U

Equipment depreciation None

Factory rent 400 U

Property taxes None

Factory administration 610 F

Total expense 1570 U

Explanation:

Based on the information given from the question, the planning budget will look like the following

1) Planning Budget

Packaging Solutions Corporation

Production Department Planning Budget

For the Month Ended March 31

Direct labor 66010

Indirect labor 10240

Utilities 8270

Supplies 2520

Equipment depreciation 29890

Factory rent 8400

Property taxes 2600

Factory administration 16380

Total expense 144310

2) Flexible budget :

Packaging Solutions Corporation

Production Department Flexible Budget

For the Month Ended March 31

Direct labor 62790

Indirect labor 9960

Utilities 8130

Supplies 2480

Equipment depreciation 29310

Factory rent 8400

Property taxes 2600

Factory administration 16220

Total expense 139890

3.Packaging Solutions Corporation

Production Department Flexible Budget Performance Report

For the Month Ended March 31

Spending Variances

Direct labor 1540 U

Indirect labor 540 F

Utilities 530 U

Supplies 250 U

Equipment depreciation None

Factory rent 400 U

Property taxes None

Factory administration 610 F

Total expense 1570 U

7 0

3 years ago

A short forward contract that was negotiated some time ago will expire in 4-month and has a delivery price of $42.25. The curren

padilas [110]

Answer:

the value of the short forward contract is -0.49

Explanation:

the computation of the value of the short forward contract is shown below:

= (Delivery price - current forward price)× e^(risk free interest rate × no of months ÷ total number of months)

= ($42.25 - $42.75)× e^(-7.90% × 4÷12)

= -0.49

Hence, the value of the short forward contract is -0.49

Therefore the same should be considered

8 0

3 years ago