Answer:
The answer is: B) $76.46
Explanation:
Conversion costs are those incurred when turning raw materials into finished products. To get the conversion cost of a product you must add direct labor and manufacturing costs, we can use the following formula:
Conversion Costs = Direct Labor + Manufacturing Overheads
Conversion Costs = $63,000 + $94,500 = $157,500
Then we divide the total conversion costs by the total amount of units manufactures:
Conversion cost per unit = $157,000 / 2,060 units = $76.46 per unit
Answer:
The Journal Entry is shown below in the explanation section
Explanation:
The first step to take is to make use of the Journal entry.
Journal Entries for issuing Bonds
1 May Cash 800,000
Bonds Payable 800,000
1 Nov Interest expense 24,000
Cash 24,000
(800,000* 6%*6/12)
31 Dec Interest expense 8000
Interest Payable 8000
(800,000* 6%* 2/12)
Answer:
c) gain-sharing
Explanation:
Based on the scenario being described within the question it can be said that the team members were also compensated through a gain-sharing system. This term, also known as profit sharing, refers to an incentive plan that usually provides a direct or indirect payment to employees based on the company's profitability, usually in the form of shares of the company.
Answer:
Increasing Inventory by 40,000 units at a cost of $15,000 per unit
The Cost of producing 40,000 units extra = $40,000 *$15,000 = $600,000,000
Conclusion: As this is an additional cost incurred by the firm by increasing inventory by 40,000 unit at $15,000 per unit, it will be term as cash outflow. The impact of the inventory change on cash flow is outflow.