Answer:
Please see the naswer below
Explanation:
Activity-based costing ABC is a method for assigning costs to products, services projects, tasks, or acquisitions, based on the Activities that go into them and the Resources consumed by these activities. Following is the proper order of tasks in an ABC system
1. Identify the primary activities and estimate a total cost pool for each.
2.Select an allocation base for each activity.
3.Calculate an activity cost allocation rate for each activity.
4. Allocate the costs to the cost object using the activity cost allocation rates.
Answer:
Miller's retained earnings on December 31, 2016 is $9,000,000.
Explanation:
Miller's retained earnings on 31 December 2016 = retained earnings on January 1, 2016 + net income - declared dividends
= $8,000,000 + $1,500,000 - $500,000
= $ 9,000,000
Therefore, Miller's retained earnings on December 31, 2016 is $9,000,000.
Answer:
$84,000
Explanation:
Open a Raw Materials T - Account and find the Ending inventory of Direct Materials as a Balancing Figure as follows :
Raw Materials T - Account
Debit :
Beginning Inventory $26,000
Purchases $148,000
Total $174,000
Credit:
Requisitioned in Manufacturing $90,000
Ending Inventory<em>(Balancing figure) </em>$84,000
Total $174,000
Therefore, the cost of the ending inventory of Direct Materials is $84,000
Answer:
Solvency
Explanation:
Solvency is defined as the ability of a company to meet it's long term financial obligations like having the ability to pay off debts as they mature. Solvency measures if a company is able to pay off it's debt in long term.
Although solvency and liquidity are similar, difference is liquidity is more concerned with paying off short term debts.
A company or firm is said to be solvent when the current assets exceeds current liabilities.
Answer:
$470
Explanation:
The calculation of the economy income is given below:
Since $1,690 spend on goods and then he decided to purchase for $470 in order to generate it
So here we can see that there is one and only economic activity that took place at the present quarter that is of $470
Therefore the economy income is $470
