The periodic expensing of an asset over the property’s
theoretic economic life is known as the depreciation. Depreciation occurs when
there is a presence of the utility’s loss and in the same time, there is a
physical deterioration or economical obsolesce that causes a value or that both
may occur in the same time.
Answer:
1,657,000 units
Explanation:
The FIFO method is concerned with the work done in the current production period.
<u>Equivalent Units of Production - Conversion Costs</u>
To finish Opening Work In Process ( 85,000 x 80%) 68,000
Started and Completed [(1,430,000 - 85,000) x 100%] 1,345,000
Ending Work In Process 305,000 x 80% 244,000
Total Equivalent Units of Production - Conversion Costs 1,657,000
therefore,
the equivalent units for the conversion cost calculation are: 1,657,000 units
Answer:
Explanation:
1. Jasper Company
Income Statement
Sales (280000 x $12) $3360000
<u>Less: Cost of goods sold</u>
Add: Direct Material $180000
Add: Direct Labor $505000
Add: Manufacturing Overhead <u>$110000</u>
Cost of goods sold <u>($795000)</u>
Gross Profit $ 2565000
<u>Less: Expenses</u>
Selling expense $437000
Administrative expense <u>$854000</u>
Total expenses <u>($1291000)</u>
Net income <u> $1274000</u>
Percentage of sales for each line item
Sales = 100%
Cost of goods sold: x 100= 23.7%
Selling expense : x 100 = 13%
Administrative expense: x 100 = 25.4 %
2. According to the income statement in requirement 1, the manager can control cost by outsourcing the product if it is cheaper to get it from a third party in order to cut/control cost of goods sold.
Manager can also try controlling the administrative expenses as they are taking a bigger proportion than any other cost/ expense.
Tara's best option to put a small portion of every paycheck into a low-risk investment is investing in an S&P 500 index fund.
<h3>What is a paycheck?</h3>
A paycheck can be defined as a financial document that is issued by an employer to an employee as payment for the work done over a period of time.
<h3>What is
risk tolerance?</h3>
In Insurance, risk tolerance can be defined as the willingness of an individual or organization to take a risk in business transactions and investments, in order to get a potentially positive reward.
Generally, the high risk that is associated with investments such as stocks, high-yield bonds, etc., is often perceived by investors to be worth the higher reward these investment brings.
In this scenario, we can reasonably infer that Tara's best option to put a small portion of every paycheck into a low-risk investment is investing in an S&P 500 index fund.
Read more on low-risk investments here: brainly.com/question/26164819
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