Answer:
Equivalent Units
Material cost = 26,560
Conversion Cost= 25,540
Explanation:
We would assume the company uses weighted average method of valuation.
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Equivalent units = Degree of completion (%) × Number of units
Material cost
Item Unit Equivalent unit
Completed 25,200 100% ×25200 = 25,200
Closing WIP 1,360 100%× 1,360 1360
Total equivalent units 26,560
Conversion Cost
Item Unit Equivalent unit
Completed 25,200 100% ×25200 = 25,200
Closing WIP 1,360 25%× 1,360 340
Total equivalent units
Answer:
April 5
Debit : Merchandise $36,000
Credit : Accounts Payable - Tamarisk Company $36,000
April 6
Debit : Accounts Payable - Tamarisk Company $920
Credit : Cash $920
April 7
Debit : Equipment $30,500
Credit : Accounts Payable $30,500
April 8
Debit : Accounts Payable - Tamarisk Company $4,200
Credit : Merchandise $4,200
April 15
Debit : Accounts Payable - Tamarisk Company $30,880
Credit : Discount received $926.40
Credit : Cash $29,954
Explanation:
Working for Journal on April 15
Balance = $36,000 - $920 - $4,200
= $30,880
Discount = $30,880 x 3%
= $926.40
Amount Paid = $30,880 - $926.40
= $29,954
Answer:
$70,875
Explanation:
By definition, a flexible budget is when a budget has been adjusted or flexed to accommodate the changes in the level of activity.
If the company wanted to create a flexible budget for 9,000 units, then the value that would be recorded for variable costs will be:
Indirect materials, $22,000/8000*9000 = 24,750;
Indirect labor, $25,000/8000*9000 = 28,125 ;
Utilities, $12,000/8000*9000 = 13,500;
Supervision, $4,000/8000*9000=4,500
Total of variable costs = ........................70,875
Answer:
This is because in a free market, the prices of goods and services are determined by market forces, and the price mechanism will always keep the market at equilibrium.
Explanation:
The free market is a market without government intervention, equilibrium price and quantity are determined by the interaction of the market forces, also called price mechanism , which Adams Smith referred to as the invisible hands in the market.
The free market cannot operate outside the equilibrium because, the market forces will always keep the market towards equilibrium. Even if equilibrium is distorted, as a result of any shock, the market forces will bring the market towards equilibrium all things being equal, except there is market failure.
a free market is a market in which prices of goods and services are set by demand and supply and are allowed to reach their point of equilibrium without government intervention
