Answer:
The product cost for 24,500 units is $497,350.
Explanation:
The reason is that the the product cost always includes all the variable production cost and specific fixed production cost. In this scenario, direct material cost, direct labor cost, variable manufacturing overhead cost are variable production cost whereas the fixed manufacturing cost is specific fixed production cost which will form part of product cost. The remainder of the cost left is period cost.
Direct materials (24,500 * $7.7 per unit) $188,650
Direct labor (24,500 * $4.7 per unit) $115,150
Variable manufacturing overhead (24,500 * $2.2 per unit) $53,900
Fixed manufacturing overhead (24,500 * $5.7 per unit) <u>$139,650 </u>
Total product costs $497,350
To
determine what the depreciation of an asset using straight line method, the
formula to be used is:
(Initial
cost of machine – salvage value) divided by estimated useful life
So in
this problem:
Initial Cost
- $135000
Salvage
Value – $15000
Estimated
Useful Life – 5 years
Plug that
in the formula
Annual
depreciation = ($135000 - $15000) / 5
= $120000/
5
= $24,000
The first
year depreciation for the machine is $24000 because the company bought it in
the beginning of the year. (So there is no need to divide this by 12 months)
To record
this:
Depreciation
Expense $24000
<span> Accumulated Depreciation $24000</span>
Answer:
amortization expense is $36000
Explanation:
given data
purchased = $180000
time = 5 year
to find out
amount recorded as amortization expense
solution
we know here purchased patent for 180000 and here life is 5 years
so here
amortization expense will be purchased / time
amortization expense = purchased / time
amortization expense = 180000 / 5
so amortization expense is $36000
Answer:
Ethical behavior includes honesty, integrity, fairness and a variety of other positive traits. Those who have others' interests in mind when they make decisions are displaying ethical behavior. In the workplace, there might be a standard for ethics set throughout the company.
Explanation:
Answer:
$33,500
Explanation:
Relevant data provided
Total Credit Sales = $670,000
Percentage of bad debts = 5%
The computation of Bad Debt Expense is shown below:-
Bad Debt Expense = Total Credit Sales × Percentage of bad debts
= $670,000 × 5%
= $33,500
Therefore for computing the bad debt expenses we simply multiply the total credit sales with percentage of bad debts.
