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kari74 [83]
3 years ago
10

Larned Corporation recorded the following transactions for the just completed month.

Business
1 answer:
Yanka [14]3 years ago
8 0

Answer with its Explanation:

Part 1: $89,000 in raw materials were purchased on account.

The purchase of raw material inventory on account is treated as increase in raw material inventory and accounts payables. The journal entry would be as under:

Dr Raw Material Inventory $89,000

Cr Accounts Payables              $89,000

Part 2: $87,000 in raw materials were used in production. Of this amount, $76,000 was for direct materials and the remainder was for indirect materials.

The entry would be increase in work in progress by $76,000 & Manufacturing overhead by $11,000 and would decrease the raw material inventory with $87,000.

The journal entry would be as under:

Dr Work In Progress                 $76,000

Dr Manufacturing Overhead    $11,000

Cr Raw Material  Inventory               $87,000

Part 3: Total labor wages of $128,500 were paid in cash. Of this amount, $103,000 was for direct labor and the remainder was for indirect labor.

The direct cost are allocated to the work in progress and indirect costs are allocated to manufacturing overheads.

The journal entry would be as under:

Dr Work In Progress                 $128,500

Dr Manufacturing Overhead    $103,000

Cr Cash Account                                 $231,500

Part 4: Depreciation of $190,000 was incurred on factory equipment.

The depreciation of the factory equipment is an indirect cost and all the indirect costs are charged to manufacturing overhead.

The journal entry would be as under:

Dr Manufacturing Overhead    $190,000

Cr Cash Account                          $190,000

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Answer: We have assumed constant returns to scale.

Explanation:

Comparative advantage simply stated that an economy should produce the goods whereby the said economy has a lower opportunity cost than its counterpart.

Based on the analysis in the question, the inaccurate assumption is that we have assumed constant returns to scale. This means that an increase in the inputs such as capital and labour which are used in producction will also cause an identical increase in output. In reality, this isn't always true.

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2 years ago
When you use paper money to pay for food, the money is a
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Two new rides are being compared by a local amusement park in terms of their annual operating costs. The two rides are assumed t
fgiga [73]

Complete Question:

Two new rides are being compared by a local amusement park in terms of their annual operating costs. The two rides are assumed to be able to generate the same level of revenue (and thus the focus on costs). The Tummy Tugger has fixed costs of $10,000 per year and variable costs of $2.50 per visitor. The Head Buzzer has fixed costs of $4000 per year, and variable costs of $4 per visitor. Provide answers to the following questions so the amusement park can make the needed comparison.

Requirement:

Mathematically determine the breakeven number of visitors per year for the two rides to have equal annual costs.

Answer:

4000 visitors

Explanation:

As we know that:

Total Annual Cost  = Variable Cost Per Unit * Total Units    +  Fixed Costs

For <u>Tummy Tugger,</u>

Variable Cost per Unit is $2.5 per visitor

Total Units are not given so we assume it to be "x"

Fixed cost is $10,000

By putting values we have:

Total Annual Cost  = $2.50x + $10,000 ........ Equation 2

Similarly for <u>Head Buzzer</u>,

Variable Cost per Unit is $4 per visitor

Total Units are not given so we assume it to be "x"

Fixed cost is $4,000

By putting values we have:

Total Annual Cost  = $4x + $4,000 .......... Equation 3

As per the requirement, the annual cost for both of the rides is same for the year, which means that Equation 2 is equal to Equation 3.

Mathematically,

2.50x + 10000 = $4x + 4000

$10,000 - $4,000 = $4x - $2.5x

$6,000 = $1.5x

x= $6,000 / $1.5 per unit   = <u>4,000 Units</u>

At 4000 visitors for a year, the annual cost of both rides is the same.

6 0
3 years ago
(a) What is the present value of $34,900 due 9 periods from now, discounted at 9%? (Round answer to 2 decimal places, e.g. 25.25
Simora [160]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

a) What is the present value of $34,900 due 9 periods from now, discounted at 9%

We need to use the following formula:

PV= FV/(1+i)^n

PV= 34,900/1.09^9= $16,068.83

(b) What is the present value of $34,900 to be received at the end of each of 12 periods, discounted at 8%

First, we need to find the final value:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {34,900*[(1.08^12)-1]}/0.08= 662,301.71

PV=  662,301.71/(1.08^12)= 263,009.12

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With 100 employees on staff, your company's insurance company recommended an online two-hour seminar each employee should watch
Helga [31]

Answer:

$7,000

Explanation:

The insurance company will actually save some money, but I doubt that your company does. We can assume that the seminar will be paid by the insurance company and it costs $15,000. After watching that seminar, accidents should decrease by 25% of an equivalent to = $88,000 x 25% = $22,000

Since the insurance company will save $22,000 with the seminar and the cost of the seminar is $15,000, its net gain = $22,000 - $15,000 = $7,000

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