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PtichkaEL [24]
3 years ago
6

The two categories of cost comprising conversion costs are

Business
1 answer:
Dmitry [639]3 years ago
7 0

Answer:

b. direct labor and factory overhead

Explanation:

The conversion cost is that convert which is used to convert the raw material to the finished goods inventory. It is a combination of the direct labor cost and the factory overhead or manufacture overhead cost.

It can be fixed or variable marinating costs only. It does not include direct material cost

It is computed by taking a difference of production cost and raw material cost

Hence option b is correct

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Which activity relates to judging the seriousness or gravity of a given problem?
Cerrena [4.2K]

B. Evaluation

Evaluating means to systematically determine somethings merits and significance, including the seriousness or gravity of a problem.

7 0
3 years ago
Read 2 more answers
On January 1 of this year, Thomas Insurance Corporation issued bonds with a face value of $ 4,000,000 and a coupon rate of 9 per
e-lub [12.9K]

Bonds Payable amount reflected in balance sheet = $2192890

Face Value = $2000000

Coupon Rate = 10%

Maturity Period = 10 years

Number of compounding = 2

Interest = $2000000 * 10% * 6/12 = $100000

Period = 2 * 10 = 20

Maturity Value = Face Value = $2000000

Market Interest Rate semiannually = 0.085 / 2 = 0.0425

Market Value = Present Value of Future Cash Flows

= PV of Interest + PV of maturity value

= (Interest * PVAF (4.25%, 20)) + (Maturity Value * PVIF (4.25%, 20))

= (100000 * 13.29437) + (2000000 * 0.434989)

= $1329437 + $869978

= $2199415

Since market value is greater than face value, we can say that bonds are issued at a premium.

Premium = $2199415 - $2000000 = $199415

Journal Entry to record the issuance of bonds:

Cash a/c                                               Dr          $2199415

     To Bonds Payable a/c                                 $2000000                            

     To Premium on the issue of bonds            $199415

Bonds Payable amount is a liability account that carries the quantity owed to bondholders by way of the company. This account usually seems in the lengthy-term liabilities section of the stability sheet, on account that bonds usually mature in more than one year.

Learn more about Bonds Payable amount here: brainly.com/question/7158291

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6 0
2 years ago
The budget components for Park Company for the quarter ended June 30 appear below. Park sells trash cans for $12 each. Budgeted
Dmitry [639]

Answer:

$96,000

Explanation:

Production  26,000 units

<u>Materials Purchase Budget</u>

Production Materials Required  (5×26,000 units)     130,000

Add Budgeted Closing Materials (50,000×20%×5)   50,000

Total Materials                                                             180,000

Less Budgeted Opening Inventory (4,000×5)          (20,000)

Budgeted Materials                                                     160,000

Material Cost per pound                                                $0.60

Total Material Cost                                                      $96,000

Therefore, the materials purchases budget will be for the month ending April 30 will be  $96,000.

7 0
3 years ago
Under U.S. GAAP, if the carrying value of a fixed asset was $50,000, the undiscounted expected future cash flows was $55,000, th
ira [324]

Answer:

$0

Explanation:

According to US GAAP the reduction in the value of the asset due to a decrease in the fair value. It means when fair value of the asset is reduced than the book value of the asset.

Amortized Cost / Book value = $50,000

Market Value = $53,000

Discounted Value = $51,000

There is no Impairment loss on this asset as the fair market value is more than the book value of the asset.

7 0
3 years ago
Read 2 more answers
Economists usually assume that production is subject to increasing opportunity costs because: a. higher production usually resul
umka2103 [35]

Answer:

d. not all resources are equally suited to producing every good.

Explanation:

The rule of increasing cost of opportunity is the principle that, when you keep increasing the development of one item, the cost of opportunity of creating the next unit rises. It occurs just as you redistribute resources to create one product which was ideally suited to create the initial product.

8 0
3 years ago
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