Answer:
B. $2,000
Explanation:
Given;
Total cost of ending inventory = $9,000
Total number of units = 600
Over heads cost = $3,000 and the overhead rate is 75% of direct labor
Let direct labour cost be y
75% × y = 3000
3y/4 = 3000
y = 4 × 3000/3
y = $4,000
Total Inventory cost = direct material cost + direct labour cost + overheads
9000 = direct material cost + 4000 + 3000
direct material cost = 9000 - 7000
= $2,000
Both A and B so answer C.
Answer: $93,876
Explanation:
The equivalent present amount of an 8year series of decreasing amounts when the interest rate is 10% compounded annually, the first year amount is $20,000, and the rate of decrease is $800 per year will be calculated thus:
PV = C / (1+r) ^ t
= 20,000/1.1 + 19,200/1.1² + 18,400/1.1³ + 17,600/1.1⁴ +16,800/1.1^5 + 16,000/1.1^6 + 15,200/1.1^7 + 14,400/1.1^8
= $93,876
Therefore, the equivalent present value is $93,876.
Answer: $27,864
Explanation:
The amount that should be recorded as other comprehensive income is the fair value less the sales price and the amortized premiums to reflect the true value of the investment,
= 1,164,000 - 1,129,896 - 3,048 - 3,192
= $27,864
$27,864 is the amount Crane Company should report as other comprehensive income and as a separate component of stockholders’ equity.
