Answer:
The amount of underapplied manufacturing overhead at the end of the year is $1200.
Explanation:
Total estimated $360,000/est
direct labour hours 45000 = $8x (Actual Dl hours) 47000
= $376,000
Actual Overhead worked = $377,200 - $376,000
= $1200 underapplied
Therefore, The amount of underapplied manufacturing overhead at the end of the year is $1200.
Inventory Costs plays a major role in ascertaining working capital requirements as well structuring cash flow statement.
Explanation:
In the given example,
inventory cost 40 percent
Inventory Value $400 million
Ratio of inventory cos ts to inventory value = Inventory Cost / Inventory Value
.
so in the current case it will be 40% x/$400 million
Hence, Inventory Cost 160 Million
Since the cost is fairly on a higher side at 40$ it should try to reduce it which will help in improving its bottom-line.
Company should focus on offering on discounts and promotions and reduce Obsolete Stock.
It should work on restructuring and organizing warehouse costs by prioritizing inventory based on their movements.
The procurement team should order in minimum quantities and benchmark reorder point.
Answer:
$64,474.20
Explanation:
As for the information provided,
discount rate = 7.25%
First payment will be made at the end of year 1
Discounting factor = 
Thus, current value of payment = 
= $26,107.20
Discounting factor for receipts =
Year 1 = = $28,000 
0.9324 = 26,107.20
Year 2 = 
Year 3 = 
Therefore, value of contract today = - $26,107.20 + $26,107.20 + $30,429.0 + $34,045.20 = $64,474.20
Answer:
a. Groupo sells goods to MTN for $1,000,000, payment due at delivery.
- transaction price = $1,000,000
- revenue recognized once the goods are delivered
No journal entry is required until goods are delivered and accepted.
b. Groupo sells goods on account to Grifols for $800,000, payment due in 30 days.
- transaction price = $800,000
- revenue recognized immediately since goods were already delivered
The journal entry:
Dr Accounts receivable 800,000
Cr Sales revenue 800,000
c. Groupo sells goods to Magnus for $500,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $464,000.
- transaction price = $480,000
- revenue recognized immediately since goods were already delivered
The journal entry:
Dr Notes receivable 500,000
Cr Sales revenue 480,000
Cr Discount on notes receivable 20,000
To predict the total costs for 3,000 birdcages:
Use the average cost per unit of $18.00 and multiply it by 3,000.
($18)(3,000)= $54,000
$54,000 is the predicted total costs of 3,000 birdcages.
