Answer:
Courts Distributors and Eastinghouse Corporation
Dispute over Contract Price
The two parties have a legal contract. The contract was established when Courts requested Eastinghouse to send the refrigerators and bill later.
The exact price for the contract is in dispute. This dispute can be resolved between the parties. Reference to the market price will help resolve the dispute, otherwise, the parties may seek alternative dispute resolutions, like litigation, mediation, or arbitration.
Explanation:
a) Data and Analysis:
Eastinghouse's invoice price for the refrigerators = $140,000
Courts' adopted market price = $120,000
b) Since Courts' reference to the price is with regard to the wholesale market price, it may be that Eastinghouse quoted the retail price instead. Since Courts is a distributor, it has the right to be charged a wholesaler's price and not a retailer's. Therefore, we can conclude that after due reference to the prevailing market price of similar refrigerators, the two parties may agree to a price of $120,000 or a little higher.
Answer:
$50
Explanation:
Jim buys a 5% bond
The amount is $100
The market interest rate increases to 10%
Therefore the price at which the bond cann be sold is calculated as follows
= 5×100
= 500×0.01
= 50
Hence it can be sold for $50
Answer:
$101,900
Rationale:
($140,000 - $30,000 - $8,100) Two exemptions at $4,050 each.
Explanation:
Answer:
$135,400
Explanation:
Given that,
Beginning Work-in-Process Inventory = $10,800
Ending Work-in-Process Inventory = $22,800
Direct materials cost = $63,800
Direct labor cost = $39,800
Actual manufacturing overhead cost = $40,800
Manufacturing overhead cost applied to Work-in-Process = $43,800
Prime cost = Direct materials cost + Direct labor cost
= $63,800 + $39,800
= $103,600
Factory cost = Prime cost + Manufacturing overhead cost applied
= $103,600 + $43,800
= $147,400
Cost of goods manufactured for April:
= Factory cost + Beginning Work-in-Process Inventory - Ending Work-in-Process Inventory
= $147,400 + $10,800 - $22,800
= $135,400
