Answer: D
Explanation: I just took the test
Answer:
V. Boutique
Assuming their projection of 500 gowns is accurate, the total average cost they will incur per gown is:
= $108.
Explanation:
a) Data and Calculations:
Unit variable costs:
Fabric and materials per gown = $62
Labor cost per gown to construct the gown = $40
Total unit variable costs per gown = $102
Unit fixed costs:
Equipment cost = $3,000/500 $6
Total average costs per gown = $108
b) The average cost per gown equals the unit costs (variable costs per unit and the fixed costs per unit). V. Boutique incurs a total equipment cost of $3,000 for the 500 gowns. This means that each gown consumes $6 ($3,000/500) in equipment costs.
Answer:
Assuming Charlie uses the cost depletion method, his depletion expense for the year is $ 56,250
Explanation:
Depletion method is used to provide a depletion charge for assets which have a depletion nature in the usage of the resources such as mines, quarries and oil wells.
Depletion Charge = Cost /Expected Total Contents in Units × Number of Units taken in the Period
= $225,000 /1,000,000 × 250,000
= $ 56,250
Answer:
$304,500
Explanation:
Interest payable on December 31, year 1 = $290,000 * 5%
Interest payable on December 31, year 1 = $14,500
Total amount of liabilities to be reported on the Balance Sheet, year 1:
= $290,000 + $14,500
= $304,500
So, the total amount of liabilities related to these bonds that will be reported on the balance sheet at December 31, Year 1 is $304,500.
