Allocation of joint costs in proportion to the value of the output of the sales which were produced in the process during at the split-off point is a preferred approach.
<h3>What are joint costs?</h3>
Joint costs involve the benefit of more than one product, and the separation of the costs of such products is impossible as the benefits related thereto are also joint.
One of the best examples of joint costs is in a condition when a cattle-owner feeds both the flock of sheep and cattle of cows at the same time. One cannot differentiate between the separate costs allocated.
Hence, it may be said that value basis is the most appropriate method for the purpose of allocation of joint costs being incurred in the proportion as it may be.
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Answer:
Quarterly deposit= $9,508.68
Explanation:
<u>First, we need to calculate the future value of the initial investment:</u>
FV= PV*(1+i)^n
PV= $168,000
i= 0.10/4= 0.025
n= 10*4= 40
FV= 168,000*(1.025^40)
FV= $451,090.73
Difference= 1,092,000 - 451,090.73= $640,909.27
<u>Now, to calculate the quarterly deposit, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= quarterly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (640,909.27*0.025) / [(1.025^40) - 1]
A= $9,508.68
Answer:
May 1
DR Cash $252
CR Service Revenue $252
<em>(To record payment for services rendered)</em>
Working
Cash = Net Service revenue
Net Service revenue = $280 * ( 1 - 10%)
= 280 * 90%
= $252
Answer:
The penalty will be $133.333 for the early withdrawal.
Explanation:
On a $20,000 earning 4% annually, the amount of interest earned per year is:
$
20
,
000 x 4% = $
800
On a monthly basis, the CD earns:
$
800 / 12 = $
66.667
If the penalty involves a two (2) months worth of interest, then, the penalty for the early withdrawal will be:
2 x $
66.667 = $
133.333
Answer:
$1960
Explanation:
The computation of the total cost is shown below:
Total variable overhead estimated is
= (4 × 31400)
= $125600
Now
total overhead estimated is
= Total variable overhead estimated + Total fixed overhead estimated
= $125600 + 219800
= $345400
Now predetermined overhead rate is
= $345400 ÷ 31400
= $11 per machine hour
Now total overhead applied is
= (11 × 20)
= $220
So, total job cost is
= Direct material + Direct labor + Total overhead
= (580+1160+220)
= $1960
