Answer and Explanation:
The computation of the unit cost of goods manufactured is shown below:
<u>Particulars variable costing absorption costing</u>
variable cost of $108 $108
goods manufactured ($1,620,000 ÷ 15,000)
Fixed manufacturing
cost $14
($210,000 ÷ 15,000)
unit cost of goods
manufactured $108 $122
Answer: correct evaluation and medium of exchange etc.
Explanation: The main problem with the barter system is that it would be hard to value the goods or services that the parties are exchanging. In the given case, it would be hard to value how many car washes would be equal to a paint of house.
Also finding someone who is willing to paint house in exchange of car washes is another difficult task.
The cost of equity from retained earnings based on the DCF approach=9.44%
Explanation:
- The cost of equity from retained earnings based on the DCF approach can be calculated as follows,
- Therefore, rs =
+ g
Answer:
No options presented but the entry below should be right.
$2,600 worth of merchandise was purchased but $600 was returned so Net accounts receivable:
= 2,600 - 600
= $2,000
Company paid the full amount on July 12 which is within the 10 days required for a discount so they get a 3% discount:
= 2,000 * ( 1 - 3%)
= $1,940
Date Account details Debit Credit
July 12 Accounts Payable $2,000
Cash $1,940
Merchandise inventory $60
Answer:
0.4 or 40%
Explanation:
The formula for Contribution Margin Ratio is:
[TS - TVC] / TS
Where TS = Total Sales
TVC = Total Variable Cost
Applying the formula,
[5,000 - 3,000] / 5,000 = 2000/5000 = 0.4
Turning this value to a percentage, 0.4 × 100 = 40%
The interpretation of this is that for every item sold, 40% of the sales price is available to cover fixed costs.
Remember: The addition of fixed cost to variable cost = total cost
