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Black_prince [1.1K]
4 years ago
14

Donovan Company incurred the following costs while producing 500 units: direct materials $10 per unit, direct labour $25 per uni

t, variable manufacturing overhead, $15 per unit, total fixed overhead costs, $10,000; variable selling and administrative costs, $5 per unit; total fixed selling and administrative costs, $7,500. There are no beginning inventories.
What is the operating income using absorption costing if 500 units are sold for $100 each?

a. $500
b. $2,500
c. $2,750
d. $5,000
Business
1 answer:
Dafna1 [17]4 years ago
8 0

Answer:

Option (D) is correct.

Explanation:

Unit product cost:

= Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead

= $10 + $25 + $15 + $20

= $70

Operating income using absorption costing:

= (500 units × $100) - (500 units × $70) - (500 units × $5) - $7,500

= $50,000 - $35,000 - $2,500 - $7,500

= $5,000

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Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the
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Answer:

The journal entry is as follows:

Cash A/c Dr. $2,020,000

Discount on bonds payable A/c Dr. $59,216

             To Bonds payable                              $2,000,000

             To Paid in capital - stock warrants    $79,216

(To record the issuance of the bonds and warrants)

Workings:

Cash:

= 2,000 × $1,000 × 101%

= $2,020,000

Discount on bonds payable:

= 2,000,000 - 2,020,000 × (980 ÷ 1,020)

= $59,216

3 0
3 years ago
When a sales job is being filled by an untrained individual, the job specifications list will most likely include ________ as a
AlexFokin [52]

When a sales job is being filled by an untrained individual, the job specifications list will most likely include __<u>E) personality traits</u>___ as a way to predict which candidate will perform the job well.

<h3>What are personality traits?</h3>

Personality traits are some characteristics or qualities associated with individuals.  Some of the personality traits include extroversion, agreeableness, openness, conscientiousness, adaptability, and neuroticism.

<h3>Answer Options:</h3>

A) age and gender

B) length of previous service

C) past job performance

D) relevant certification

E) personality traits

Thus, since the individuals involved are not trained, the most important factor to consider is not age, gender, previous service, past job performance, or relevant certification, but <u>E) personality traits.</u>

Learn more about personality traits here: brainly.com/question/10082381

6 0
3 years ago
Identify the term for unsold goods, raw materials, Or work-in-progress that a company has.
ss7ja [257]

Answer:

Inventory

Explanation:

Inventory refers to

  1. The finished products in the warehouse or store that is ready for sale.
  2. Raw materials used in the production of goods
  3. Goods that in the production process, also known as work in progress.

Inventory is held with the intention of selling. It is classified as current assets. Income realized from the sale of inventory is revenue to the business.

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3 years ago
Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a(n)6% interest rate to invest in the stock market.
elena-14-01-66 [18.8K]

Answer:

D)-26%

Explanation:

The computation of the realized return on your investment is shown below:

= (Rate of return × total investment) - (interest paid)

= (-10% × $20,000) - (6% × $1,000)

= (-$2000 - $600)

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Now  the Rate of return is

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hence, the realized return on your investment is -26%

Therefore the correct option is D.

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3 years ago
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