Allocated to future accounting periods equally over the periods receiving the benefit.
Manufacturing cost is the total manufacturing cost of goods completed during a particular accounting period. These costs include direct materials, direct labor, and manufacturing overhead for products transferred from manufacturing to finished goods inventory.
The manufacturing cost of goods is important. Because it gives management an overview of the total cost of production and whether that cost is high or low. By better understanding the cost of goods produced, the company can make adjustments to maximize overall profitability.
Correct answer $46400
Working
Unadjusted cost of goods sold $ 48,000
Add: Ending finished goods $ 8,400
Less: Beginning finished goods $ (10,000)
Cost of goods manufactured $ 46,400
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A retrenchment strategy <span>is another term for a defensive strategy.
</span>Companies use the retrenchment strategy with the goal to reduce the diversity or the overall size of the operations of the company and by doing so to cut expenses and reach to a more stable financial position.
<span>This strategy will revitalize the organizational resources.</span>
If the central bank wants to contract aggregate demand, it can <u>reduce</u> the money supply and thereby <u>increase</u> the interest rate.
<h3>How is aggregate demand contracted by the central bank?</h3>
The ways that the central bank can contract aggregate demand are:
- Increasing higher interest rates
- Increase the reserve ratio
- Reducing the quantity of loanable funds.
When it reduces the interest rates and the reserve ratio, it will increase the money supply and aggregate demand will increase.
Thus, if the central bank wants to contract aggregate demand, it can <u>reduce</u> the money supply and thereby <u>increase</u> the interest rate.
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Answer:
D) $1,710,000
Explanation:
Before adjustments, the inventory balance was $1,500,000; you must add merchandise purchased FOB shipping point (title passes at the moment merchandise is shipped) and the merchandise that was located in the shipping area:
adjusted final inventory = $1,500,000 + $90,000 + $120,000 = $1,710,000