This would be a general partnership because both parties are responsible equally.
Answer and Explanation:
The computation is shown below:
NPW of X is
= -$20,000 - $9,000 × (P/A,12%,5) + $5,000 × (P/F,12%,5)
= -$20,000 - $9,000 × 3.604776 + $5,000 × 0.567427
= -$49,605.85
And,
NPW of Y is
= -$35,000 - $4,000 × (P/A,12%,5) + $7,000 × (P/F,12%,5)
= -$35,000 - $4,000 × 3.604776 + $7,000 × 0.567427
= -$45,447.11
Based on the above calculations as we can see that net present cost of Y is lower than the net present cost of X so Y should be selected
Answer:
b. Cost of Goods Sold, Work-in-Process Inventory, and Finished-Goods Inventory.
Explanation:
Whenever manufacturing overheads are prorated and under-applied or over-applied, then they are charged to inventory or cost which includes overheads as part of it.
As for instance, raw material inventory do not include any overheads, it is just the purchase price of inventory, as no work is performed on it.
Cost of goods sold, includes all the cost incurred to sale the good, from acquiring raw material to converting finished goods, and then adding the sales expense the goods are sold.
Finished goods include every material and overhead to convert the item into finished state and usable state.
Work in process is half way completed, or the percentage prescribed and includes raw material, includes overheads, but the product is somewhere more than raw inventory and less than finished good.
Therefore, correct option is:
b.
Answer: company’s direct labor budget = $320000
Explanation:
Given that,
Standard hourly labor rate in the Cutting Department = $12
It takes 30 minutes of direct labor time to cut the lumber
Tables take one hour to assemble
Standard hourly rate in the Assembly Department = $10
Lunchco’s production budget = 20,000
Cutting Department = production budget × direct labor time × Standard hourly labor rate
= 20000 × 0.5 hours/unit × $12/unit
= $120000
Assembly Department = production budget × Tables take one hour to assemble × Standard hourly labor rate
= 20000 × 1 hour/unit × $10/unit
= $200000
Therefore,
company’s direct labor budget = Assembly Department + Cutting Department
= 200000 + 120000
= $320000
