Answer:
$70 per unit.
Explanation:
Based on the information given we were been told that the market price of X costs the amount of $70 per unit which simply means that market price exists, based on this the transfer price of X in a situation were each division is been treated as a profit making center will be the market price of $70 per unit.
Answer:
b. $800
Explanation:
For computing the total annual inventory cost first we have to compute the economic order quantity which is shown below:
= 200 units
The total cost of ordering cost and carrying cost equals to
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 4,000 ÷ 200 units × $20 + 200 ÷ 2 × $4
= $400 + $400
= $800
We simply applied the above formulas
Answer:
A) Credit to Common stock $2,000
C) Credit to Additional paid-in capital $8,000
Explanation:
The journal entry to record the issuance of stocks should be:
Dr Cash 10,000
Cr Common stock 2,000
Cr Additional paid in capital 8,000
Whenever a corporation issues new stocks, it must increase common stock account using the stocks' par value. Any additional amount must be recorded under the additional paid in capital account. Both accounts are part of the stockholders' equity and have credit balances.
Answer:
=$57.754
Explanation:
The question is to determine The Home Construction Company's Total Cost of Ordering and Carrying the nails as follows:
Known items
What is the demand or D= 4,765 boxes
What is the Fixed Ordering Cost = $0.70
The Carrying Cost = $0.5 per bag
Therefore the Equilibrum Order Quantity
= (2FD/C)∧1/2
= 2(0.70x 4,765) =
=6,671/0.5
= 13,342∧1/2
=115.507 or 116 boxes
Now the total Cost for Ordering and Carrying
= C(EOQ/2) + F(D/EOQ)
=$0.5 (58) + $0.70 (4,765/116)
= 29 + 28.754
=$57.754