Answer:
Fixed manufacturing overhead costs are included as part of Work in Process inventory under absorption costing only
Answer:
Gamma
Explanation:
Current ratio is an example of a liquidity ratio. Liquidity ratios measure a firm's ability to honour its short terms obligations. the higher the current ratio, the higher the firm's liquidity and its ability to meet short term obligations
Current ratio = current asset /current liability
Alpha = $74,524 / $60,100 = 1.24
Beta = $207,536 / $152,600 = 1.36
Gamma = $60,125 / $32,500 = 1.85
Delta = $95,335 / $82,900 = 1.15
Gamma has the highest current ratio and the best short-term solvency position
Answer:
It is a disadvantage to continue processing QI. The lost on profit is= $5500
Explanation:
Product QI has been allocated $18,300 of the total joint costs of $39,000.
A total of 2,500 units of product QI are produced.
Product QI can be sold at the split-off point for $14 per unit.
It can be processed further for an additional total cost of $10,500 and then sold for $16 per unit.
<u>Split-off point:</u>
Sales= 2500q*$14=$35000
Total cost=$18300
Profit=$16700
<u>Post-split-off:</u>
Sales=2500*16=$40000
Cost previous split-off=$18300
Added cost= $10500
Profit=$11200
Comparing profits (16700>11200) it is not beneficial to continue processing QI products.
When you make one payment in full at the end of the year.