Which of these is a service? A. A car B. Insurance coverage C. Milkshakes D. A bike

In order to produce a new product, a firm must lease equipment at a cost of $100,000 per year. The managers feel that they can s

bezimeni [28]

Answer:

$73 = unitary variable cost

Explanation:

To calculate the unitary variable cost that will yield the break-even point, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

50,000= 100,000 / (75 - unitary variable cost)

3,750,000 - 50,000unitary variable cost= 100,000

3,650,000 = 50,000unitary variable cost

$73 = unitary variable cost

5 0

3 years ago

The transactions completed by Franklin Company during January, its first month of operations, are listed below. Assume that Fran

Digiron [165]

Answer:

Issued check for a payment on account CP, subsidiary posting

Issued check for rent CP, No subsidiary posting

Received cash for a sale CP, No subsidiary posting

Issued an invoice to a customer R, subsidiary posting

Purchased a computer for cash CP, subsidiary posting

Received a check from a payment on account CR, subsidiary posting

Purchased equipment on account P, subsidiary posting

Issued check for salary CP, No subsidiary posting

Issued check for purchase of supplies CP, No subsidiary posting

Issued check for advertising expense CP, No subsidiary posting

Paid for the equipment purchased on account CP, subsidiary posting

Recorded the adjustment for supplies used during the month G, Subsidiary posting

Purchased supplies on account P, subsidiary posting

7 0

3 years ago

On January 1, 2021, the Excel Delivery Company purchased a delivery van for $46,000. At the end of its five-year service life, i

marusya05 [52]

Answer:

Given

Cost $46000

Life= 5 years

Salvage Value= $ 4000

Total miles = 165,000

Formula

Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Straight Line Rate= 100%/ useful Life= 100%/5 = 20%

Double Declining Method = 2 * Straight Line Rate

Double Declining Method = 2 * Straight Line Rate= 2*20%= 40%

1. Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Depreciation Straight Line Method= $ 46000- $4000/ 5= $ 8,400

The depreciation expense using the straight line method does not change unless the salvage value is reached

Years Depreciation Accumulated Dep Book Value

(Cost - Accu. Dep)

a. 2021 $ 8,4000 8400 37600

b. 2022 $ 8,4000 16,800 29,200

c. 2023 $ 8,4000 25200 20,800

d. 2024 $ 8,4000 33,600 12,400

e. 2025 $ 8,4000 42000 4000

2. Straight Line Rate= 100%/ useful Life= 100%/5 = 20%

Double Declining Method = 2 * Straight Line Rate

Double Declining Method = 2 * Straight Line Rate= 2*20%= 40%

In double declining method the rate is multiplied to the cost to get the depreciation expense. 40 % of $ 46000= $ 18400

Each year the rate is multiplied with the remaining book value after deducting the depreciation expense from the cost as $ 46000- $ 18400= $ 27600

Next years depreciation will be $ 27600 * 40%= $ 11040.

This will be added in the original depreciation expense $ 18400 + $ 11040 = $ 29440 and deducted from cost to get the book value. $ 46,000- $ 29440 = $ 16560.

Again rate will be multiplied and each years depreciation will be calculated similarly.

It has been summarized in the table below.

Years Dep Rate Dep Expense Accu. Dep. Book Value

a. 2021 40% 18400 18400 27600

b. 2022 40% 11040 29440 16560

c. 2023 40% 6624 36064 9936

d. 2024 40% 3974.4 40,038.4 5961.6

e. 2025 40% 2384.64 42,0423.4 3576.96

3. Depreciation per unit= (Cost -Salvage value) / Total units of production* Units of Production

Years Mileage Depreciation Depreciation

a. 2021 35,000 ($ 42000/165000)*35000 8909.09

b. 2022 37,000 ($ 42000/165000)*37000 9418.18

c. 2023 28,000 ($ 42000/165000)*28000 7127.27

d. 2024 33,000 ($ 42000/165000)*33000 8400

e. 2025 34,000 ($ 42000/165000)*34000 8654.54

7 0

3 years ago

Gekko, Inc. reported the following balances (after adjustment) at the end of 2008 and 2007.

nevsk [136]

Answer:

Correct answer is D, P3,900

Explanation:

Begging Allowance for doubtful account is P1,500 (96,000 - 94,500). Ending balance of Allowance for doubtful account is P3,000 (P108,000 -P105,000). We can now work back the provision for doubtful accounts that the company has made during 2008.

Beginning P1,500

Add:

Collection of written off accounts 800

Total P2,300

Less:

Written off 3,200

Total (P900)

Therefore, in order for the company to have an ending inventory of P3,000, They must have set up a provision for doubtful accounts in the amount of P3,900. Attached herewith is the T-account of allowance for doubtful accounts

6 0

3 years ago

2. Lereve Company has recorded the following information about the results of its operations for the fourth quarter: Sales reven

Pepsi [2]

Answer:

Lereve Company

Segmented Income Statement for the fourth quarter:

Total Company Western Division Eastern Division

Sales revenues $200,000 $80,000 $120,000

Variable cost of sales 60,000 30,000 30,000

Contribution $140,000 $50,000 $90,000

Fixed costs:

Common $100,000 $25,000 $75,000

Traceable 50,000 20,000 30,000

Net Income (Loss) ($10,000) $5,000 ($15,000)

The results show that the Eastern Division made a net loss of $15,000 and the Western Division raked in a net income of $5,000, which resulted in the company-wide net loss of $10,000. This loss could be traced to the allocated common fixed costs of the division, because its contribution to fixed costs was substantial and better than the Western Division's.

Explanation:

When the results of the operations of a divisional company like Lereve Company are prepared in segmental form, the performance pictures become clearer. Management is enabled to focus on the segments or the factors that are generating the loss to the company. Perhaps, as in this case, the problem may not be with the division, but the allocation of fixed costs to the divisions. It can still be traced to the company as a whole, since it is generating much more fixed costs than it could afford from its revenue.

3 0

2 years ago