Answer: ($60,000)
Explanation:
Fixed cost is a cost that doesn't vary alongside production level. It should be noted that the relevant cost for production will be addition of the direct materials to the direct labour and the variable maufacturing overhead. This will be:
= $60,000 + $80,000 + $100,000
= $240,000
The relevant costs that will be bought will be:
= 30,000 × $10
= $300,000
Therefore there'll be decrease in net income by:
= $300,000 - $240,000
= $60,000
The answer will be ($60,000)
Answer:
the current income tax expense or benefit is $103,583
Explanation:
The computation of the current income tax expense or benefit is shown below:
Current income tax expense is
= (pre - tax book income - favourable temporary difference + unfavorable temporary difference + unfavourable permanent difference) × tax rate
= ($365,000 - $13,750 + $97,000 + $45,000) × 21%
= $493,250 × 21%
= $103,583
We assumed the tax rate be 21%
hence, the current income tax expense or benefit is $103,583
Answer:
Below
Explanation:
a product recall from a manufacturer to return a product after the discovery of safety issues or product defects that might endanger the consumer or put the makers / seller at risk at legal action.
Answer:
d. $8,300.
Explanation:
Direct Materials
Beginning 8,200
Purchases *16,800
Requisitions 18,400
Ending 6,600
We solve for purchases:
6,600 + 18,400 - 8,200 = 16,800
WIP Inventory
Beginning 7,700
Materials 18,400
Labor 13,700
Overhead 8,200
Transferred Out <u> 39,700*</u>
Ending 8,300
The transferred-out from WIP inventory is the transferred-in for Finished Goods
Answer:
$551,074
Explanation:
Sales revenue
Worst case
Budget sales = 2300 units
Estimated sales price = $750
Sales unit = (100%-4%*2300)
2208 units
Sales price = (100%-6%*750)= 705
Sales revenue =2208*705 =$1,656,000
b) Operating cash flow at worst case sales revenue
Variable cost - $260 *(100%-5%)
=$247
Total variable cost = $247* 2208= $545,376
Fixed cost = $589000*(100%-5%)
$559550
Operating cash flow = (1656000-545376-559550) =551,074
