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2 years ago

Preparing a Cost of Goods Sold Budget

Business

1 answer:

Art [367]2 years ago

4 0

Answer:

Direct Materials $ 14*20,000 = $ 28000

Direct Labor $ 14*1.9* 20,000 = $ 532,000

Variable Overhead $ 14*1.9*1.2*20,000 = $ 638400

Fixed Overhead $ 14*1.9*1.8*20,000 = $957600

Total Manufacturing Cost $ = 2156000

Less: Ending Inventory $ 107.8*730 = 78649

Cost of Goods Sold $2077306

Working:

Total Manufacturing Cost $ per unit = 2156000/ 20,000= 107.8 $

Ending Inventory $ 107.8*730 = 78649

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A young couple is planning for the education of their two children. They plan to invest the same amount of money at the end of e

laila [671]

Answer:

The couple must save $ 6,598 each year

Explanation:

Calculating the payment amount:

Cost per year = $25,000 per each child

Cost for 4 years = $25,000 × 4 = $100,000

For the oldest child, the college will begin in 16 years and the second child the college will begin in 18 years.

Calculating the amount to be deposited each year for the oldest child.

Using Microsoft Excel PMT function

Rate = 8%

N = 16

PV = 0

FV = -100000

= $3,298

Therefore, they must deposit $3,298 each year for their oldest child.

Calculating the amount to be deposited each year for the second child:

Using Microsoft Excel PMT function

Rate = 8%

N = 18

PV = 0

FV = -100000

= $2,670

Therefore, they must deposit $2,670 each year for their second child.

Total sum to be saved per year = $3,298 + $2,670 = $6,598

6 0

3 years ago

The balance in the prepaid insurance account before adjustment at the end of the year is $27,000. Journalize the adjusting entry

Radda [10]

Answer:

(A) Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

Being entries to recognize insurance amortization expense for the year.

(B) Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

Being entries to recognize insurance amortization expense for the year.

Explanation:

Prepaid insurance account before adjustment = $27,000

(A) the amount of insurance expired during the year is $20,250

To account for the expired amount,

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

Being entries to recognize insurance amortization expense for the year.

(B) the amount of unexpired insurance applicable to future periods is $6,750

Amount expired = $27,000 - $6,750

= $20,250

To account for the expired amount such that the amount of unexpired insurance applicable to future periods is $6,750,

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

Being entries to recognize insurance amortization expense for the year.

4 0

3 years ago

Zenith Investment Company is considering the purchase of an office property. It has done an extensive market analysis and has es

ValentinkaMS [17]

Based on the NOIs from Year 1 to 8, the value of the property today to Zenith Investment Company will be $13,221,383.94.

<h3>What is the value of the investment today?</h3>

Because the investment will be sold in 7 years, we need to find the terminal value from year 8 and above considering the indefinite growth rate of 3%.

Terminal value:

= Year 8 cashflow / (Return rate - Growth rate)

= 1,459,170 / (12% - 3%)

= $16,213,000

This amount should be added to the Year 7 cashflow to get:

= 16,213,000 + 1,419,000

= $17,632,000

The value today can be found by taking all the cashflows to their present value and summing them:

= 1,240,000/ 1.12 + 1,240,000 / 1.12² + 1,240,000 / 1.12³ + 1,280,000 / 1.12⁴ + 1,330,000 / 1.12⁵ + 1,380,000/ 1.12⁶ + 17,632,000⁷

= $13,221,383.94

Find out more on present value at brainly.com/question/17199492.

7 0

1 year ago

Jax Recording Studio purchased $8,200 in electronic components from Music World. Jax signed a 90-day, 10% promissory note for $8

Hunter-Best [27]

Answer:

World's journal entry to record the sales transaction is:

<em>Note Receivable ; Jax Recording Studio $8,200 (debit)</em>

<em>Sales Revenue $8,200 (credit)</em>

Explanation:

Music World is the seller and must recognize Revenue following the sale.The Revenue is initially recognized at the value of sale of $8,200. Music World must also recognize an Asset on the promissory note signed to the value of $8,200.

6 0

2 years ago

Which one of the following businesses would be the most difficult to get funding for

Gennadij [26K]

You have not suggested a list considering your question asks "..following businesses..."

8 0

2 years ago