Answer:
Incremental net income from further processing is $566,600
Explanation:
First of all, it would be necessary to compute profit from selling the product at cut off point and profit when it is further processed in order to determine whether or not it is worth processing further:
Sales revenue $400,000
cost of production(19,000*$25) $475,000
Loss from selling ($75,000)
Further processing:
sales revenue
Product B(5200*$108) $561,600
Product C(11,000*$55) $605,000
Total revenue $1,166,600
total cost
cost of production ($475,000)
cost of further processing ($200,000)
total costs ($675,000)
Profit $491600
By further processing the incremental net profit is $566,600
($491,600-(-$75000)
Answer:
B net income is overstated, assets are overstated, and stockholders' equity is overstated
Explanation:
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
Hence, where ending inventory balance is overstated, cost of goods sold is understated. When cost of goods sold is understated, gross and net incomes are overstated. Hence owner's equity is overstated and asset overstated.
Answer:
It helps giving you the ability to choose what you think is best for your business
Explanation:
Vic, using the money tree metaphor is awesome in order to explain. Think about your free enterprise (let’s say… a store that sells trees!).
What you need in order to start and run a business? A place to sell those trees, employees, products, infrastructure, etc., and capital to fund all that. All that business plans and models that you will develop in order to have a successful business will require that you make economic decisions, actions. And, in order to make those decisions, you need economic liberty, which is exactly the ability one has to make economic decisions without political, economic or social blocks.
Imagine that in your region you can only sell trees with red leaves, or your trees are taxed much more than trees coming from overseas, or that employment law requires that no employee gets near a plant (who knows, it could be to prevent allergic season!). That would make super hard to develop your business right?
That’s how economic liberty could help you grow your money tree; into giving you the ability to choose what you think is best for your business.
Answer:
- <u>std rate $30.64</u>
- <u>efficiency variance $6,128.00</u>
Explanation:
We will work the rate variance to obtain the standard rate:
actual rate $29.20
actual hours 11,700
difference $1.44
rate variance $16,800.00
<u>std rate $30.64</u>
<u></u>
<u>Now we can solve for the labor efficiency variance:</u>
std hours 11700
actual hours 11500
std rate $30.64
difference 200
<u>efficiency variance $6,128.00</u>
The diference is positive, sothe variance is favorable.
<span>When buying any item in most stores, you are charged sales tax. Retailers, even smaller businesses are charged taxes for running their business. Businesses are able to pass on part of the burden to their paying customers in way of sales tax. So when you see an item marked as 99 cents, you will be paying slightly more than a dollar in almost all cases.</span>
