Answer:
$48
Explanation:
Calculation the minimum transfer price that the Heating Division should accept
Using this formula
Minimum transfer price=[New UVC + (Lost USP - Regular UVC)]
Let plug in the formula
Minimum transfer price=$28+ ($40- $20)
Minimum transfer price=$28+20
Minimum transfer price= $48
Therefore the minimum transfer price that the Heating Division should accept is $48
Answer:
Journal entry on February 1:
Debit Prepaid Insurance $729,600
Credit Cash $729,600
Annual adjusting entry on June 30:
Debit Insurance Expense $152,000
Credits Prepaid Insurance $152,000
Explanation:
On February 1, Procter & Gamble (P&G) paid $729,600 in advance for 2 years’ insurance coverage. The company records the insurance as the prepaid Insurance:
Debit Prepaid Insurance $729,600
Credit Cash $729,600
On Jun 30, the last day of the following 5 months, the company records an adjusting entry that Credits Prepaid Insurance for $152,000 ($729,600 divided by 24 months times the 5 months that will be prepaid as of Jun 30) and Debits Insurance Expense for $152,000
Debit Insurance Expense $152,000
Credits Prepaid Insurance $152,000
Answer:
Total spoiled units = 7000
Normal spoilage total = 3500
Abnormal spoilage total = 3500
Total cost per equivalent unit = $3.80
Cost of goods manufactured = $224,000
Ending WIP = $201,165
Explanation:
Kindly check attached pictures
Answer:
d.) discretionary expenses
Explanation:
We can explain going further into what is each item.
<u>A and B are your income </u>(for this question don’t sweat about the difference between gross and realized). They will constitute all the money you have in that period (the period will depend on the regularity of your income, it could be weekly, monthly, etc.).
Your fixed expenses are the things you will expend money on which, no matter what happens, will not change (it could be your rent, tax, health insurance, etc.).
Discretionary expenses, however, are costs that are things that you WANT, not NEED. It could go anywhere from a new shoe to a new boat (if you´re feeling rich, that is lol). That kind of expense will impact your available money (hey, nothing is free) but is not part of your budget as it is not a planned cost.
However, is important to note that if you wanna be super Monica Geller with your money you should forecast your discretionary expenses. Using your history as a base for calculating will eliminate most of the margin error.
The availability of many substitutes increases the elasticity of demand for a good. With the presence of substitutes the consumer has more options to seek out if there are price changes, therefore, the consumer is highly responsive to price changes and thus the elasticity of the demand curve is higher if there are many substitutes.
