Answer:
The allowable medical deduction after Adjusting Total Income is $0
Explanation:
Particulars Amount
Drugs and Medicines prescribed by doctors $300
Add:- Health insurance premium $750
Add:- Doctors Fees $2,250
Add:- Eyeglasses $75
Less:- Reimbursement of doctors fees received <u>($900)</u>
$2,475
Less :- Adjusted Gross Total Income of $25,000 <u>$2,500</u>
Allowable medical deduction after adjusting -25
total Income
Therefore, as the resultant amount is negative. The allowable medical deduction after Adjusting Total Income is $0
Workings
Adjusted Gross Total Income of $26,000
= $26000 × 10%
= $2,600
<u>Explanation:</u>
A. Expenditure on research and development. > Investment decision.
Reasearch and development (R&D) is an investment cost because the results of such research can benefit the company long-term.
B. A bank loan. > Financial asset.
A bank loan involves cash, and could be rightly called a financial asset.
C. Listed on a stock exchange. > Public corporation.
Only public corporations are listed on stock exchange, an example is Microsoft.
D. Has limited liability. > Corporation
E. Responsible for bank relationships. > The Treasurer.
F. Agency cost. > Agency cost
Answer:
The year-end inventory in units = 27,400
Explanation:
total units in warehouse = 24,000
damaged units = 3,400
Purchased units = 2,400
consigned units = 4,400
The year-end inventory is calculated as follows:
Year-end inventory = total units in warehouse - damaged units + purchase units + consigned units
= 24,000 - 3,400 + 2,400 + 4,400 = 27,400 units.
<em>Please note </em>
<em>1. using Free on Board (FOB) shipping point agreement, the buyer claims ownership of the goods the moment it is shipped from the seller's shipping point, and is recorded as inventory even before it arrives at the buyer's receiving point.</em>
<em>2. consigned goods are goods that are part of inventory, but is located with a different distributor other than the owner of the goods.</em>
Answer:
C. $16 of overhead cost should be assigned to each standard handbag and $40 of overhead cost should be assigned to each deluxe bag.
Explanation:
Given that
Total indirect manufacturing expected = $52000
And,
Total hours required to manufacture handbags is
= (2,000 standard handbags × 2 hours) + (500 deluxe handbags × 5 hours)
= 4,000 + 2,500
= 6,500
So,
Indirect cost per hour is
= $52000 ÷ 6500
= $8 per hour
Now
Cost allocated to standard handbags is
= $8 × 2
= $16
And, for deluxe handbag it is
= $8 × 5
= $40