Answer:
1. b. $120,000
2. a. $62,000
3. a. $58,000
Explanation:
1. Since the Subsidiary has <u>sold the entire inventory to an unaffiliated company</u> on November 21, 20X8, Then the sales to the group will be the amount at which a third party has bought it which is $120,000
2. Since the Parent had produced the inventory which has now been entirely sold out of the group, for $62,000. then the cost of goods sold to the group is the amount at which the parent produced it.
When the group is being consolidated all inter-company profits and transfer costs are eliminated and ignored to get the true picture of the transactions at arms length.
3. The consolidated amount of net income will be the amount at which the group bought it less the amount at which they sold it which is $120,000 - $62,000 = $58,000
Firstly, Loan A has a lower interest rate (0.25% lower) and therefore the interest payed is lower ($209.49 cheaper) and of course the total paid is lower for Loan A.
The benefit of Loan B is the term of payment is longer and the monthly repayments are lower. This could be good for someone working minimum wage due to having a low income.
In conclusion, I think Loan A would be better due to the interest being lower which is always a plus for loans.
Explanation:
<h3>are you from India friend </h3>
Answer:
learning effects
Explanation:
Learning effects: In economics, the term "learning effects" is described as the process through which specific education is considered as increasing productivity and therefore results in producing higher wages. It gives an insight to the company to develop some competitive advantage by decreasing some of the production costs. However, the employees are focused on working more efficiently, decrease in the number of wastes and defects on several products.
In the question above, the given statement signifies the leaning effects.
Answer:Please refer to the explanation section
Explanation:
The question is incomplete, amounts of production costs like Direct Material, direct labour and Variable/Fixed manufacturing overheard were not given, we will explain the absorption cost and variable cost in detail so that the student would be able to calculate absorption cost and variable cost balances easier.
Absorption costing Method
Total Manufacturing costs are allocated to Finished goods Product. Absorption Costing method assigns or allocates the total cost of Manufacturing or total production costs to units of Finished Goods produced. each unit of finished goods thus represents total costs of production per unit or Total Manufacturing/Production cost is the Balance of Finished Goods.
Total Manufacturing/Production cost = direct labor cost + direct material cost + variable and fixed Manufacturing overheads cost.
Finished Goods Balance = Total Manufacturing/Production cost
A unit of Finished Goods = Total Manufacturing costs/units produced
Variable costing method
Variable costing method fixed manufacturing costs are treated as an expense, Variable Manufacturing costs are the only allocated to inventory. The value or Balance of inventory consist of Variable Manufacturing cost like Direct labor, Direct Material and Variable Manufacturing costs. Finished Goods Balance equals total Variable Manufacturing cost
