Answer:
Option (C) 160,000
Explanation:
Data provided in the question:
Appraisal value = $154,000
Offer price = $172,000
Cash = $40,000
Note payable = $45,000
Mortgage amount = $75,000
Now,
Cost basis recorded in the buyer's accounting records to recognize this purchase will be
= Cash + Note payable + Mortgage amount
= $40,000 + $45,000 + $75,000
= $160,000
Hence,
Option (C) 160,000
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Answer:
The numbers of product A must be sold to break-even are 800 units
Explanation:
The break-even point is calculated by using following formula:
Break-even point in units = Fixed expense/(Selling price per unit-Variable expense per unit) = Fixed expense/weighted-average contribution margin per unit = $400,000/$100 = $4,000 units
Elise Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%.
The numbers of product A must be sold to break-even = $4,000 x 20% = 800 units
Answer:
Equivalent units for materials in beginning work process is 6,940 units Equivalent units for conversion in ending work process is 6,800 units
Explanation:
Beginning work process:
Equivalent units for materials = 6,100 + (1,400 × 60%) = 6,940 units Cost per equivalent unit for materials = ($7,800 + $102,700) ÷ 6,940 = 15.92
Ending work process:
Equivalent units for conversion = 6,100 + (1400 × 50%) = 6,800 units
Cost per equivalent unit for materials = ($9,100 + $184,000) ÷ 6800 = 28.40
Cost of ending work in process = (1,400 × 60%) × 15.92219 +(1400 × 50%) × 28.39706
= 33,253 (Rounded off)
Answer:
D. 0.85
Explanation:
This can be calculated as follows:
Asset turnover ratio = Net sales ÷ Average total assets = $850,000 ÷ 1,000,000 = 0.85
This implies that Huge Cart Inc. has been using its assets to generate revenue 0.85 times.