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2 years ago

Pablo Company calculates the cost for an equivalent unit of production using costing.

Business

1 answer:

mezya [45]2 years ago

7 0

Answer:

$5.275 & $5.40

Explanation:

According to the scenario, computation of the given data are as follows:

Weighted Average Method :

Units Physical Direct Conversion

Completed & transferred 70,000 70,000 70,000

Ending WIP 30,000 30,000 24,000

( 30,000 × 80%)

Equivalent production Unit 100,000 100,000 94,000

So, Cost per equivalent unit under weighted average method can be calculated as:

Direct material Conversion Total cost

$1.825 $3.45 $5.275

(60,000 + 122,500) (25000+299300)

= (182,500 ÷ 100.000) =(324300 ÷ 94,000)

FIFO Method

Units Physical Direct Conversion

Beginning WIP 30,000 0 18,000

(30,000 × 0%) (30,000 × 60%)

Started & completed 40,000 40,000 40,000

Ending WIP 30,000 30,000 24,000

(30,000 × 80%)

Equivalent production Unit 100,000 70,000 82,000

So, Cost per equivalent unit under FIFO method can be calculated as:

Direct material Conversion Total cost

$1.75 $3.65 $5.40

(122,500 ÷ 70,000) (299,300 ÷ 82,000)

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A set of speakers may be purchased now for $1000 or by making a down payment of $150 and additional payments of $100 at the end

victus00 [196]

Answer:

the nominal annual interest rate on the payment plan is 15%

Explanation:

According to the question, a one-time payment for the speakers will cost $1,000

An installmental payment will have a $150 down payment and then another $100 fro ten subsequent months.

Calculating the total payment at tthe end of the payment plan will give

$150 + ($100 x 10months)

we have, $150 + $1,000 = $1,150.

This shows that at the end of the payment plan, the set of speakers would have cost $1,150 instead of $1,00 one-time payment.

Step 2:

To calculate the interest rate, we subtract the one-time price from the payment plan price and express it as a percentage of the one time price to get tthe interest rate.

$1,150-$1,000 = $150

then we have,

($150 ÷ $1,000) × 100%

= 0.15 × 100%

- 15%

The nominal annual interest rate is 15%.

Cheers.

4 0

3 years ago

Jada converted her personal residence to rental property in 2018. She purchased the property in 2014 for $110,000, of which $10,

creativ13 [48]

Answer:

a)Jada's basis for depreciation in the property is NIL.

b) Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.

Explanation:

Due to a decline in the property values over the past few years Jada has converted her personal residence to rental property and/or investment property which is a subject dealt within IAS 40 (Investment property).

According to IAS 40 an investment property is land or building held to earn rentals or for capital appreciation or both rather than use in the entity. IAS 40 requires to initially measure investment property at cost and subsequently may either measure at cost or fair value model. Fair value is normally established by prevailing market prices.

IAS 40 also mentions that if an asset is revalued to fair value the gain and loss should be recorded in statement of profit and loss and 'NO DEPRECIATION IS CHARGED ON THE ASSET AFTER THE FAIR VALUE MEASUREMENT'.

Therefore, following the instructions laid out by IAS 40 Jada's basis for depreciation in the property is NIL.

2) Personal property with no intrinsic value:

Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.

Lets first understand what intrinsic value is. Intrinsic value of an asset refers to the market led and/or market-driven price of that asset. This means those assets which don't have an active market for sale and purchase will have no intrinsic value. This is absolutely the case with intangible assets, because most intangible assets are unique and uncommon, such as, GOODWILL, PATENTS, COPYRIGHTS, therefore due to the uniqueness and exclusivity of such assets an active market place doesn't exist therefore it's hard to determine an intrinsic value for such kind of assets/ properties.

5 0

3 years ago

"Since transfer payments by government are not associated with the production of goods and services, they are not included in G

rosijanka [135]

Answer:

true

Explanation:

The transfer payment comprises of both a donor as well as a receiver, with the sender giving up something that is of worth and receiving anything in return, unlike the swap agreement that equally benefits all the parties concerned.

Transfer payments cover Social Security, Medicaid, unemployment compensation, social programs and assistance. They should not be added in GDP, as they are not payments for goods or services, but rather ways to distribute money for social purposes.

8 0

3 years ago

Read 2 more answers

Oriole Company issues $200,000, 20-year, 9% bonds at 104. Prepare the journal entry to record the sale of these bonds on June 1,

user100 [1]

Answer:

Dr Cash $208,000

Cr Bonds payable $200,000

Cr Premium on bonds payable $8,000

Explanation:

Preparation of the journal entry to record the sale of these bonds on June 1,

Based on the information given we were told that the company issues the amount of $200,000 at 104 which means the that the journal entry to record the sale of these bonds on June 1 will be:

Dr Cash $208,000

(2,000 × $104)

Cr Bonds payable $200,000

(2,000 × $100)

Cr Premium on bonds payable $8,000

(2,000 ×$4)

Note:-

$200,000/100 =$2,000

3 0

3 years ago

Assume that Jane’s company does not have the $50 million in cash to purchase the building. The company mortgage with the bank. T

bogdanovich [222]

Answer:

The agreement among the Jane and bank personally is the Guaranty

Explanation:

As Jane want to take a loan of $50 from bank in order to purchase a building but bank is worried regarding the financial health of the company so in order to grant the loan or mortgage, both bank and Jane entered into an agreement which states that the Jane would be personally liable for the payment if company defaults. So, the agreement in which they agreed is the guaranty given by Jane to bank.

6 0

3 years ago