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3 years ago

Mallory Industries has the following cost information for the year just ended:

Business

1 answer:

Leona [35]3 years ago

3 0

Answer:

Results are below.

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

First, we need to calculate the unitary cost value:

Unitary cost= (6 + 2 + 1.5) + 40,000/10,000

Unitary cost= $13.5

Now, the income statement:

Sales= 9,100*50= 455,000

COGS= (13.5*9,100)= (122,850)

Gross profit= 332,150

Total administrative costs= (3*9,100) + 50,000= (77,300)

Net operating income= 254,850

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Karl Corporation was organized on January 2, 2018. During 2018, Karl issued 40,000 shares at $24 per share, purchased 6,000 shar

labwork [276]

Answer:

The answer is $1,404,000

Explanation:

Total amount realized from the issuance: 40,000 shares x $24

= $960,000

Treasury stock repurchased:

6,000 shares x $26

=$156,000

Net income = $600,000

The total amount of stockholders' equity at December 31, 2018 is:

Net income + amount realized from issuance - amount of treasury stock

$600,000 + $960,000 - $156,000

$1,404,000

3 0

3 years ago

Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6;

tresset_1 [31]

Answer:

Contribution per unit of scare resource (in hour) = $24 per hour

Explanation:

The question falls under the limiting factor analysis

When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that it maximizes the contribution per unit of the scare resource.

Therefore Santario Company should allocate the machine hours to maximize the contribution per unit of machine hour.

Contribution per unit of scare resource is determine as follows:

Contribution per unit of scare resource for Model K-3

Contribution per unit of Model K-3 = $6

Machine time per unit = 15 minutes

Contribution per unit of scare resource in minutes

=Contribution per unit/Machine time per unit

= 46/15 minutes

= $0.4 per minute

Contribution per unit of scare resource (in hour)

$0.4 per minutes× 60

= $24 per hour

7 0

3 years ago

2. When the economy is in a recession, the Federal Reserve usually cuts interest rates. Why would the federal government do this

Airida [17]

The purpose of the Federal Reserve cutting interest rates during a recession is to encourage borrowing (borrowing becomes cheaper) and in this way especially for companies they may spend more money then on improvements, new products etc so the economy theoretically will be stimulated to counteract the recession.

7 0

3 years ago

Which of the following statements is true?-direct costs can easily be traced to a cost object; indirect costs cannot be-both dir

Andru [333]

Answer: Statement A

Explanation: Direct cost are those costs which are variable in nature and can be allocated to the total units of output produced, these are easily traceable. Examples - direct material, direct labor and piece rate wages etc.

Indirect costs are those cost which cannot be allocated to the number of units produced on individual basis unlike direct cost these costs can be either fixed or variable in nature. Examples - rent expenses, administrative expenses.

From the above explanation we can conclude that statement A is correct.

5 0

3 years ago

Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 8% is C

sertanlavr [38]

Answer:

C. A smaller proportion of the last monthly payment will be interest, and a larger proportion will be principal, than for the first monthly payment.

Explanation:

I prepared a summary of an amortization schedule to explain this:

principal = $100,000

r = 8% annual

n = 360 months

first payment = $733.76: $666.67 are interests and only $67.09 reduces principal

second payment = $733.76: $665.95 are interests and only $67.54 reduces principal

last payment = $733.76: $4.90 are interests and only $728.86 reduces principal to $0

6 0

3 years ago