Prepared by:

Maxwell and Smart are forming a partnership. Maxwell is investing a building that has a market value of $89,000. However, the bu

gogolik [260]

Answer:

The correct option is D,$42,000

Explanation:

The balance on Maxwell capital account=market value of building contributed less the mortgage on the building

market value of the building is $89,000

Mortgage on the building is $47,000

balance on Maxwell capital account=$89,000-$47,000

balance on Maxwell capital account=$42000

The correct option is D.

Care must taken so that one does include the cash of $38,000 contributed by Smart in Maxwell's capital account balance calculation,otherwise one would have concluded that option E,$80,000($42,000+$38,000)

6 0

3 years ago

Inventory records for Marvin Company revealed the following: Date Transaction Number of Units Unit Cost Mar. 1 Beginning invento

lakkis [162]

Answer:

Ending inventory cost= $5,556.92

Explanation:

Giving the following information:

Mar. 1 Beginning inventory 900 $ 7.26

Mar. 10 Purchase 520 7.76

Mar. 16 Purchase 452 8.36

Mar. 23 Purchase 510 9.06

Units sold= 1,760

<u>Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the costs of the last units incorporated into inventory:</u>

<u></u>

Units in ending invnetory= 2,382 - 1760= 622

Ending inventory cost= 510*9.06 + 112*8.36

Ending inventory cost= $5,556.92

3 0

2 years ago

What side of the manufacturing overhead account is actual manufacturing overhead entered on?.

Ludmilka [50]

Applied overhead goes on the credit side of the Manufacturing overhead of $120,700 was applied to production using the company's predetermined overhead rate

8 0

1 year ago

Lawler Manufacturing Company expects annual manufacturing overhead to be $810,000. The company also expects 45,000 direct labor

8_murik_8 [283]

Answer:

A. Overhead allocation rates based on direct labour hours = $18 per direct labour hour

B. Overhead allocation based on direct labour cost = 0.6

C. Overhead allocation rates based on machine time = $40 per machine time hour

Explanation:

Here, we are interested in having some calculations done; We proceed as follows;

From the question, the total overhead = 810,000

Mathematically;

a. The overhead allocation rates based on direct labour hours = Amount of total overhead/Total direct labour hours

= 810,000/45,000 = $18 per direct labour hour

b. The overhead allocation based on direct labour cost = Amount of total overhead / Total direct labour costs

= 810,000/1,350,000 = 0.6

C. Overhead allocation based on Machine time = Amount of total overhead/total machine time hours = 810,000/20,250 = $40 per machine time hour

7 0

3 years ago

The Campus Collective company, which creates unique apps for colleges, has recently lost three large university clients that mad

kirill115 [55]

Answer:

Relative wage coordination argument

Explanation:

Relative wage coordination argument states that even though workers are willing to accept wage cuts due to economic hardships. Wide implementation of wage cuts is hard because workers believe that not everyone will experience wage cuts.

So they will will fight against implementation of wage cuts.

In this scenario Campus Collective company has recently lost three large university clients that made up 40% of its total revenue. This has hit the company hard and management finds it necessary to reduce staff or wages.

Although employees are aware of the hardship they still fight against management on wage cuts because employees are also not sure if other people working their same jobs in the economy are getting reduced wages.

5 0

3 years ago