Answer:
Journal Entry to reflect the event is as follow;
Dr. Cr.
Utility Expense $520
Utility bill payable $520
Explanation:
Utility bill is received it means the expense is accrued and it is not due until the month end so a liability will be created and will be paid next month.
Answer:
D. Treated as a loss in the period incurred.
Explanation:
The process-costing system is used by firms that produce goods that goes through a set of manufacturing departments i.e it's used when firms mass produce nearly identical or similar units through various processes.
Under process-costing system, direct costs of production are accumulated, summarized, and then assigned to all the units produced during the period.
Thus, a single product cost is calculated by dividing process cost in each manufacturing department by the respective units produced during the production period.
Some organizations that use the process-costing system are oil refineries, chemical processing companies, eraser manufacturing companies, and food production companies.
In a process-costing system, the cost of abnormal spoilage should be treated as a loss in the period incurred.
The abnormal spoilage refers to the cost exceeding normal level, associated with spoiled units of a manufacturing process. It should be treated as a loss in the period incurred because it cannot be recovered
Answer:
Explanation:
Let’s use the tax rate schedule for 2019
Since Chuck status is single and earned $80,750.
He would pay 10 percent on the first $9,700 of his earnings ($970);
Then 12 percent on the other earnings from $9,701 to $39,475 ($3,573); and then 22 percent on the remaining income, up to $80,750 ($9,081).
Chuck total tax bill would be $13,624. Divide that by adding his earnings of $80,750 and interest of $30,750 and you get an effective tax rate of 12.22 percent.
Weighted average cost of capital = [Cost of equity * Proportion of equity] +[Cost of preferred stock * Proportion of preferred stock] +[Cost of debt *(1-tax rate)*proportion of debt]
Cost of equity =0.14
Proportion of equity = 75/150 = 3/6
Cost of preferred stock = 0.08
Proportion of preferred stock = 25/150 = 1/6
Cost of debt = 0.06
Tax rate = 0.34
Proportion of debt = 50/150 = 2/6
Weighted average cost of capital =[0.14*3/6]+[0.08*1/6]+[0.06 (1-0.34)*2/6]
Weighted average cost of capital = 0.07+0.013+0.0128 = 0.0958 = 9.58%
