A high level of WIP can make a manufacturer vulnerable if the item’s shelf life expires before it is sold.

Hailey Wilson loves to cook and receives unqualified praise whenever she prepares a meal for someone. Encouraged by these compli

beks73 [17]

Answer:

.E. sole proprietorship.

Explanation:

A sole proprietorship, also known as the sole trader, individual entrepreneurship, or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity. Sole Proprietorship examples include small businesses, such as a single person art studio, a local grocery, or an IT consultation service. The moment you start offering goods and services to others, you form a Sole Proprietorship. It's that simple. Legally, there is no distinction between you and your business.

5 0

3 years ago

Read 2 more answers

Utopia Corporation provides $6,000 worth of lawn care on account during the month. Experience suggests that about 3% of net cred

Rasek [7]

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

Bad debt expense Dr, $180

To Accounts receivable $180

(Being bad debt expenses is recorded)

Working Note:-

Bad debt expense = $6,000 × 3% = $180 is estimated

Therefore for recording the bad debt expenses we debited bad debt and credited accounts receivable.

8 0

3 years ago

Simpson Enterprises is considering a new project with revenue of $325,000 for the indefinite future. Cash costs are 63 percent o

melamori03 [73]

Answer:

net present value = 133808.82

Explanation:

solution

we find here present value of cash inflows that is

Cash inflows = $325,000

and

cash costs @63% = $204,750

so

cash flow before tax = 325,000 - 204,750 = $120,250

and Tax @21% = $25,252.5

so

Cash flow after tax will be = $120,250 - $25,252.5 = $94,997.5

Discounting factor is = 0.17

Present value of cash inflows = (cash flows after tax ÷ discounting factor)

Present value of cash inflows = $\frac{94997.5}{0.17}$

Present value of cash inflows = $558808.82

so

net present value = Present value of cash inflow - present value of cash outflows

put here

net present value = $558808.82 - $425,000

net present value = 133808.82

4 0

3 years ago

Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $

Tcecarenko [31]

Answer:

Applied Overhead is higher than actual overhead. Hence, manufacturing overhead is $ 4,000

Explanation:

Given data:

estimated overhead = $2,40,000

Labor cost =$2,80,000

Direct labor cost = $3,00,000

$Overhead\ rate = \frac{Estimated\ Overhead}{Estimated\ direct\ labor\ cost}$

$= \frac{2,40,000}{3,00,000}$

= $ 0.80 per direct labor cost

$Applied\ Overhead = Actual\ Labor\ cost\times Overhead\ rate$

$= $ 2,80,000\times $ 0.80 Per direct labor cost$

=$ 2,24,000

Actual Overhead cost = $ 2,20,000

Applied Overhead is more than actual overhead. Hence, manufacturing overhead is $ 4,000.

6 0

4 years ago

The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future nee

belka [17]

Answer:

During the first year, the marginal cost equals approximately the minimum EUAC cost. This is why the minimum cost of EUAC to maintain the defender throughout the year is $21,000. Since the minimum EUAC cost to maintain the defender the first year is less than the minimum EUAC cost to the challenger, the defender should not be substituted. This means, it is not economically feasible to make the replacement at this time.

Explanation:

According to the exercise, it is necessary to evaluate to know if it is economic to replace the defender by the challenger. For the calculation, the defender's information is: the defender's market value up to $3000. The expenses are $20000. The information regarding the challenger is: the installation cost $30000, the annual expenses $ 16000, the surrender value $ 2000, the economic life is 12 years, and the interest rate before taxes is 15%.

The minimum EUAC for the challenger is equal to:

$M_{EUAC} =installation-cost(A/P,i,n)+annual-expenses-salvage-value(A/F,i,n)\\M_{EUAC}=30000(A/P,15percent,12)+16000-2000(A/F,15percent,12)\\M_{EUAC}=(30000*0.1845)+16000-(2000*0.0345)=21466$

The minimal cost is equal to:

$M_{cost} =loss-in-marker-value-during-first-year+expenses-during-first-year\\M_{cost}=1000+20000=21000$

3 0

3 years ago