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Anit [1.1K]
3 years ago
15

On December 31, Strike Company traded in one of its batting cages for another one that has a cost of $500,000. Strike receives a

trade-in allowance of $11,000. The old equipment had an initial cost of $215,000 and has accumulated depreciation of $185,000. Depreciation has been recorded up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss on this transaction
Business
1 answer:
photoshop1234 [79]3 years ago
4 0

Answer:

the amount of loss is $19,000

Explanation:

The computation of the amount of the gain or loss is shown below:

Old equipment cost is

= Initial cost of the equipment - accumulated depreciation

= $215,000 - $185,000

= $30,000

Now the gain or loss is

= Book value of an equipment - trade in allowance

= $30,000 - $11,000

= $19,000

hence, the amount of loss is $19,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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The Mixing Department of Tasty Foods has 50,000 equivalent units of materials and 36,000 equivalent units of conversion costs fo
Serhud [2]

Answer:

Direct material cost for each equivalent unit =$1.04

Conversion cost for each equivalent unit = $0.40

Explanation:

Given data:

direct material cost = $52000

units of material = 50000

Equivalent units for october =  36000

conversion cost for october = $21600

direct material cost for each equivalent unit = direct material cost/ equivalent conversion units

direct material cost for each equivalent unit = 52000/50000 = $1.04

conversion cost for each equivalent unit = conversion cost/ equivalent cost

conversion cost for each equivalent unit =21600/36000 = $0.40

4 0
3 years ago
LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.4 hours of direct labor at the r
satela [25.4K]

Answer:

Total direct labor hours= 102,144

Total direct labor costs= $2,042,880

Explanation:

Giving the following formula:

Standard quantity= 2.4 hours

Standard rate= $20 per hour

<u>First, we need to calculate the production required:</u>

Production= sales + desired ending inventory - beginning inventory

Production= 43,000 + 110 - 550

Production= 42,560 units

<u>Now, the direct labor budget:</u>

Total direct labor hours= 42,560*2.4= 102,144

Total direct labor costs= 102,144*20= $2,042,880

6 0
3 years ago
Sabrina decided to start selling lemonade on her street. The other kids in the neighborhood noticed that Sabrina was making a lo
nikklg [1K]

Answer:

The correct answer is (b)

Explanation:

The kids opened their own lemonade stand which led to an increase in the overall supply of lemonade. The increase in the overall supply of lemonade will lead to a decrease in the equilibrium price. Now, Sabrina must decrease the price of lemonade to compete with competitors. Increase in market competition always leads to a decrease in equilibrium price.

4 0
3 years ago
Kim Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old E
Ulleksa [173]

Answer:

Kim Inc.

The net advantage (disadvantage) of replacing the old equipment with the new equipment is:

= $7,500.

Explanation:

a) Data and Calculations:

                                                     Old Equipment     New Equipment  

Purchase price                                 $262,500              $450,000

Accumulated depreciation                  95,000               0  

Annual operating costs                     300,000                245,000

Total operating costs for 10 years 3,000,000             2,450,000

Salvage                                                 92,500             0

Total incremental cost                 $2,907,500           $2,900,000

b) The net advantage obtained by Kim for replacing the old equipment with the new equipment is $7,500 ($2,907,500 - $2,900,000).  Note that the purchase price of the old equipment with its accumulated depreciation are not relevant costs.  This case is worked out without taking into account the time value of money.  Assuming that the present value of the cash flows was computed, a different result and conclusion would be reached.

4 0
3 years ago
If your superior tells you that she will offer you a raise provided you perform additional work beyond the requirements of your
KengaRu [80]

Answer:

reward power

Explanation:

Reward power -

It refers to as the method of using rewards , so that the employee follows a particular instructions , is referred to as reward power .

The reward acts as a bait so that the employee can follow any order of the senior .

As from the given scenario of the question ,

The person works some extra hours in order to get a good increment .

Hence , from the given scenario of the question ,

The correct answer is reward power .

3 0
3 years ago
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