<h3><em>Answer:</em></h3><h3><em>Answer:For a self-employed individual, contributions are limited to 25% of your net earnings from self-employment (not including contributions for yourself), up to $61,000 for 2022 ($58,000 for 2021; $57,000 for 2020). You can calculate your plan contributions using the tables and worksheets in Publication 560</em></h3>
Answer:
The use of a trial balance:
a) This error will not cause the two sides of the trial balance to disagree. A compensating error has occurred, because the Cash Account should have been credited and the Salaries and Wages Expense debited with $600.
b) This error will cause the two sides of the trial balance to disagree. The amount debited is not the same amount credited. The Accounts Receivable should have been credited with $900, not the Service Revenue.
Explanation:
a) The trial balance ensures that the total values of the debit and credit sides agree. It shows that accounts have been correctly debited and credited in the general ledger, with equal amounts.
b) Compensating errors arise when two accounting errors offset themselves, because the same mistake made on the debit side is made on the credit side
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Chef City projects sales of 625 10-inch skillets per month. The production costs are $5 per skillet for direct materials, $2 per skillet for direct labor, and $3 per skillet for manufacturing overhead. Chef City has 60 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 25% of the next month's sales. Selling and administrative expenses for this product line are $1,000 per month. Chef City is budgeted to produce 721 skillets in July with a $10 production cost per skillet.
COGS= units sold* manufacturing cost
COGS= 625*10= 6,250
Answer:
Optimal qauntity is 4 Units
Explanation:
Here, we have to decide quantity of production at which maximum profit can be generated. For this reason we will have to contruct a table which will help us to calculate Marginal Benefit and Marginal cost. This table is given as under:
Quantity Total benefit Marginal benefit Total Cost Marginal Cost
0 Units 0 0 0 0
1 Units 16 16 9 9
2 Units 32 16 20 11
3 Units 48 16 33 13
4 Units 64 16 48 15
5 Units 80 16 65 17
We can see that at 4 Units, marginal revenue is almost equal to marginal cost. At this level of production, we have maximum benefits generated which is:
Maximum Benefit Generated = ($16 - $9) + ($16 - $11) + ($16 - $13) + ($16 - $15) = $7 + $5 + $3 + $1 = $16 for 4 Units
We can also cross check by considering 5 units case to assess whether the benefit generated is more than 4 units case or not.
Maximum Benefit Generated (For 5 Units) = ($16 - $9) + ($16 - $11) + ($16 - $13) + ($16 - $15) + ($16 - $17) = $7 + $5 + $3 + $1 - $1 = $15 for 4 Units
As the maximum benefit generated in the case of 4 units is more because of using marginal revenue = Marginal Cost relation, hence the optimal quantity is 4 units.
