Answer:
It is an example of the exculpatory clause
Explanation:
Exculpatory clause is the clause in the provision of contract which relieves or states that the one party of liability if the damages are incurred during the execution or the performance of the contract. And the party who issued this clause is seeking to be relieved of that potential liability.
In this case, SuperBumpers Cars releases a clause stating that they are releases from all the liability in the event of an injury during the car ride.
Answer:
b. $325,000
Explanation:
The current assets are the assets that are likely to be converted to cash within 12 months. These include cash, inventory, receivables, prepaid expenses etc.
Given;
Inventory = $84,000,
Long-term Debt = $125.000;
Common Stock $60,000;
Accounts Payable $44,000;
Cash $132,000,
Buildings and Equipment $390,000:
Short-term Debt $48.000:
Accounts Receivable $109,000,
Retained Earnings $204,000 Notes Payable $54.000:
Accumulated Depreciation $180.000
Total current asset = $84,000 + $132,000 + $109,000
= $325,000
Answer:
2,700 units
Explanation:
Given that,
Packaging Department started the month = 400 units in process that were 70% complete
Received units from Cutting Department = 2,500 units
Units in process at the end of the period that are 40% complete = 200
Units completed and transferred:
= Beginning work in process inventory + Units received - Ending work in process inventory
= 400 units + 2,500 units - 200 units
= 2,700 units
Answer:
1,200 hours
Explanation:
Solving mathematically this will be :
<em>y = ax^b</em>
where,
y is the cumulative average time required to produce x units
a is the time required to produce the first unit of output
x is the number of units of output under consideration
b is the log of the Learning Curve % divided by Log 2
The firm use 150 hours to work on the product during the second month
Amount of time used in the first month will be calculated as :
y = 400(8)^(-0.322)
= 204.8 hours (average)
Total for 8 units = 204.8 hours × 8 units
= 1,638.40 hours
Amount of time used for the total months to manufacture 18 units :
y = 400(18)^(-0.322)
= 157.74 hours (average)
Total for 18 units = 157.74 hours × 18 units
= 2,839.32 hours
Therefore,
Hours to be used in the second month = Time on 18 units - Time on 8 units
= 2,839.32 hours - 1,638.40 hours
= 1,200 hours
So, the firm use 1,200 hours in total for the 10 units. Which gives an average of 120 hours per unit