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2 years ago

Select the correct answer from the drop-down menu

Business

1 answer:

iragen [17]2 years ago

8 0

Answer:

What to produce?

Explanation:

A society has to make choices in order to meet the diverse needs of its members. The resources available in all economies are insufficient to meet all needs. Because of this scarcity, a society has to make informed decisions on what to produce at any given.

Societies make choices on what to produce with the available resource. In every decision, there is a sacrifice to be made.

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Plush Corporation purchased 100 percent of Common Corporation’s common stock on January 1, 20X3, and paid $450,000. The fair val

Oxana [17]

Answer:

Please refer the detail answer in the memo below

Explanation:

Date: 24 January 20XX

Subject: Review of Impairment of Goodwill

From: External Auditors

To: Chief Accountant, Plush Corporation

Upon review of the investment made by your company in Common Corporation, we believe that there are possible indications of the impairment of the goodwill initially recognized in the books upon acquisition.

At the time of Acquisition:

Consideration = $450,000

Fair Value of Net Assets = $430,000

Goodwill = $450,000 - $430,000 = $20,000

The new guidance issued by FASB, requires only a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value.

However, if we follow the previous guidance of FASB, we have to test the impairment with the following three steps:

Step 1: We will compare the carrying amount of the net assets with the Fair value of Reporting Unit, and if the carrying amount exceeds the fair value, we will record the impairment.

Step 1: We will compute, implied value of goodwill by comparing the fair value of the reporting unit with the fair value of the identifiable net assets, if FV of net assets are higher, then there is no impairment, otherwise we will jump to Step 3.

Step 3: If the calculated implied value of the goodwill is lower than the actual goodwill at acquisition, than the difference is the impairment loss, however in case the implied value of the goodwill is higher than the actual goodwill at acquisition, no impairment shall be recorded.

Apparently, since the fair value of Common had increased to $485,000, there is no need to recognize the impairment loss on goodwill; however we believe that the estimated fair value of Common is less than the $430,000 and therefore impairment should be recorded.

7 0

2 years ago

Performance goals are used to

lidiya [134]

Help you know what is expected of you in your position.
i guess this is the right answer

8 0

2 years ago

Read 2 more answers

Rexford Corporation produces three products, with costs and selling prices as follows: Product A Product B Product C Machine hou

Alex787 [66]

Answer:

$9,400

Explanation:

For computing the maximum contribution margin we need to do following calculations

Contribution Margin

Product A = ($12 ÷3) = 4

Product B = ($5 ÷ 1) = 5

Product C = ($9 ÷ 2) = 4.50

So, the ranking order would be product B > product C > product A

Now

Total machine hours available = 2,100 hours

And,

Time for making 500 units of B

= 500 × 1

= 500 hours

For making 500 units of C, the time taken is

= 500 × 2

= 1000 hours

So the remaining hours left is

= 2,100 hours - 1,000 hours - 500 hours

= 600 hours

So, for A the manufactured is

= 600 ÷ 3

= 200

And, finally the Maximum contribution margin is

= (200 × $12) + (500 × 5) + (500 × 9)

= $2,400 + $2,500 + $4,500

= $9,400

7 0

3 years ago

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses

Flauer [41]

Answer:

Required 1

Part a

Total Product cost = Variable manufacturing costs + Fixed manufacturing costs

where,

Variable manufacturing costs = ($84,000 + $42,500 + $21,000) ÷ 1,000 units = $147.50

Fixed manufacturing costs = $32,500 ÷ 1,000 units = $32.50

therefore,

Total Product cost = $147.50 + $32.50 = $180.00

Part b

Total period cost = variable non- manufacturing costs + fixed non-manufacturing costs

where,

variable non- manufacturing costs = $15,000 + $5,500 = $20,500

fixed non-manufacturing costs = $24,000 + $28,000 = $52,000

therefore,

Total period cost = $20,500 + $52,000 = $72,500

Required 2

Part a

total direct manufacturing cost = Direct Materials + Direct Labor + Direct (Variable) Manufacturing Overheads

therefore,

total direct manufacturing cost = $84,000 + $42,500 + $21,000 = $147,500

Part b

total indirect manufacturing cost = fixed manufacturing costs

therefore

total indirect manufacturing cost = $32,500

Required 3

Part a

total manufacturing cost = variable manufacturing cost + fixed manufacturing costs

therefore,

total manufacturing cost = $84,000 + $42,500 + $21,000 + $32,500 = $180,000

Part b

total non-manufacturing cost = variable non-manufacturing cost + fixed non-manufacturing cost

therefore,

total non-manufacturing cost = $20,500 + $52,000 = $72,500

Part c

total conversion cost = direct labor cost + manufacturing overheads

therefore,

total conversion cost = $42,500 + $21,000 + $32,500 = $96,000

prime cost = direct material + direct labor

therefore,

prime cost = $84,000 + $42,500 = $126,500

Required 4

Part a

total variable manufacturing cost = direct materials + direct labor + variable manufacturing costs

therefore,

total variable manufacturing cost = $84,000 + $42,500 + $21,000 = $147,500

Part b

total fixed cost = fixed manufacturing costs + fixed non-manufacturing costs

therefore,

total fixed cost = $32,500 + $52,000 = $84,500

Part c

variable cost per unit produced and sold = variable manufacturing cost + variable non-manufacturing

therefore,

variable cost per unit produced and sold = $147.50 + ($20,500 ÷ 1,000) = $168.00

Required 5

incremental manufacturing costs = variable manufacturing costs

therefore,

incremental manufacturing cost = ($84,000 + $42,500 + $21,000) ÷ 1,000 units = $147.50

8 0

2 years ago

Christie makes changes to her budget at the end of every month. What is her reason for doing this in terms of smart financial pl

mr_godi [17]

A great reason to revise her monthly budget is that Christine can adjust her planning to meet her specific goals. While sticking to long term goals may be a good idea for some, if that is not possible adjusting your budget is a good way to keep track of income and expenses and to make sure that you do not spend more than you should.

4 0

3 years ago

Read 2 more answers