Answer:
We will lay off workers from Facility A
Explanation:
To determine the workers lay off we need to calculate the variable cost per claim using the following formula
Variable cost per claim = Total Variable cost / Numbers of claims
Facility A
Variable cost per claim = $180,000 / 9,000 claims = $20 per claim
Facility B
Variable cost per claim = $143,000 / 11,000 claims = $13 per claim
As we see that the facility B has the lower variable cost per claim so, we should lay off the workers from facility A because it has a higher variable cost in order to reduce the overall cost.
Answer:
COGS= $58,000
Explanation:
Giving the following information:
The year began with an inventory of $20,000, Purchases for the year were $45,000, and the Ending Inventory was $7,000.
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 20,000 + 45,000 - 7,000
COGS= $58,000
<span>Define what is meant by the phrase "planning materiality threshold".
Planning materiality threshold is defined as the complete materiality level for the financial statements in internal control. The auditor will establish a materiality level that is best based on the situation regarding the nature, extent and timing of the audit procedures. </span>
Answer:
$189,500
Explanation:
Calculation to determine what amount should Barley report as allowance for uncollectible accounts
Using this formula
Allowance for uncollectible Accounts=Barley's gross accounts receivable percentage*Barley's gross accounts receivable
Let plug in the formula
Allowance for uncollectible Accounts= 1%*$18,950,000
Allowance for uncollectible Accounts= $189,500
Therefore The amount that Barley should report as allowance for uncollectible accounts will be $189,500