Answer:
Budgeted direct labor cost= $10,150
Explanation:
Giving the following information:
Production:
March= 1,400 units
April= 1,500 units
Each nightstand requires 0.25 direct labor hours in its production. Direct labor rate of $ 14.00 per direct labor hour.
To calculate the production budget cost for direct labor, we need to use the following formula:
Direct labor cost= total direct labor hours*direct labor rate
<u>March:</u>
Direct labor hours= 0.25*1,400= 350 hours
<u>April:</u>
Direct labor hours= 0.25*1,500= 375 hours
Budgeted direct labor cost= (350 + 375)*14= $10,150
Answer:
A court will most likely;
1. Allows the parties to rescind the contract.
Explanation:
The contract includes all the costs of insuring and shipping the painting from France to New York.
Since, the agent that made the shipping estimate makes a mistake when adding up the costs and, as a result, the shipping cost listed in the contract is $1,000 less than the actual shipping costs. A court will most likely allow the parties to rescind the contract because a part of the contract agreement has been breached in error.
Answer:
Deferred Tax Asset:
The amount of taxes that is paid or carried forward but not yet identified in the income statement is referred as deferred tax asset
Journal Entries:
Debit: Income Tax Expense (balancing amount) = 812,500
Debit: Deferred Tax Asset = 87,500
Credit: Income Tax Payable = 900,000
- Income tax expense reduces the stockholders. equity. Hence, debit income tax expense with $812,500
.
- Deferred tax asset is an asset and is increased by $87,500. Therefore, debit deferred tax asset account with $87,500.
- Income tax payable increases the liability by $900,000. Therefore, credit Income tax payable account with $900.000.
Working note:
Determine the amount of deferred tax asset.
Deferred tax asset = Rent collected in 2021 × Enacted tax rate
Deferred tax asset = $350,000 × 25%
Deferred tax asset = $87,500
Determine the amount of income tax expense.
Income tax expense = Income tax payable — Deferred tax asset
Income tax expense = $900,000 = $87,500
Income tax expense = $812,500
Answer:
The days' sales in inventory for 2019 is 85.88 days
Explanation:
For computing the days' sales in inventory first we have to compute the inventory turnover ratio.
Inventory turnover ratio = Cost of goods sold ÷ average inventory
where,
Average inventory = (Opening balance of inventory + ending balance of inventory) ÷ 2
= ($25,000+ $ 55,000 ) ÷ 2
= $40,000
And, the cost of good sold is $170,000
Now put these values to the above formula
So, the answer would be equal to
= $170,000 ÷ $40,000
= 4.25 times
Now days sales inventory = Total number of days in a year ÷ inventory turnover ratio
= 365 days ÷ 4.25 times
= 85.88 days
Answer:
D. store of value is the correct answer.
Explanation:
