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mina [271]
2 years ago
13

Novak Corp. bought equipment on January 1, 2022. The equipment cost $390000 and had an expected salvage value of $35000. The lif

e of the equipment was estimated to be 5 years. The company uses the straight-line method of depreciation. The book value of the equipment at the beginning of the third year would be
Business
1 answer:
nirvana33 [79]2 years ago
7 0

Answer:

$177,000

Explanation:

In order to find the book value of the equipment we need to find the amount of depreciation per year. To do this we need to subtract the salvage value from the initial cost and then simply divide by 5 which is the life span of the equipment...

(390,000 - 35,000) / 5 = x

355,000 / 5 = x

71,000 = x

Now we see that the equipment will depreciate by $71,000 per year. In three years the depreciation would be

71,000 * 3 = 213,000

Now we simply subtract this value from the initial cost to get the book value in the third year

390,000 - 213,000 = 177,000

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During its first year of operations, the McCormick Company incurred the following manufacturing costs:_______. Direct materials,
notka56 [123]

Answer:

Net income= $432,000

Explanation:

Giving the following information:

Fixed overhead, $224,000.

The company produced 28,000 units, and sold 19,000 units, leaving 9,000 units in inventory at year-end.

Income calculated under variable costing is determined to be $360,000.

The difference between absorption costing and variable costing method is that the first one includes the fixed manufacturing cost in the unitary production cost. <u>Some of the fixed overhead is allocated into ending inventory increasing the net income for the period.</u>

Unitary fixed overhead= 224,000/28,000= $8

Fixed overhead in ending inventory= 8*9,000= $72,000

Net income= 360,000 + 72,000= $432,000

6 0
3 years ago
PLS HELP!!! What is the meaning of Customer Relationship Management (CRM)?
Alla [95]

Answer:

CRM means collecting information about the customer for the purpose of improving their future experience.

Explanation:

CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance their satisfaction.

CRM means collecting information about the customer for the purpose of improving their future experience.

3 0
2 years ago
Read 2 more answers
Variable costs of production $50 per unit Variable costs of sales and administration $25 per unit Fixed costs of production $100
malfutka [58]

Answer:

Number of units to be produced and sold= 7,000 units

Explanation:

Giving the following information:

Variable costs of production $50 per unit

Variable costs of sales and administration $25 per unit

Fixed costs of production $100,000 per year

Fixed costs of sales and administration $50,000 per year

Selling price= $100 per unit

Desired profit= $25,000

To calculate the number of units to be produced and sold, we need to use the break-even point formula:

Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit

Fixed costs= (100,000 + 50,000)= 150,000

Unitary variable cost= (50 + 25)= $75

Break-even point in units= (150,000 + 25,000) / (100 - 75)

Break-even point in units= 7,000 units

7 0
2 years ago
Mention three reasons for depreciation​
miskamm [114]
<h2><em>Answer:</em></h2><h2><em>The causes of depreciation are: </em></h2><h2><em>Wear and tear:Any asset will gradually break down over a certain usage period, as parts wear out and need to be replaced. ... </em></h2><h2><em>Perishability: Some assets have an extremely short life span. ... </em></h2><h2><em>Usage rights</em></h2><h2><em>Natural resource usage </em></h2><h2><em>Inefficiency/obsolescence</em></h2><h2><em>ECT</em></h2>

Explanation:

5 0
3 years ago
Last year, talent show tickets were sold for $11 each and 400 people attended. it has been determined that an increase of $1 in
tankabanditka [31]

Answer:

Explanation:

4800 - 300 ppl $16

or

4800 - 320 ppl $15

5 0
2 years ago
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