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Nataly [62]
3 years ago
6

A farmer sells a bushel of corn to the supermarket for $12. The supermarket then sells the corn to customers for $25. What is th

e total contribution to GDP?
Business
1 answer:
allsm [11]3 years ago
6 0

Answer:

$ 25

Explanation:

As per the description, the exact amount that is being contributed from the corn bushel to the Gross Domestic Product would be $ 25. The price at which the farmer sold it to the supermarket would not be included in the GDP because it would be considered as an intermediary good because the good purchased for the resale purpose is not included in GDP as it leads to double-counting. Thus, <u>only the price of the final good i.e. $ 25 would be included in GDP as it will now be used for final consumption by the customers</u>.

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Answer:

Equivalent Units of Production :

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(2) Conversion Costs = 284400

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Explanation:

The Concept of Equivalent Units entails identifying number of completed units in terms of their completion % in the input component or process.

<em>Step 1 : Determine Units Completed and Transferred to Finished Goods</em>

<em>Units in Process = Units Output</em>

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Less Closing Work In Process            34000  

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<em>Step 1 : Determine Equivalent Units for each input component</em>

Materials:

Completed and Transferred 100% = 264000×100%= 264000

Closing Work In process 100% = 34000×100%= 34000

Total = 298000

Conversion Costs:

Completed and Transferred 100% = 264000×100%=264000

Closing Work In process 60%=34000×60%=20400

Total =284400

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