Answer:
The cost of goods sold is $4,800
Explanation:
Given,
Beginning Inventory = $1,000
Ending Inventory = $1,200
Cost of goods manufactured = $5,000
Cost of goods sold = Beginning Inventory + Cost of goods manufactured - Ending Inventory.
Cost of goods sold = $1,000 + $5,000 - $1,200
Cost of goods sold = $4,800
Answer:
Flip Flop Inc can still treat Interests as Interest expense and treat penalties as Fees, dues, and subscriptions.
Explanation:
Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any borrowings – bonds, loans, convertible debt or lines of credit. It is essentially calculated as the interest rate times the outstanding principal amount of the debt
Penalties can be categorized under deductible expenses called Fees, dues, and subscriptions.
Levies and other fees paid to an accountant or bank; memberships fees to professional organizations, subscriptions to industry publications and funds paid as penalties are all deductible.
Answer:
Depreciation of the manufacturing plant.
Explanation:
Depreciation is a fixed cost. The depreciation cost of an asset is an annual expense. Usually, it is the same amount throughout the useful life of the asset.
In considering the particular order, the depreciation cost of the plant should not be a factor. Whether the order is accepted or not, the depreciation cost of the plant will still be the same.
Answer:
A. No, because of NAFTA, you would expect the export of goods to Canada and Mexico to be substantial.
Explanation:
Even though exists a lot of debate surrounding the benefits of NAFTA to the US, trade agreements tend to increase more than proportionally the commercial exchange between parties. In this case, Canada and Mexico are both parts of NAFTA, so being the most important commercial partners of Ohio should not be a surprise.
Answer:
$9000
Explanation:
Depreciation is a systematic allocation of the cost of an asset over its useful life. One method of depreciation is the straight line method where the value of an asset is uniformly and gradually written off over its useful life
<u>Working</u>
Cost of asset - $90000
Useful life - 9years
Salvage value - $9000
Fiscal year - (Jan 1- Dec 31)
Depreciable amount- (90000-9000)= $81000
Annual depreciation (straight line ) 81000/9 = $9000
December 31 2017 depreciation expense = $9000*1/2 = 4500
Decemebr 31 2018 depreciation expense = $9000
