Answer:
A). Ending Inventory = Beginning Inventory + Units Produced-Sales
Example
For March = 9375-4250 = 5125
For April = 5125+9375-8250 = 6250
B). ) Inventory cost = $12*Ending Inventory
Financing Cost = 0.01*Inventory Cost
For March = 12* 5125 = 61500 = Inventory Cost
Financing Cost = 0.01*61500 = $615
Adding for all months
Total Financing cost = $1620
Answer:
Follows are the solution to the given points:
Explanation:
In point a:
This business of plastic containers is increasing its Lunchbox Product Signature price around $3.00 and $4.00. The volumes produced consequently declined around 20,000 to 15,000.
The price elasticity also becomes unitary
In point b:
U.S. economic theory states that the elasticity of fuel demand is 0.5 because prices would be less than 1 and so are non-elastic.
In point c:
The capital Metro agrees and add $2.00 to $2.21 also for bus fares. Consequently, with an average of 70,000 drivers a days to both a daily average 61,000 drivers, its passenger numbers who take the bus in Austin falls.
The value being higher than 1 is elastic.
Answer:
The entry will be,
Cash 33200 Dr
Accumulated depreciation 16440 Dr
Asset 47700 Cr
Gain on Disposal 1940 Cr
The company will record a gain on disposal of 1940.
Explanation:
The straight line depreciation method allocates a constant depreciation expense through out the useful life of the asset based on the depreciable cost, which is cost less residual value.
<u>Straight line method</u>
Depreciation expense per year = (Cost - Residual value) / estimated useful life
Depreciation expense per year = (47700 - 6600) / 5 = $8220 per year
Accumulated depreciation fr two years = 8220 * 2 = 16440
Carrying value of the asset at the end of two years = 47700 - 16440 = 31260
The asset is sold for $33200. So, there is a gain on sale of 33200 - 31260 = $1940 as the cash received from selling the asset is more than its carrying value.