Answer:
b. $18.15
Explanation:
Toatal money spent on product A is:
Activity 1: 700/1000*18000 = $12600
Activity 2: 500/600*24000 = $20000
Activity 3: 800/1200*60000 = $40000
Total money spent on product A = $12600 + $20000 + $40000
= $72600
Total units of product A formed = 4000
Cost per product = $72600/4000 = $18.15
Therefore, The cost per unit of Product A under activty-based costing is closest to $18.15.
Answer:
Exit the market.
Explanation:
Suppose there are X firms in a competitive market and they are all making normal profits. If the demand for their products decreases, some of the firms will start to sell less, which will result in lower profits or even losses. In the long run, those firms that experience lower sales resulting in lower profits or losses, will exit the market. Once these firms exit the market, the quantity supplied should decrease, which will result in a price increase.
<span>Annual gross income is the amount of money you make BEFORE taxes. Your adjusted gross income is how much money you make before taxes, MINUS anything you can deduct. You can deduct many things, like student loan interest payments and alimony. So, you would have an adjustment if you paid for student loans this year. If your gross income (not adjusted) is $20,000 and you paid $1000 on student loan interest, your adjusted gross income is $19000. The IRS will then see your income as only $19000 instead of $20,000 and will tax you on that lower amount.</span>
Answer:
Journal Entry
Date Account Titles and Explanation Debit Credit
Jan 1 Cash $511,875
Bond payable $450,000
Premium on bond payable $61,875
($450,000*13.75%)
(To record issue of bonds at premium)