The best cooling methods include all the following except

During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 80,000 mini refrigerators, of whi

tiny-mole [99]

Answer:

1. Absorption Costing Income Statement

For the month ended May 31, 2016

Sales $10,800,000

Cost of goods sold

Beginning inventory -

Cost of goods manufactured $9,600,000

Ending Inventory $960,000

Cost of goods sold $8,640,000

Gross margin $2,160,000

Selling and administrative expenses

$1,080,000 + $180,000 $1,260,000

Income from operation $900,000

2. Variable Costing Income Statement

For the month ended May 31, 2016

Sales $10,800,000

Variable cost of goods sold

Beginning Inventory -

Variable cost of goods manufactured $9,280,000

Ending Inventory $928,000

Variable cost of goods sold $8,352,000

Manufacturing margin $2,448,000

Variable selling and administrative $1,080,000

expenses

Contribution margin $1,368,000

Fixed Cost:

Fixed manufacturing cost $320,000

Fixed selling and administrative $180,000

expenses

Total fixed cost $500,000

Income from operation $868,000

3. The reason for difference of amount for income from operation is $32,000 ($900,000 - $868,000). It is due to fixed manufacturing cost which is included for ending inventory under absorption costing (320,000 / 80,000 * 8,000). Hence, income under absorption costing is higher by $32,000 as compared to income under variable costing.

8 0

3 years ago

Carney Construction purchased a truck for $55,000 on January 1, 2015. The truck had an estimated useful life of 5 years and an e

ddd [48]

Answer:

The amount of depreciation would be recorded in 2016 was $12,000

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20% of the Depreciable cost.

Depreciable cost = Total cost of the equipment - Residual value = $55,000 - $5,000 = $50,000

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

Depreciation expense for 2015 = 40% x $50,000 = $20,000

At the beginning 2016, the Depreciable cost's book value is $50,000-$20,000 = $30,000

Depreciation expense for 2016 = 40% x $30,000 = $12,000

7 0

3 years ago

You hold a portfolio consisting of a $5,000 investment in each of 20 different stocks. The portfolio beta is equal to 1.12. You

bija089 [108]

Answer:

The new beta of the portfolio 1.17

Explanation:

Portfolio beta is sum of weighted beta of all stocks consisting of it.

Portfolio beta = 1.12

Weight of each portfolio = 5,000

All weight or Amount = 5,000 * 20 = 100,000

Weight of one stock = 5,000 / 100,000 = 0.05

Foregone beta or beta of sold stock = 1

Acquired beta or beta of purchased stock = 2

Weight of both are same = 0.05

New beta = Portfolio beta - (foregone beta * weight) + (Acquired beta * weight)

New beta = 1.12 - (1 * 0.05) + (2 * 0.05)

New beta = 1.12 - 0.05 + 0.1

New beta = 1.17

So New portfolio beta is 1.17

6 0

3 years ago

The following items were included in Castle City's General Fund expenditures for the year ended June. Personal computer for the

ad-work [718]

Answer:

$0

Explanation:

Capital assets are useful items that a business intends to keep beyond the current financial year. They are assets held for personal or investment purposes. Capital assets exclude items meant for sale in the current financial period.

Capital assets are used in the business operations to generate more revenues for the company. They are assets with a use-life that is greater than one year. Castle City General purchased a computer to be used by the city's treasurer. Castle City General will not use this item; hence it will not help in generating any revenues. The Furniture is for the mayor's office, and not the Castle City operations. These two purchases will not be included in Castle City books as capital expenditures.

8 0

3 years ago

Describe how money that you save in the bank can be channeled to an investor.

ankoles [38]

If a monthly investment is being done then you can set up a once month automatic payment. Write a check in the name of investment or you can also make an electronic transfer to the establishment you are investing in.

3 0

2 years ago

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