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Ludmilka [50]
3 years ago
14

Use the information below for Jensen Company to answer the question that follow. Direct materials used $345,000 Direct labor inc

urred 250,000 Factory overhead incurred 400,000 Operating expenses 175,000 Jensen Company's product costs are a.$825,000 b.$995,000 c.$920,000 d.$770,000
Business
2 answers:
AnnZ [28]3 years ago
8 0

Answer:

b.$995,000

Explanation:

Jensen Company

Direct materials used $345,000

Direct labor incurred 250,000

Factory overhead incurred 400,000

Product cost $995,000

Therefore Jensen Company's product costs is $995,000

Direct materials used $345,000 + Direct labor incurred 250,000 +Factory overhead incurred 400,000 =$995,000

kondaur [170]3 years ago
3 0

Answer:

Jensen Company's product costs are b.$995,000

Explanation:

Product Cost <em>includes</em> all Manufacturing Costs. Non-Manufacturing Costs are treated as <em>expenses</em> during the current period

<u>Calculation of Jensen Company's product costs</u>

Direct materials                       345,000

Direct labor incurred               250,000

Factory overhead incurred     400,000

Total                                          995,000

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Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $13.00
aleksandr82 [10.1K]

Answer:

Cost difference= $64,808 cost decrease

Explanation:

Giving the following information:

Purchasing price= $13

Make in-house:

Variable cost per unit= $11

Fixed cost per unit= $9

Production in units= 32,404

<u>To determine whether it is more convenient to make the part in-house or buy it, we need to take into account only the variable cost per unit. We leave out of the decision the fixed costs because they remain constant in both options.</u>

Buy= 32,404*13= $421,252

Make= 32,404*11= $356,444

Cost difference= $64,808 decrease

3 0
3 years ago
Goodfellow Corporation reported insurance expense of $477 for the current year. The beginning and ending balances in the prepaid
yan [13]

Answer:

The correct option is $457

Explanation:

The amount of cash paid in respect of insurance for the current period can arrived at using the below proforma or format:

Insurance  expense in the year                                   $477

less insurance prepaid in the previous year                 ($50)

add insurance prepaid this year                                     $30

Cash paid for insurance in the current year                $457

It is important to note that the question required actual cash paid in respect of insurance in the current year,full knowing that the beginning balances in prepayment was paid for last year implies that it should be deducted and the other way round for the closing insurance prepayment this year

7 0
3 years ago
Bramble Corp. purchased a machine for $65600 on July 1, 2020. The company intends to depreciate it over 8 years using the double
KonstantinChe [14]

Answer:

$16,400

Explanation:

Depreciation for 2020 is calculated as;

= (Cost - Nill value) × 50% × 6/12[July to December)

Given that ;

Cost = $65,600

Depreciation = ($65,600 - 0) × 0.5 × 6/12

Depreciation = $16,400

Therefore, depreciation for 2020 is $16,400.

4 0
3 years ago
Refer to the following selected financial information from McCormik, LLC. Compute the company's current ratio for Year 2. Year 2
swat32

Answer: 3.39

Explanation: Current ratio can be defined as a liquidity ratio which is used by the accountants the evaluate the ability of the company to pay its short term obligations. It can be computed as follows :-

current\ ratio=\frac{curret\ assets}{current\ liabilities}

where,

current assets = $38,500 + $100,000 + $90,500 + $126,000 + $13,100 = $368,100

current liabilities = $108,400

now putting the values into equation we get :-

current\ ratio=\frac{368,100}{108,400}

                             = 3.39

8 0
3 years ago
Economists measure the personal satisfaction someone gets from consuming goods and services with the concept of
KiRa [710]
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6 0
3 years ago
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