When the economy goes into a recession and firms require less labor, managers tend to?

Using the FIFO method, the cost of inventory at the end is $15,500, and the market price is $14,500. Using the lower-of-cost-or-

Sindrei [870]

Answer:

Inventory Cost = $14,500

Explanation:

Using the lower of cost or market method implies firstly valuing the inventory at the purchased cost (historical cost). But as the value of a good can change and if the price at which the inventory can be sold falls below its net realizable value the loss (and new value) must be recorded. It is a method for adjusting asset values in subsequent reporting periods.

5 0

3 years ago

Calculating and using Dual Charging Rates

11Alexandr11 [23.1K]

Answer:

1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. $ per maintenance hour Calculate the allocated fixed cost for each using department based on its budgeted peak month usage in maintenance hours.

variable rate = $1.30 per maintenance hour

Department Peak Number Allocated

of hours Fixed cost

Assembly (210/2,100) x $65,400 $6,540

Fabrication (1,050/2,100) x $65,400 $32,700

Packaging (840/2,100) x $65,400 $26,160

Total 2,100/2,100 $65,400

2. Use the two rates to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year.

Department Fixed costs Variable cost Total

Assembly $6,540 3,500 x $1.30 = $4,550 $11,090

Fabricating $32,700 7,000 x $1.30 = $9,100 $41,800

Packaging $26,160 10,000 x $1.30 = $13,000 $39,160

Total $65,400 $26,650 $92,050

3. What if the Assembly Department used 3,550 maintenance hours in the year? How much would have been charged out to the three departments?

Department Fixed costs Variable cost Total

Assembly $6,540 3,550 x $1.30 = $4,615 $11,155

Fabricating $32,700 7,000 x $1.30 = $9,100 $41,800

Packaging $26,160 10,000 x $1.30 = $13,000 $39,160

Total $65,400 $26,715 $92,115

6 0

3 years ago

The Three Amigos Restaurant just paid an annual dividend of $4.20 per share and is expected to pay annual dividends of $4.40 and

shusha [124]

Answer:

$33.93

Explanation:

First, find the present value of each year's dividend at 15% required rate of return;

(PV of D1 ) = 4.40 / (1.15) = 3.8261

(PV of D2 ) = 4.50 / (1.15²) = 3.4026

Next, find terminal Cashflow;

D3 = D2 (1+g)

D3 = 4.50 (1.02) = 4.59

(PV of D4 onwards ) = $\frac{\frac{4.59}{0.15-0.02} }{(1.15)^{2} } \\ \\ = \frac{35.3077}{1.3225} \\ \\ = 26.6977$

Next sum up the PVs to find price;

=3.8261 + 3.4026 + 26.6977

= 33.926

Therefore, this stock is worth $33.93 today

7 0

3 years ago

Cave Hardware's forecasted sales for April, May, June, and July are $150,000, $250,000, $100,000, and $290,000, respectively. Sa

dmitriy555 [2]

Answer:

$160,000

Explanation:

The computation of budgeted cash payments in June is shown below:-

For computing the budgeted cash payments in June first we need to find out the may credit sales and June cash sales.

May credit Sales = May = $250,000 × 40% × 100%

= $100,000

and

June cash sales = $100,000 × 60%

= $60,000

Cash collection budgeted June = May credit Sales + June cash sales

= $100,000 + $60,000

= $160,000

5 0

3 years ago

Universal Containers email policy requires that all email traffic remain within its firewall. Currently, the company has 200 sup

allsm [11]

Answer:

Email to case

Explanation:

Email to case is an innovative platform that allows a company keep all emails within their network firewall.

It allows receipt of emails larger than 25mb from customers.

When customer's emails are received, they are turned into cases that can be tracked for easy resolution.

This will be a good solution for Universal Containers as it solves the problem of having emails within its firewall, and provides a way for the 200 support agents resolve customer challenges through cases generated.

8 0

3 years ago