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2 years ago

When a company prepares financial statements using standard costing, which items are reported at standard cost

Business

1 answer:

Dmitrij [34]2 years ago

7 0

Answer: Inventories and cost of goods sold.

Explanation:

Standard costing is used in accounting and it simply has to do with the substitution of the cost that's expected for a product with an actual cost when preparing financial statements.

The difference that's then between the actual costs and expected costs are then recorded as variance. It should also be noted that when a company prepares financial statements using standard costing, the items that are reported at standard cost will be Inventories and the cost of goods sold.

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Marginal cost is ____________. a. The cost of producing an additional unit of output b. The total cost of production c. The reve

faltersainse [42]

Answer:

a. The cost of producing additional unit of output

Explanation:

Marginal cost refers to the extra cost incurred to produce additional unit of output or service.

Often times production or manufacturing companies tends to produce more units of outputs maybe to meet recurrent demand. The cost expended in the production of such extra units of output is called marginal cost. It is computed as change in the cost of producing additional goods divided by change in the number of goods produced.

8 0

3 years ago

Motorcycle Manufacturers, Inc. projected sales of 58,900 machines for the year. The estimated January 1 inventory is 6,090 units

julia-pushkina [17]

Answer:

60,120 units

Explanation:

The computation of the production units is shown below:

Production units = Projected sales units + ending inventory units - beginning inventory units

= 58,900 machines + 7,310 units - 6,090 units

= 60,120 units

We simply added the ending inventory units and deduct the beginning inventory units to the projected sales units so that the correct amount could come

5 0

3 years ago

Quiz during the class. Calculate the WACC which represents the "hurdle rate" for a typical project with average risk using midpo

aleksklad [387]

Answer:

a.Year Cashflow [email protected]% PV [email protected]% PV

$ $ $

0 (1,000) 1 (1,000) 1 (1,000)

1-15 72 11.1184 800 7.6061 548

15 1,000 0.5553 555.3 0.2394 239

NPV 355.3 NPV 213

Kd = LR + NPV1/NPV1 + NPV2 x (HR – LR)

Kd = 4 + 355.3/355.3 + 218 x (10 – 4)

Kd = 4 + 355.3/573.3 x 6

Kd = 7.72%

b. Kp = D/Po

Kp = $100/$1,111

Kp = 0.09 = 9%

c. Ke = D1/Po (1 – FC) + g

Ke = $4.3995/$50(1-0.15) + 0.05

Ke = $4.3995/$42.50 + 0.05

Ke = 0.1535 = 15.35%

WACC = Wdrd(1 – T) + Wprp + Were

WACC = 0.3(7.72)(1-0.4) + 0.1(9) + 0.6(15.35)

WACC = 1.39 + 0.9 + 9.15

WACC = 11.44%

Explanation:

In this case, we need to calculate cost of debt, cost of preference shares and cost of equity. Cost of debt is calculated based on internal rate of return. Cost of preferred stock is the ratio of dividend paid to the market price. Cost of equity is a function of D1 divided by current market price after floatation cost plus growth rate. WACC is equal to cost of each source multiplied by respective weights.

3 0

3 years ago

A company purchased a machine for $190,000. The machine has an estimated useful life of 8 years and a salvage value of $10,000.

Fittoniya [83]

Answer:

$108,400

Explanation:

The computation of the net book value of the machine at the end of the second year is shown below:

But before that the accumulated depreciation would be determined

For first year, the depreciation expense is

= ($190,000 - $10,000) × 15,000 ÷ 75,000

= $36,000

For the second year, the depreciation expense is

= ($190,000 - $10,000) × 19,000 ÷ 75,000

= $45,600

Now the net book value is

= $190,000 - $36,000 - $45,600

= $108,400

5 0

2 years ago

You write a short story, but want to make sure your work is protected before you post it online. What should you do to help prot

kifflom [539]

Put ur name on it and they will know its urs

6 0

3 years ago