The private market will produce more than the economically efficient output level. Also when there is a negative externality then the cost to producers will be less than the cost to society. Remember that a negative externality is a cost that is suffered by a third party as a result of an economic transaction. Also have in mins that externalities lead to market failure<span> because the price equilibrium </span>does<span> not reflect the true costs and benefits of a product.</span>
Answer:
Following are the journal entries recorded for the payroll of current time period;
Debt: Salary Expense = $50,000
Credit: Tax Payable by Medicare = $750
Credit: Deduction Payable For Employee Saving = $2,550
Credit: Income Tax payable for Federal Employees = $9,000
Credit: Tax payable for Social Security = $3,000
Credit: Salaries payable to Employees = $34,700
The price - earnings ratio for the company, given the earnings per share and the market price per share, is 11 . 6
<h3>How to find the price - earnings ratio?</h3>
The price to earnings ratio shows the comparison between the earnings made per share and the price of each share.
The formula for the price to earnings ratio is :
= Earnings per share / Market price per share
Earnings per share = $ 8. 70
Market price per share = $ 100. 92
The price to earnings ratio is:
= 100. 92 / 8. 70
= 11 . 6
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Answer:
$118,209
Explanation:
Weighted average costing adds the value of beginning inventory in the period cost to calculate the average cost per unit.
It is assumed that unit in work in process at the end of the period is incomplete in every aspect.
According to this method the equivalent units formula is as follow
Equivalent Units = Unit completed and transferred to Finished goods + Units in Work in Process x Completion percentage
Equivalent Units = 5,000 + 600 x 50% = 5,300 units
Total Cost = ( 5,300 x $10 ) + (38,280 + 30,620) x 5,300/5600 = $53,000 + $65,209 = $118,209
Note:
There is some inconsistency between the material cost and the total units. Material cost is calculated using 1,600 units and total numbers of units are 5,600. I took 5,600 units and calculated the costs.
