Answer:
350,000
And if done per unit, $3.50
Explanation:
Both sales and variable cost are dependent on the number of units sold.
The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.
The target cost of the product is the difference between the selling price and the anticipated profit.
Target cost per unit
= $6.00 - $2.50
= $3.50
Total Target cost = $3.50 * 100,000
= $350,000
Answer:
Dr. Cr.
Work in progess 139,000
Salaries and wages payable account 139,000
Explanation:
Direct Labor are charges to work in progress account and a payble is created as a result.
Total Labor cost = $212,000
Indirect cost = $73,000
Direct labor cost = $212,000 - 73,000
Direct labor cost = $139,000
Answer: In this particular case we can reason that this scenario represents <em><u>monopolistic-ally competitive market.</u></em>
Both coffee house are offering a similar product and commodity, with only little differentiation in their design.
i.e. The Starfire Coffee chain provided consumer with peppermint coffee and the experience of sitting in front of a roaring fire, chatting with friends.
whereas Reindeer provided consumer with a mug of hot cocoa and a similar community experience.
Answer:
$440,140
Explanation:
According to the accounting principle, the inventory should be valued at lower of cost or market value. The calculation is shown below:
Cost Market Lower value
Small $68,650 $56,490 $56,490
Medium $283,710 $237,140 $237,140
Large $146,510 $177,300 $146,510
Total $440,140
Hence, the ending inventory would be valued at $440,140
Answer:
First In, First Out (FIFO).
Explanation:
FIFO is an acronym for "First In, First Out" and it assumes oldest unit of inventory is sold first, meaning goods that were first added to inventory are the first goods removed from inventory for sale and are recorded as sold first.
FIFO can be defined as an accounting methods used in managing costs related to inventory, stock repurchases at different times and financial activities associated with monetary costs a company had tied up within inventory of feedstocks, raw materials, produced goods, and equipment parts.
Simply stated, FIFO is an accounting methods used for the valuation of the cost of goods sold and ending inventory of a company.
In a period of rising prices, the inventory method which tends to give the highest cost of goods sold value is First In, First Out (FIFO). This is because the more recent costs represent the higher (rising) net income and a higher (rising) inventory valuation costs.
