With their flooring business now eight months old, Jesse and Ed readily admit that raising capital has been both a pro and a con in their partnership.
I think this is the correct answer because they will raise their capital and make sure that they will gain from it.
Answer:
a. $112,000
b. $7,500
Explanation:
(a) transferred out
Units transferred out are 100% complete for both materials and conversion costs, thus multiply the Total Cost per Equivalent units with the number of units transferred.
Cost of units transferred out = $8 × 14,000 units
= $112,000
(b) in ending work in process
Units of ending work in process are 100% complete in terms of materials ( since materials are entered at the beginning of the process) whilst 25% complete in terms on conversion cost (applied uniformly during production).
Cost of ending work in process
Materials ($3 × 2,000 units) = $6,000
Conversion ($3 × (2,000 units × 25%)) = $1,500
Total Cost = $7,500
The statement “Expenses, such as depreciation on buildings
are also known as variable expenses.”, is false, due to the fact that depreciation
is a fixed cost since throughout its useful life as an asset, it reoccurs in
the same amount per period, and thus, depreciation cannot be considered a
variable cost. Nevertheless, as with all things, there is an exception. The
depreciation will be sustained in a pattern that is more consistent with a
variable expense, only if a business recruits a usage-based depreciation methodology.
To add, the corporate expense that alters with the company’s
production output is called the variable cost.
Answer:
$184.27
Explanation:
initial cash balance $34
initial short-term loan balance $180
net cash inflow Q1 = $36
repaid $50 to short term loan including interests ($3.60)
initial cash balance $20
short-term loan balance = $133.60
net cash outflow Q2 = $48
short term loan was taken to cover this deficit plus $2.67 in interests ($133.60 x 2%)
short term loan balance at the end of Q2 = $133.60 + $48 + $2.67 = $184.27
