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3 years ago

Economies experience sacracity because:

1 answer:

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Scarcity helps people make more informed choices about how to use the resources that are available. The concept of scarcity works in business in the following ways: Scarcity is essential to the study of economics. A fundamental aspect of scarcity is the mismatch between supply and demand.

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The following lots of a particular commodity were available for sale during the year:Beginning inventory 10 units at $60First pu

krok68 [10]

Answer:

$1,685

Explanation:

The computation of the average cost per unit is shown below:

= (Beginning inventory units × price per unit + purchase inventory units × price per unit + purchase inventory units × price per unit + purchase inventory units × price per unit ) ÷ (Beginning inventory units + purchase inventory units + purchase inventory units + purchase inventory units )

= (10 units × $60 + 25 units × $65 + 30 units × $68 + 15 units × $75) ÷ (10 units + 25 units + 30 units + 15 units)

= ($600 + $1,625 + $2,040 + $1,125 ) ÷ (80 units)

= ($5,390 units) ÷ (80 units)

= $67.375 per unit

Now the ending inventory equals to

= Ending inventory units × average cost per unit)

= 25 units × $67.375 per unit

= $1,685

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3 years ago

Suppose that the MC Software Corporation earns a profit of $10 per share. If the prevailing interest rate is 12 percent and the

dsp73

Answer:

Price Earning Ratio = Price/Earnings = we use the general formula.

$\frac{100}{10}$

$100/$10 = 10 times

Explanation:

Price Earning ratio is calculated using the current market price of share and earnings per share of the company. In the given question there is no relevance of interest rate as this is not the cost of equity.

Price Earning Ratio tells how much earnings are required to meet the cost of 1 share.

Another formula for P/E ratio = 1/Cost of Equity. Since 12% is not cost of equity this formula cannot be used.

Also earnings per share is given assumed it is after interest cost if any.

4 0

3 years ago

Sudoku Company issues 17,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $230

steposvetlana [31]

Answer:

Debit Land for $230,000

Debit Building for $372,000

Credit Common Stock (w.1) for $136,000

Credit Paid in capital in excess of per value (w.2) for $466,000

Explanation:

The journal entry will look as follows:

Account Name Dr ($) Cr ($)

Land 230,000

Building 372,000

Common Stock (w.1) 136,000

Paid in capital in excess of per value (w.2) 466,000

(To record issuance of stock in exchange for the land and building.)

Workings:

w.1: Common stock = Number of shares issued * Price per share = 17,000 * $8 = $136,000

w.2: Paid in capital in excess of per value = Value of land + Value of building - Common stock = $230,000 + $372,000 - $136,000 = $466,000

4 0

3 years ago

The production department of Priston Company has submitted the following forecast of units to be produced by quarter for the upc

Levart [38]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

1st Quarter - 2nd Quarter - 3rd Quarter - 4th Quarter

Units to be produced: 6,000 - 7,000 - 8,000 - 5,000

the beginning raw materials inventory= 3,600

Each unit requires three pounds of raw material that costs $2.50 per pound. Management desires to end each quarter with a raw materials inventory equal to 20% of the following quarter

I will assume that the requirements are the cost of direct material for each quarter.

The direct material budget is calculated by the following formula:

Direct material budget= direct material for production + ending inventory - beginning inventory

Q1:

Production= (6,000*3)*$2.5= $45,000

Ending inventory= [(7,000*3)*$2.5]*0.20= $10,500

Beginning inventory= (3,600*2.5)= (9,000)

Total= $46,500

Q2:

Production= (7,000*3)*$2.5= $52,500

Ending inventory= [(8,000*3)*$2.5]*0.20= $12,000

Beginning inventory= (10,500)

Total= $54,000

Q3:

Production= (8,000*3)*$2.5= $60,000

Ending inventory= [(5,000*3)*$2.5]*0.20= $7,500

Beginning inventory= (12,000)

Total= $55,500

8 0

3 years ago

Madison Company's perpetual inventory records indicate that $875,300 of merchandise should be on hand on October 31. The physica

Trava [24]

Answer:

Madison Company's Journal entry

Dec. 31

Dr Cost of Merchandise Sold 93,400

($875,300-$781,900)

Cr Merchandise Inventory 93,400

Explanation:

If the perpetual inventory records $875,300 of merchandise while the physical inventory indicates $781,900 which means we have to deduct $781,900 from $875,300 which made us to arrived at $93,400 as Debited Cost of Merchandise Sold and as Credited Merchandise Inventory .

4 0

3 years ago