Suggest Stragegies that business can use to remain profitable and sustainable

In the month of April, the Forming Department had 500 units in beginning work in process inventory that were 60% complete. These

Mamont248 [21]

Answer:

$2,700,000

Explanation:

since materials are added at the beginning of the process, we must first determine the number of units that started to be produced during April:

finished goods + ending inventory - beginning inventory = 10,000 + 2,000 - 500 = 11,500

the $1,380,000 must be divided by 11,500 units started = $1,380,000 / 11,500 = $120

total materials = [(11,500 - 2,000) x $120] + $60,000 (beginning inventory) = $1,140,000 + $60,000 = $1,200,000

conversion costs are added as the process is carried out so we must determine equivalent units:

beginning work in process: 500 x 60% = 300 equivalent units
10,000 units were completed during April
ending inventory: 2,000 x 25% = 500 equivalent goods

total equivalent units processed = 10,000 + 500 - 300 = 10,200

conversion cost per equivalent unit = $1,530,000 / 10,200 = $150

total conversion costs = [(10,200 - 500) x $150] + $45,000 (beginning inventory) = $1,455,000 + $45,000 = $1,500,000

total cost of finished goods inventory = $1,200,000 + $1,500,000 = $2,700,000

7 0

3 years ago

For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $978,000. Selected information f

olchik [2.2K]

Answer:

1. Income tax payable for 2021 = (Pretax accounting income - Interest income on municipal governmental bonds - Depreciation + (Warranty expense reported - Actual Warranty) ) * Income Tax rate

= (978,000 - 32,000 - 58,000 + (26,000 - 10,000)) * 25%

= $226,000

Income tax expense for 2021 = (Pretax Income - Interest income on municipal governmental bonds) * 25%

= (978,000 - 32,000) * 25%

= $236,500

Deferred tax asset - Warranty

= (Warranty expense reported - Actual Warranty) * Income Tax rate

= (26,000 - 10,000)) * 25%

= $4,000

Deferred Tax liability

= Depreciation * Income Tax rate

= 58,000 * 25%

= $14,500

Journal entry

DR Income Tax Expense $236,500

Deferred Tax Asset $4,000

CR Income Tax Payable $226,000

Differed Tax liability $14.50

2. Net Income

= Pretax Accounting Income - Income tax expense

= 978,000 - 236,500

= $741,500

7 0

3 years ago

Your boss has asked you to implement a non-disruptive and incremental approach to ensure business process excellence. What kind

Vesnalui [34]

Answer:

I would propose a business process improvement (BPI) where management will analyze business procedures and try to determine which ones can be improved and how they should be improved. The advantage of using BPI is that it focuses on organizing work around business processes and not individual tasks which makes it non-disruptive, and it is also incremental in nature.

5 0

4 years ago

Lucia Ltd. reported net income of $135,000 for the year ended December 31, 2016. January 1 balances in accounts receivable and a

tester [92]

Answer:

Lucia's cash flows from operating activities would be:

$132,000.

Explanation:

Accounts Receivable End: $30,000 Beginning: $29,000 = -$1,000

Accounts Payable End: $24,000 Beginning: $26,000 = -$2,000

Net Income : $ 135,000

To calculate the total cash flow from operating activities it's necessary to deduct of the Net Income the variance of these accounts which indicates a negative variance during the year, -$2,000 on accounts payable because the company paid more bills these year than before, and -$1,000 because the company expand their credit line to customers.

Cash Flow: $135,000 - $1,000 - $2,000 = $132,000.

4 0

3 years ago

Alpha Computing is a U.S. company that specializes in IT research. It has formed a joint venture with Microchips Inc., a Belgium

lianna [129]

Answer:

The correct answer is option A,strategic alliance

Explanation:

Strategic alliance it is a form of partnership where businesses avail one another strategic resources in the areas of supply chain management,production,marketing,distribution,technological advancement and know-how for the joint benefits and advantage of all partners.

In this case,Alpha as the leader in laptop designing is combining resources with another technological giant Microchips Inc. in order that they may complement each other's efforts.The synergy impact of such arrangement is enormous as each partner concentrates on what he knows best.

8 0

3 years ago

Suggest Stragegies that business can use to remain profitable and sustainable​

Suggest Stragegies that business can use to remain profitable and sustainable