Answer:
Company Save $37000 by Buying
Explanation:
given data
make component part = 100 units
Direct Materials = $122000
Direct Labor = 34000
Variable Overhead = 55000
Fixed Overhead = 30000
purchase the component = $200000
fixed costs = $4000
to find out
make or buy decision
solution
first we find here Total Cost for Making component part
total cost = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead ..............1
put here value
total cost for make = $122000 + 34000 + 55000 + 30000
total cost for make = $241000
and
now we find here Total Cost for buying component part
total cost = Purchase Price + fixed costs ............2
put here value we get
total cost for buying = $200000 + $4000
total cost for buying = $204000
so
we can say Company Save = $241000 - $204000 = $37000 by Buying
Answer:
a. 116.9 and the inflation rate was 16.9%
Explanation:
<u>Definition</u>
Consumer Price Index (CPI) is a statistical measure that is constructed using a weighted average market basket of consumer goods and services produced by a household.
CPI = (Cost of market basket ₓ / Cost of market basket ₓ₁) * 100
where x = present year(2014) and x1 = base year(2012)
CPI = (90/77) * 100
CPI = 116.88
CPI = 116.9 (to 1 decimal place)
Inflation =<u>Current year basket cost - Base year basket cost</u> * 100
Base year basket cost
Inflation = <u>90-77</u> * 100
77
Inflation = 16.88
Inflation = 16.9% ( to 1 decimal place)
Answer:
The correct option is Debit Cash $1,864,097; debit Discount on Bonds Payable $135,903; credit Bonds Payable $2,000,000.
Explanation:
This question is an instance of bonds issued at a discount. This happens when a bond is issued below the face value of the bond and also happens when the coupon rate on the bond payable is less than the market rate.
The face value of the bond payable is $2,000,000 while the market value is $1,864,097, so there is a discount of $2,000,000 - $1,864,097 = $135,903 on the bond payable, which is to be amortized over the life of the bond payable.
So, the appropriate journals to record this transaction is as provided above.
Answer:
The answer is $61,000
Explanation:
An impairment loss is recognized when the carrying amount of an asset is less than its fair value(prevailing market price).
The difference between the carrying value and fair value is written off. Carrying amount is the cost of acquiring an asset minus any subsequent depreciation and impairment charges.
Impairment Loss = Book Value – Market Value
Impairment Loss = $177,500 - $116,500
Impairment loss is $61,000
