Kawasaki Company incurred the following unit costs in manufacturing digital cameras: Direct Materials $14 Indirect Materials (va
riable) $4 Direct Labor $8 Indirect Labor (variable) $6 Other Variable Factory Overhead $10 Fixed Factory Overhead $28 Variable Selling Expenses $20 Fixed Selling Expenses $14 During the period, the company produced and sold 1,000 units. What is the inventory cost per unit using variable costing
Although consumers do not directly produce waste from manufacturing, they indirectly create it by purchasing products that have been manufactured. Hope this answers the question. Have a nice day. Feel free to ask more questions.
a. Accumulated post-retirement benefit obligation at the end of 2013 and 2014 are $6,461.54 and $9,230.77 respectively.
b. Service costs of 2013 and 2014 are $1,615.38 and $1,846.15 respectively.
a. Calculation of accumulated post-retirement benefit obligationat the end of 2013 and 2014
Attribution period = (55 - 29) = 26 years
Accumulated post-retirement benefit obligation (APRBO) at a year end equal to the expected post-retirement benefit obligation multiply by the division of the number of years he was hired and attribution period. That is,
APRBO at the end of 2013 = $42,000 × (4 ÷ 26) = $6,461.54
APRBO at the end of 2014 = $48,000 × (5 ÷ 26) = $9,230.77
Therefore, accumulated post-retirement benefit obligation (APRBO) at the end of 2013 and 2014 are $6,461.54 and $9,230.77 respectively.
b. Calculation of the service cost for 2013 and 2014
Service cost for a particular year is equal to expected post-retirement benefit obligation for the year divided by the attribution period. Therefore, we have:
Service cost of 2013 = 42,000 ÷ 26 = $1,615.38
Service cost of 2014 = 48,000 ÷ 26 = $1,846.15
Therefore, service costs of 2013 and 2014 are $1,615.38 and $1,846.15 respectively.
In this case, revenue is the total income of a stockholder that he/she has an investment in a business. An increase in stockholders equity means that the total revenue of the stockholder has increased attributable to business activities. A stockholder's equity increases when the share price increases and when the dividend is reinvested in the business.