Under normal conditions (75% probability), financing plan a will produce $25,000 higher return than plan

P Company sold merchandise costing $240,000 to S Company (90% owned) for $300,000. At the end of the current year, one-third of

Ganezh [65]

Answer:

Inter-company profit eliminated = $12,000

Explanation:

Given:

Value of inventory = $300,000

Cost of inventory = $240,000

Computation of Profit recognized on sale profit

Profit recognized on sale = Value of inventory - Cost of inventory

Profit recognized on sale = $300,000 - $240,000

Profit recognized on sale = $60,000

Computation of Profit margin:

Profit margin = [60000/300000]×100 = 20%

Profit margin = 20% = 0.20

Computation of closing Inventory :

Closing Inventory = $300,000 (1/3)

Closing Inventory = $100,000

Profit during the year = $ 92,000

Value of inventory = $100,000 (1-0.20)= $80,000

Inter-company profit eliminated= $92,000 - $80,000 = $12,000

5 0

3 years ago

A company purchased a machine for $140,000 with a useful life of 8 years and a residual value of $10,000. It is estimated that t

densk [106]

Answer:

The amount of accumulated depreciation at the end of the second year is $49,700.

Explanation:

Determining the depreciable cost

Determine the depreciable cost = Acquisition - Residual value.

The depreciable cost = 140,000 - 10,000.

The depreciable cost = $130,000.

Determining the depreciation rate per unit

The depreciation rate per unit = depreciable cost / No. of activity units

replacing:

The depreciation rate per unit= 130,000 / 80,000

The depreciation rate per unit= $1.6 per activity unit.

Determining the amount of accumulated depreciation

The depreciation expense for year 1= Activity units in year 1 × depreciation rate per unit.

The depreciation expense for year 1 = 17,000 × 1.6

The depreciation expense for year 1 = $27,200.

The depreciation expense for year 2= Activity units in year 2 × depreciation rate per unit.

The depreciation expense for year 2 = 15,000 × 1.6.

The depreciation expense for year 2 = $22,500.

The amount of accumulated depreciation = depreciation expense for year 1 + depreciation expense for year 2.

The amount of accumulated depreciation = 27,200 + 22,500.

The amount of accumulated depreciation = $49,700.

6 0

3 years ago

Journalize the entries to record the following transactions for Mountain Realty Inc.:

kherson [118]

Answer and Explanation:

The journal entries are shown below"

On Aug 26

Cash Dr $768,000

To Common stock $640,000

To Additional paid in capital $128,000

(Being issuance of the common stock is recorded)

On Oct 1

Cash Dr $410,000

To preferred stock $410,000

(Being the issuance of the preferred stock is recorded)

On Nov 30

Cash Dr $187,000

To Common stock $170,000

To Additional paid in capital $17,000

(Being issuance of the common stock is recorded)

3 0

3 years ago

The money you pay for an insurance policy is called your

Aleonysh [2.5K]

Answer: Insurance premium

Explanation:

4 0

3 years ago

Raw materials inventory, beginning$1,200 Raw materials inventory, ending1,400 Work in process inventory, beginning7,100 Work in

Tanzania [10]

Answer:

76,800

Explanation:

Given that,

Raw materials inventory, beginning = $1,200

Raw materials inventory, ending = 1,400

Work in process inventory, beginning = 7,100

Work in process inventory, ending = 6,800

Raw materials acquired = 27,800

Cost of direct materials used in production = 27,600

Sales commissions to sell clackers = 2,100

Direct labor cost = 20,000

Total manufacturing overhead = 28,900

Cost of goods manufactured is determined the overall value of goods produced during a particular year and it is ready for sale. It includes all of the expenses that are incurred to convert the inventory in process into finished goods.

Cost of goods manufactured in June:

= Cost of direct material used in production + Direct Labor cost + Manufacturing Overhead + (Beginning work in process - Ending work in process Ending)

= 27,600 + 20,000 + 28,900 + (7,100 - 6,800)

= 76,800

8 0

4 years ago