When an existing contract is replaced with an entirely new contract , it is called

Gato Inc. had the following inventory situations to consider at January 31, its year-end. Identify which of the following items

OverLord2011 [107]

Answer:

(b) Goods shipped on consignment to Logan Holdings Inc. on January 5.

(c) Goods shipped to a customer, FOB destination, on January 29 that are still in transit.

Explanation:

Gato Inc. should include two items in its inventory. Good shipped on consignment to Logan Holdings Inc. should be included in inventory because this is transaction after the closing of December period. Goods shipped tp a customer on January 29 must also be included in the inventory because the goods are still in transit.

4 0

3 years ago

Both Amy and Brad produce and consume apple pie and ice cream. In one hour, Brad makes five apple pies or ten gallons of ice cre

Arte-miy333 [17]

Answer:

Amy has absolute advantage in the production of Apples pies and ice cream.

Amy has comparative advantage in the production of Apple pies.

Brad has a comparative advantage in production of ice creams

Amy should specialise in the production of Apple pies, brad should specialise in the production of icecream

Explanation:

A person has comparative advantage in production if he produces at a lower opportunity cost when compared with other people.

Brad's opportunity cost:

In producing apple pies = 10 / 5 = 2

In producing ice cream :5 / 10 = 0.5

Amy's opportunity cost:

In producing apple pies : 15/15 = 1

In producing icecreams : 15/15 = 1

Amy has the lower opportunity cost when compared with Brad in producing apples pies. Therefore, she has comparative advantage in the production of Apple pies.

Brad has the lower opportunity cost when compared with Amy in producing ice cream. Therefore, he has comparative advantage in the production of ice cream.

A person should specialise and trade the good for which she has a comparative advantage.

A person has absolute advantage in the production of a good or service If he produces more quantity of the good when compared with other people.

Amy has absolute advantage in the production of both goods.

6 0

3 years ago

Jase Manufacturing Co.'s static budget at 7,800 units of production includes $39,000 for direct labor and $3,120 for electric po

Orlov [11]

Answer:

Option A. Variable costs of $56,700 and $43,900 of fixed costs

Explanation:

Given:

Jase Manufacturing Co.'s static budget at 7,800 units of production includes;

Direct labor = $39,000

Electric power = $3,120

Total fixed costs= $43,900

Variable costs = [$(39,000 + 3,120) ÷ 7800] × 10,500= $56,700

Fixed costs = $43,900

8 0

3 years ago

Jared, a supervisor, is discussing an employee with Evan, a human resource manager. Jared explains that the employee’s performan

ryzh [129]

Answer:

Explanation:

Based on the scenario being described within the question it can be said that Evan should advise Jared to withhold the employee's raise, and if the employee does not respond, then her employment should be immediately terminated. This is because the employee is being paid to do certain tasks which she is capable of doing. Neglecting this responsibility must be met with an immediate termination of the employment.

4 0

3 years ago

Read 2 more answers

Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity

shtirl [24]

Answer:

The WACC can be calculated as below;

Explanation:

WACC=E*rs+D*rd+D2*rps/(E+D+D2)

Where E=$250 million

rs=14%

D=$300 million

rd=7%

D2=$50 million

rps=5.8%

Now putting above values in the given formula we get;

WACC=250*14%+300*7%+50*5.8%/(250+300+50)

WACC=$58.9 million/$ 600 million

WACC=9.82%

8 0

4 years ago

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