Answer: D
Explanation:
Use the Mutlilevel List Icon
Answer:
Here the variable cost can be computed using the following formula:
Variable cost = (Sales commissions + Shipping expense + Miscellaneous selling expenses) ×Sales
Variable cost = (4% + 1% + 3/4%) x $500,000 = $28,750
Fixed cost = Sales manager's salary + Advertising expense + Miscellaneous selling expenses
= $30,000 + $25,000 + $2,100
= $57,100
<em>Total selling expense budget = Variable cost + Fixed cost</em>
<em>= $28,750 + $57,100 </em>
<em>= $85,850</em>
Answer:
$2436
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
total goods sold = (total inventory purchased + beginning inventory) - 60
(36 + 126 + 18) - 60
180 - 60
= 120
the 120 units sold would be taken from the inventory purchased on the 22nd and 7
(18 x 22) + [(120 - 18) x 20]
396 + 2040 = 2436
Answer: $5416.64
Explanation:
Based on the information given, $5000 will be deducted from its organizational cost of $17500, and we'll have $12500. Then, the capitalized cost over 6 months that's 180 days will be:
= Non deductible cost / 180 months
= $12500 / 180
= $69.44 per month
Since Ajax Inc began operation in July, the ammortization will be:
= $69.44 × 6 months
= $416.64
The amount that Ajax can deduct from its $17,500 organizational costs on its first tax return will be:
= $5000 + $416.64
= $5416.64
