THIS IS FOR U.S. GOVERNMENT

As in the previous Participation Exercise, the Khalid Company manufactures and sells Paso-the-Salsa, which is a bottled condimen

Ad libitum [116K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Each bottle is sold for $5. The company recently had the following costs to produce 12,000 units of its product during August:

(1) Rent of $5,000 on a billboard to help advertise the product

(2) Rent on factory and equipment of $8,000

(3) Total payroll for hourly-paid, factory workers $24,000

(4) Tomatoes, onions, spices, and bottles $18,000

(5) Total payroll for salaried, administrative staff $6,000

The company sold 8,000 units.

A) First, we need to calculate the total and unitary cost of production:

Total cost= direct material + direct labor + factory overhead

Total cost= tomatoes, onions, spices, and bottles + Total payroll for hourly-paid, factory workers + Rent on factory and equipment

Total cost= 18,000 + 24,000 + 8,000

TC= 50,000

Unitary cost= 50,000/12,000= $4.17 per bottle

Now, we can calculate the cost of goods sold:

COGS= unitary cost* units sold= 4.17*8,000= $33,360

B) Income statement:

Sales= 8,000*5= 40,000

COGS= (33,360)

Gross profit= 6,640

Selling expense= (5,000)

Administrative expense= (6,000)

Net operating income= (4,360)

C) Inventory= unitary cost* ending inventory in units

Inventory= 4.17*4,000= $16,680

4 0

3 years ago

A buyer purchased a new residence for $175,000. The buyer made a down payment of $15,000 and obtained a $160,000 mortgage loan.

Naily [24]

Answer:

Buydown, is the right answer.

Explanation:

This is a buydown mortgage arrangement because in the buydown financing technique the buyer tries to take lower interest rates in the initial year of the loan period. Moreover, some mortgage lenders provide buydown discounts or points as part of their promotion. Secondly, the builder pays the initial payment to the mortgage institution that results in the lower buyer’s payment.

3 0

3 years ago

Ivanhoe Company sublet a portion of its warehouse for five years at an annual rental of $71100, beginning on May 1, 2020. The te

Olenka [21]

Answer and Explanation:

The adjustment should be as follows

Unearned Rent Revenue $47,400

To Rent Revenue $47,400

(Being recording of revenue earned is recorded)

Here unearned rent revenue is debited as it decreased the liabilities and the rent revenue is credited as it increased the revenue. Also liabilities and revenue contains the normal debit balance

The working is shown below:

= $71,100 × 8 months ÷ 12 months

= $47,400

The eight months are calculated from May 1 to December 31

8 0

3 years ago

Jack recently took out a loan from Diane at an interest rate of 4 percent. Diane expected this year’s inflation rate to be 1 per

defon

The complete question has been added with an image for better understanding of the concept. The beneficiaries of the inflation and interest rates will be,

When inflation is 1 percent, Diane will benefit more than Jack;
When inflation is 0 percent; Diane will benefit more than Jack;
When inflation is 4 percent; Jack will benefit more than Diane;
When inflation is -2 percent; Diane will benefit more than Jack.

<h3>What is inflation?</h3>

A given increase in rates or prices of any commodity, including monies, over a particular financial period is known as inflation.

The rates and beneficiaries due to the unexpected change in inflation for the above situation is given attached in the image in the form of a table.

Hence, the significance of inflation is as mentioned.

Learn more about inflation here:

brainly.com/question/15692461

#SPJ1

5 0

2 years ago

The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable

likoan [24]

Answer:

The total budgeted manufacturing overhead for November is $125,000

Explanation:

The total budgeted manufacturing overhead for November comprises of the budgeted variable manufacturing overhead of $5 per direct labor(where total labor hours are 8,500) plus the budgeted fixed manufacturing overhead of $90,000 for the month.

Budgeted variable manufacturing overhead($5*8500) $35,000

Budgeted fixed manufacturing overhead $90,000

Total budgeted manufacturing overhead for November $125,000

The overhead projected to be incurred in November is $125,000

7 0

3 years ago

Read 2 more answers