Answer:
60 frozen dinners is better
Explanation:
On december 31 2019 the ledger of lopez company contained the following account balances:Cash $31,500 Maria Lopez, Drawing $12,000Accounts Receivable 2,150 Fees Income 46,250Supplies 1,350 Depreciation Expense 2,000Equipment 24,500 Salaries Expense 15,500Accumulated Depreciation 1,750 Supplies Expense 2,250Accounts Payable 2,250 Telephone Expense 1,850Maria Lopez, Capital 46,750 Utilities Expenses 3,900
Answer:
A. Dec 31, 2019
Dr Fees Income 46,250
Dr Income Summary 46,250
B. Dec 31, 2019
Dr Income Summary 25,500
Cr Depreciation Expense 2,000
Cr Salaries Expense 15,500
Cr Supplies Expense 2,250
Cr Telephone Expense 1,850
Cr Utilities Expense 3,900
C. Dec 31, 2019
Dr Income Summary 21,250
Cr Maria Lopez, Capital 21,250
D. Dec 31, 2019
Maria Lopez, Capital 12,000
Maria Lopez, Drawing 12,000
Explanation:
A. Preparation of the closing entry for revenue.
Dec 31, 2019
Dr Fees Income 46,250
Dr Income Summary 46,250
(To close revenue accounts)
B. Preparation of the closing entry for expenses.
Dec 31, 2019
Dr Income Summary 25,500
(2,000+15,500+2,250+1,850+3,900)
Cr Depreciation Expense 2,000
Cr Salaries Expense 15,500
Cr Supplies Expense 2,250
Cr Telephone Expense 1,850
Cr Utilities Expense 3,900
(To close expense accounts)
C. Preparation of the closing entry for balance of income summary
Dec 31, 2019
Dr Income Summary 21,250
(46,750-25,500)
Cr Maria Lopez, Capital 21,250
(To close balance of income summary)
D.Preparation of the closing entry for the drawing account
Dec 31, 2019
Maria Lopez, Capital 12,000
Maria Lopez, Drawing 12,000
(To close drawing account)
When Zipcar’s Chairman and CEO Scott Griffith, discusses scaling, planning, market size, potential for cities, and reliable technology as a way of a better way to share cars, he is really focusing on the long-term survival and success of the company. This is indicative of the company’s recognition of what concept?
Answer:
C. sustainability
Explanation:
Since in the question it is mentioned that the Chairman and CEO really wants to focused on survival for a long term and the success of the company so here the company would recognize the Sustainability concept as it deals with how the company sustain that could be done in terms of proper planning through which there is a best use for the resources that are minimum
Therefore, the correct option is C.
he following amounts were reported by Howe Company before adjusting its overapplied manufacturing overhead of $16,000. Raw Materials Inventory $80,000 Finished Goods Inventory $120,000 Work in Process Inventory $200,000 Cost of Goods Sold $1,460,000. What is the amount Howe will report as cost of goods sold after it disposes of its overapplied overhead
Answer: $1,444,000
Explanation:
The Cost of Goods sold for a manufacturing company includes the Manufacturing overhead. If the overhead was overapplied, the COGS is inflated and needs a downward adjustment.
COGS after overapplied overhead is disposed of = COGS before disposal - overapplied amount
= 1,460,000 - 16,000
= $1,444,000
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 32,600 Total fixed manufacturing overhead cost $ 195,600 Variable manufacturing overhead per machine-hour $ 4.00 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 550 Direct labor cost $ 1,100 The total job cost for Job T687 is closest to:
Answer:
Total cost= $1,900
Explanation:
Giving the following information:
Total machine-hours 32,600
Total fixed manufacturing overhead cost $ 195,600
Variable manufacturing overhead per machine-hour $ 4.00
Job T687:
Total machine-hours 30
Direct materials $ 550
Direct labor cost $ 1,100
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (195,600/32,600) + 4
Predetermined manufacturing overhead rate= $10 per machine hour
Now, we can determine the total cost:
Total cost= direct material + direct labor + allocated overhead
Total cost= 500 + 1,100 + 10*30
Total cost= $1,900
You purchased a share of stock for $20. One year later you received $1 as a dividend and sold the share for $29. What was your holding-period return?
a. 45%.
b. 30%.
c. 5%.
d. 40%.
e. none of the above.
Answer:
e. none of the above.
Explanation:
Holding period return = ($1 + $29 - $20) / $20
Holding period return = 0.50
Holding period return = 50%
Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $500 and has a unit contribution margin of $200; the Adult model sells for $930 and has a unit contribution margin of $372; and the Recreational model sells for $1,400 and has a unit contribution margin of $560. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $5,680,000, calculate the firm's break-even point in total sales dollars.
Answer:
$14,200,000
Explanation:
The computation of the firm break even point in total sales dollars is shown below:
Particulars Youth Adult Recreational
Sales mix
ratio 0.25 0.45 0.30
(5:9:6)
Contribution
margin $200 $372 $560
Weighted
average CM 50 167.4 168
Selling price $500 $930 $1,400
Weighted
average sales 125 418.50 420
Weighted average
sales 963.50
Weighted average
CM 385.40
CM ratio 40% (385.40 ÷ 963.50)
Now the break even point in sales dollars is
= Fixed cost ÷ contribution margin ratio
= $5,680,000 ÷ 40%
= $14,200,000
Frank is worried about identity theft. He does not like to give access to his checking account to anyone but the bank.
What is the best option for him to pay his bills?
O Frank should telephone in his payment to the company.
Frank should pay his bill online.
Frank should set up automatic withdrawals for the company he is paying.
O Frank should mail a check to the company.
Answer:
Frank should mail a check to the company.
Explanation:
Got it right on Edge!
Frank should mail a check to the company.
What is a mail?A system for physically delivering postcards, letters, and packages is known as the mail or post. The term "mail" in American English often refers to the government service that collects and delivers letters and packages. Anything that is sent to your mail box or post office box is considered mail, including letters, bills, packages, periodicals, and other items sent by the postal service. The equivalent of mail on the internet is email.
In addition to conveying mail, postal authorities frequently perform other duties. In some nations, a postal, telegraph, and telephone (PTT) service also manages the telephone and telegraph networks in addition to the postal system.
What is a company?A group of people can get together to form a company, which is a legal body used to conduct and manage commercial or industrial business operations. Either public or private companies can exist; the former distributes equity to shareholders on a stock exchange, whereas the latter is privately held and unregulated. Companies have a significant role in the health of an economy by providing jobs and luring in disposable income to fuel expansion. The business lines of an organization rely on its structure, which can be a company, a partnership, or even a sole proprietorship. A company can engage into contracts, sue (or be sued), borrow money, pay taxes, own property, and employ people, among other legal rights and obligations, just like an individual can.
To learn more about company, click here
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Jones and Johnson, a law firm, is expanding to incorporate three conference rooms and two executive waiting lounges in its office. Which of the following dimensions of servicescape is the firm addressing? a. Ambient conditions b. Market deployment and evaluation c. Spatial layout and functionality d. Signs, symbols, and artifacts
Answer:
C)Spatial layout and functionality
Explanation:
from the question, we are informed that Jones and Johnson, which is a law firm, is expanding to incorporate three conference rooms and two executive waiting lounges in its office.
In this case, the dimensions of servicescape that the firm is addressing "Spatial layout and functionality"
Spatial layout and functionality reffered to the way the counters, the machinery as well are been set up. The functionality of it bring about high performance, so as the law firm incorporate three conference rooms it speak about the spatial layout.
Exercise 2-54 (Static) Gross Margin and Contribution Margin Income Statements (LO 2-7) The following data are from the accounting records of Niles Castings for year 2. Units produced and sold 85,000 Total revenues and costs Sales revenue $ 264,000 Direct materials costs 68,000 Direct labor costs 34,000 Variable manufacturing overhead 17,000 Fixed manufacturing overhead 44,000 Variable marketing and administrative costs 13,600 Fixed marketing and administrative costs 32,000 Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement.
Answer:
a. Prepare a gross margin income statement.
Sales revenue $264,000
Less Cost of Goods Sold
Cost of Goods Manufactured ($163,000)
Gross Profit $101,000
Less Expenses :
Variable marketing and administrative costs ($13,600)
Fixed marketing and administrative costs ($32,000)
Net Income/ (Loss) $55,400
b. Prepare a contribution margin income statement.
Sales revenue $264,000
Less Cost of Goods Sold
Cost of Goods Manufactured ($119,000)
Contribution $145,000
Less Expenses :
Fixed manufacturing overhead ($44,000)
Variable marketing and administrative costs ($13,600)
Fixed marketing and administrative costs ($32,000)
Net Income/ (Loss) $55,400
Explanation:
Manufacturing Costs Schedule - Absorption Costing
Direct materials $68,000
Direct labor $34,000
Variable manufacturing overhead $17,000
Fixed manufacturing overhead $44,000
Total Manufacturing Costs $163,000
This is the costs of sales for gross margin income statement.
Manufacturing Costs Schedule - Variable Costing
Direct materials $68,000
Direct labor $34,000
Variable manufacturing overhead $17,000
Total Manufacturing Costs $119,000
This is the cost of sales for contribution margin income statement.
ou manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio for the equity fund
Answer:
Reward to volatility ratio = 0.71
Explanation:
Given the expected risk premium = 10%
Standard deviation = 14%
The rate on treasury bills = 6%
The investment amount that the client chooses to invest = $60000
Expected return of equity = the expected risk premium + The rate on treasury bills
Expected return of equity = 10% + 6% = 16%
Standard deviatin = 14%
Reward to volatility ratio = (expected return - risk free rate) /standard deviation
Reward to voltality ratio = (16% -6%)/14%
Reward to voltality ratio = 0.71
Beat Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 40,000 Total fixed manufacturing overhead cost $344,000 Variable manufacturing overhead per machine-hour $ 3.90 Recently, Job M759 was completed. It required 60 machine-hours. The amount of overhead applied to Job M759 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
The amount of overhead applied to Job M759 is closest to: $516
Explanation:
Applied overheads = Predetermined overhead rate × Actual Activity
Where,
Predetermined overhead rate = Budgeted Fixed Overheads ÷ Budgeted Activity
therefore,
Predetermined overhead rate = $344,000 ÷ 40,000 machine hours
= $8.60 per machine hour
Applied overheads (Job M759) = $8.60 × 60 machine-hours
= $516
Other Information Check no. 1462 was outstanding from February. A credit memo for collection of accounts receivable was included in the bank statement. All checks were paid at the correct amount. The bank statement included a debit memo for service charges. The February 28 bank reconciliation showed a deposit in transit of $1,150. Check no. 1468 was for the purchase of equipment. The unadjusted Cash account balance at March 31 was $13,060. Required: Prepare the bank reconciliation for Pyle Garage at the end of March. Explain how the adjustments described above affect the cash account.
Answer:
Reconciliation of bank account:
Bank account balance $14,125
+ deposits in transit $3,593
- outstanding checks ($1,546) and ($793)
reconciled bank account $15,379
Reconciliation of cash account:
Cash account balance $13,060
+ Note collected by bank $3,098
- Bank fees ($69)
- Error in processing check # 1468 ($710)
reconciled cash account $15,379
Since all checks were paid at the correct amount, that means that the company's accountant made a mistake when he/she registered check #1468 and that mistake must be corrected in the cash account reconciliation.
Credit memos collected by the bank increase the company's cash account.
Debit memos (bank fees) decrease the company's cash account.
The previous month's reconciliation doesn't affect this month's reconciliation.
Explanation:
the information is incomplete, so I looked for it:
BANK STATEMENT HAZARD STATE BANK 215 MAIN STREET HAZARD, GA 30321 - Account number 62-00062 - March 31, 2018
Beginning balance 3/1/2018 $9,083
Total deposits and other credits 30,155
Total checks and other debits 25,110
Ending balance 3/31/2018 14,125
Checks and Debits
Check No. Amount
1462 $3,805
1463 1,693
1464 8,050
1465 2,951
1466 1,455
1467 6,230
DM 69
1468 860
Deposits and Credits
Date Amount
March 1 $1,150
March 2 6,554
March 6 4,987
March 12 6,219
March 17 6,013
March 22 2,134
CM 3,098
The following is a list of checks and deposits recorded on the books of Pyle Garage for March 2018:
Date Check No. Amount of Check Date Amount of Deposit
March 1 1463 $1,693 March 1 $6,554
March 5 1464 8,050 March 5 4,987
March 6 1465 2,951
March 9 1466 1,455 March 10 6,219
March 10 1467 6,230
March 14 1468 150 March 16 6,013
March 19 1469 1,546 March 19 2,134
March 28 1470 793 March 29 3,593
Use the supply and demand schedules below to answer the following questions: Price Quantity Demanded Quantity Supplied $10 100 20 15 80 40 20 60 60 25 40 80 30 20 100 Instructions: Enter your answers as a whole number. a. What is the equilibrium price and quantity? Market equilibrium price: $ Market equilibrium quantity: units b. What is the market price if there is a shortage of 40 units? $
Answer:
$20
60
$15
Explanation:
equilibrium is the point where quantity supplied equals quantity demanded.
Equilibrium price is the price at which quantity supplied equals quantity demanded. = $20
equilibrium quantity is the quantity at which quantity supplied equals quantity demanded. = $60
There is a shortage at the point where quantity demanded exceeds quantity supplied. shortage occurs below equilibrium. At $15, quantity demanded exceeds quantity supplied by 40 units
Shares Remaining After Recapitalization Dye Trucking raised $290 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $8.5. If Dye had 75 million shares of stock before the recap, how many shares does it have after the recap? Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to two decimal places. million shares
Answer: 40.8824 million
Explanation:
From the question, we are informed that Dye Trucking raised $290 million in new debt and used this to buy back stock and that after the recap, Dye's stock price is $8.5.
If Dye had 75 million shares of stock before the recap, the number of shares that it'll have after the recap goes thus:
The number of shares repurchased is:
= $290million/$8.5
= 34,117,647
= 34.1176 million
Shares after the recap will now be:
= 75 million - 34.1176 million
= 40.8824 million
Project A is opening a bakery at 10 Center Street. Project B is opening a specialty coffee shop at the same address. Both projects have unconventional cash flows, that is, both projects have positive and negative cash flows that occur following the initial investment. When trying to decide which project to accept, given sufficient funding to accept either project, you should rely most heavily on the _____ method of analysis.
Answer:
The correct approach will be "NPV (Net present value)".
Explanation:
NPV concessions as well as reduce all potential investment returns from the campaign.
⇒ NPV = Present value of cash inflows - Present value of cash outflows
While using the NPV methodology with the appropriate project cost, we can determine is not whether the project is reasonable. Unless the Net present value is positive, the venture can not be dismissed and rejected whether it is poor or negative.
Below are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities.
Income Statement Current Projected
Sales na 1,500
Costs na 1,050
Profit before tax na 450
Taxes na 135
Net income na 315
Dividends na 95
Balance sheets Current Projected Current Projected
Current assets 100 115 Current liabilities 70 81
Net fixed assets 1,200 1,440 Long-term debt 300 360
Common stock 500 500
Retained earnings 430 650
Based on the projections, Decker will have:___________.
a.) a financing deficit of $36
b.) a financing surplus of $36
c.) a financing deficit of $255
d.) zero financing surplus or deficit
e.) a financing surplus of $255
Answer:
Decker Enterprises
Based on the projections, Decker will have:___________:
b.) a financing surplus of $36
Explanation:
a) Data and Calculations:
Income Statement Current Projected
Sales na 1,500
Costs na 1,050
Profit before tax na 450
Taxes na 135
Net income na 315
Dividends na 95
Balance sheets Current Projected Current Projected
Current assets 100 115 Current liabilities 70 81
Net fixed assets 1,200 1,440 Long-term debt 300 360
Common stock 500 500
Retained earnings 430 650
Total 1,300 1,555 Total 1,300 1,591
b) Financing surplus 36
c) Decker Enterprises does not need additional financing, but has excess financing because the Liabilities and Equity are greater than the assets.
Juniper Company uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the payment on August 16 is:_________
a) Debit Merchandise Inventory $8,250; credit Cash $8,250.
b) Debit Accounts Payable $8,250; credit Merchandise Inventory $82.50; credit Cash $8,167.50.
c) Debit Accounts Payable $9,750; credit Merchandise Inventory $97.50; credit Cash $9,652.50.
d) Debit Accounts Payable $8,167.50; credit Cash $8,167.50.
Answer:
b) Debit Accounts Payable $8,250; credit Merchandise Inventory $82.50; credit Cash $8,167.50
Explanation:
Preparation of correct journal entry to record the payment on August 16
Based on the information given we were told that the company made a purchased of the amount of $9,750 of merchandise with terms of 1/10 and as well made returned of the amount of $1,500 worth of the merchandise while the full amount due was paid on August 16 which means that the journal entry to record the payment on August 16 will be :
Debit Accounts Payable $8,250
($9,500-$1,500)
Credit Merchandise Inventory $82.50
(1%×$8,250)
Credit Cash $8,167.50
[(100%-1%)×$8,250)]
Both wages and employment can increase at the same time as long as the:____________
Answer:
supply of labor is lower than the demand
Explanation:
Consider for example a country is in need of Doctors, and the number of available doctors is quite low than the demand; such that hospitals wanting to increase their capacity begin to offer higher wages in other to employ available doctors. This evidently will in the short run lead to an increase in wages and employment for new doctors.
Madison Corporation sells three products (M, N, and O) in the following sales mix: 3:1:2. Unit price and cost data are: M N O Unit sales price $ 7 $ 4 $ 6 Unit variable costs 3 2 3 Total fixed costs are $340,000. The contribution margin per composite unit for the current sales mix (round to the nearest cent) is:
Answer:
M = $4
N = $2
O = $3
Explanation:
Contribution margin = Sales - Variable Costs
Therefore,
M N O
Sales $ 7 $ 4 $ 6
Less Variable costs ($ 3) ($ 2) ($ 3)
Contribution $4 $2 $3
The balance sheet of Cattleman's Steakhouse shows assets of $86,800 and liabilities of $15,300. The fair value of the assets is $89,200 and the fair value of its liabilities is $15,300. Longhorn paid Cattleman's $83,420 to acquire all of its assets and liabilities. Longhorn should record goodwill on this purchase of:____________
$9,520
Explanation:
Calculation for to record goodwill on this purchase
Using this formula
Goodwill =Amount paid to acquire assets and liabilities-(Fair value of the assets-Fair value of its liabilities)
Let plug in the formula
Goodwill =$83,420-($89,200-$15,300)
Goodwill=$83,420-$73,900
Goodwill=$9,520
Therefore Longhorn should record goodwill on this purchase of:$9,520
Aldricus is a shutterbug. He takes his camera everywhere he goes. He has hung hundreds of pictures on his walls. For Aldricus, photography is a _____.
hobby
career
bore
job
Answer:
hobby
Explanation:
just took the test
Comet Company is owned equally by Pat and his sister Pam, each of whom hold 165 shares in the company. Pam wants to reduce her ownership in the company, and it was decided that the company will redeem 83 of her shares for $1,660 per share on December 31, 20X3. Pam's income tax basis in each share is $700. Comet has total E&P of $330,000. What are the tax consequences to Pam because of the stock redemption?
Answer: The answer is given below
Explanation:
The following can be gotten from the question
The redemption value of the share = $1660
Less: tax basis = $700
Capital gain: $1660 - $700 = $960
Number of shares that'll b redeemed = 83 shares
Therefore, the capital gain and the tax basis in each of the remaining shares of 700 will be:
= $960 × 83
= $79680
At the beginning of the year, Gilles Company had total assets of $800,000 and total liabilities of $300,000. Answer the following questions. (a) If total assets increased $150,000 during the year and total liabilities decreased $60,000, what is the amount of owner's equity at the end of the year? (b) During the year, total liabilities increased $100,000 and owner's equity decreased $70,000. What is the amount of total assets at the end of the year? (c) If total assets decreased $80,000 and owner's equity increased $120,000 during the year, what is the amount of total liabilities at the end of the year? g
Answer and Explanation:
Accounting equation is
Total assets = Total liabilities + Shareholder equity
The equity would be
= $800,000 - $300,000
= $500,000
a. The equity would be
Total assets = $800,000 + $150,000 = $950,000
Total liabilities = $300,000 -$60,000 = $240,000
So, the equity is
= $950,000 - $240,000
= $710,000
b. Total assets
Total liabilities = $300,000 + $100,000 = $400,000
Owner equity = $500,000 - $70,000 = $430,000
So, the total assets is
= $400,000 + $430,000
= $830,000
c. Total liabilities equal to
Total assets = $800,000 - $80,000 = $720,000
Total equity = $500,000 + $120,000 = $620,000
So, the total liabilities
= $720,000 - $620,000
= $100,000
Miller Park Stadium Project Case Study
Answer:
what about it lol there's no question
Wiggins Company has 2,000 shares of $100 par preferred stock, which were issued at par. It also has 35,000 shares of common stock outstanding, and its total stockholders' equity equals $795,000. The book value per common share is:________
a) $16.08.
b) $2271.
c) $21.49.
d) $100.00.
e) $17.00.
Answer:
e) $17.00 shares
Explanation:
Calculation for the book value per common share
First step is to calculate for the Preferred stock claim
Using this formula
Preferred stock claim= Company shares × Par preferred stock
Let plug in the formula
Preferred stock claim= 2,000 shares x $100 par share
Preferred stock claim= $200,000
Second step is to calculate for the Book value per common share using this formula
Book value per common share=(Total stockholders' equity-Preferred stock claim)/Common stock outstanding shares
Let plug in the formula
Book value per common share=($795,000 - $200,000)/35,000 shares = $16 share
Book value per common share=$595,000/35,000 shares
Book value per common share= $17.00 shares
Therefore the book value per common share will be $17 shares
If a company is considering the purchase of a parcel of land that was acquired by the seller for $101,000 is offered for sale at $182,000, is assessed for tax purposes at $111,000, is considered by the purchaser as easily being worth $172,000, and is purchased for $169,000, the land should be recorded in the purchaser's books at:
Answer:
$169,000
Explanation:
Based on the information given we were been told that in a situation were a land which was acquired by the seller for the amount of $100,000 was been purchased at the amount of $169,000 which simply means that the land should be recorded in the purchaser's books at the amount of $169,000 which is the costs or amount in which the land was PURCHASED by the company.
Selected current year company information follows: Net income $ 15,953 Net sales 712,855 Total liabilities, beginning-year 83,932 Total liabilities, end-of-year 103,201 Total stockholders' equity, beginning-year 198,935 Total stockholders' equity, end-of-year 121,851 The return on total assets is:
Answer:
Return on total assets =7.09%Explanation:
Return on total asset is the proportion of the total amount invested in assets that is earned as net income. It is a measure of the efficiency of the use of assets to generate profit.
It is calculated as follows:
Return on total assets = Net Profit/Total assets× 100
Note that Total assets = Total liabilities + stockholder's equity
Data:
Total assets = 103,201 + 121,851 = 225,052
Net income = 15,953
Return on total assets = 15,953/225,052 × 100= 7.09%
Return on total assets =7.09%
Why is the answer D?
Explanation:
When gas prices are low, there is less need for alternative fuel cars, so the demand falls. People will be less willing to pay high prices, so the price also falls. And since there's less demand, there doesn't need to be as many cars on the market, so the equilibrium quantity falls.
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following. Work in Process Inventory Date ExplanationDebit Credit Balance Dec.31 Direct materials cost1,900,000 1,900,000 31 Direct labor cost210,000 2,110,000 31 Overhead applied684,000 2,794,000 31 To finished goods 2,723,000 71,000 1. Determine the predetermined overhead rate used (based on direct materials cost). 2. Only one job remained in work in process inventory at December 31. Its direct materials cost is $22,000. How much direct labor cost and overhead cost are assigned to this job
Answer:
1. Overhead rate = Overhead costs / Direct material costs
Overhead rate = $684,000 / $1,900,000
Overhead rate = 0.36
Overhead rate = 36%
2. How much direct labor cost and overhead cost are assigned to this job?
Total cost of job in process $71,000
Less: Overhead applied $7,920
($22,000 * 36%)
Less: Material cost of job in process $22,000
Direct labor cost $41,080
Hence, direct labor cost is $41,080 and Overhead cost is $7,920
If the level of productivity increases, then:___________A. The marginal cost curve shifts upward.B. Market price increases.C. The marginal cost curve shifts downward.D. The firm will supply less output.
Answer: C. The marginal cost curve shifts downward.
Explanation:
The level of productivity increasing means that the company is now goods per input which means that they are now more efficient at producing goods and services.
More efficiency in a company will mean that the company is spending less per input so its costs will reflect this. With marginal cost showing the effect per additional unit, this reduction in cost will be reflected by a shift downward in the Marginal cost curve.