Answer:
$33,000
Explanation:
The calculation of the fixed cost and the variable cost per machine hour by using high low method is shown below:
Variable cost per hour = (High manufacturing overhead cost - low manufacturing overhead cost) ÷ (High machine hours - low machine hours)
= ($198,000 - $153,000) ÷ (110,000 hours - 80,000 hours)
= $45,000 ÷ 30,000 hours
= $1.5
Now the fixed cost is
= High manufacturing overhead cost - (High machine hours × Variable cost per hour)
= $198,000 - (110,000 hours × $1.5)
= $198,000 - $165,000
= $33,000
The adjusting entry should Fred make on December 31, the end of the accounting period is: Debit Insurance Expense $6,000; Credit Prepaid Insurance $6,000.
Based on the information given the appropriate journal entry to record the transaction is:
Fred company adjusting entry
Debit Insurance Expense $6,000
Credit Prepaid Insurance $6,000
( $2,000 x 3 = $6,000)
Inconclusion the adjusting entry should Fred make on December 31, the end of the accounting period is: Debit Insurance Expense $6,000; Credit Prepaid Insurance $6,000.
Learn more about journal entry here:brainly.com/question/14279491
Answer:
The adjusting entry Fred should make on December 31, the end of the accounting period:
b. Debit : Insurance Expense 6,000 Credit: Prepaid Insurance 6,000
Explanation:
On October 1, Fred Company paid $48,000 for a two-year insurance policy, ($2,000 per month)
From October 1 to December 31, Fred Company has used the insurance for 3 months.
Insurance Expense = $2,000 x 3 = $6,000
The adjusting entry Fred should make on December 31, the end of the accounting period:
Debit Insurance Expense $6,000
Credit Prepaid Insurance $6,000
Answer:
Ending Inventory $ 64,000
Explanation:
To define the final inventory of the company it's necessary to find the cost of good of the period.
As the company had a 43% of gross profit, it means that for every dollar of sales we have 0,43 dollar of Gross Profit, with this value is possible to know the total cost of the goods sold during the period, that it's the difference between Sales Revenue and Gross Profit.
Total Sales Revenue had to be the net value after returns and discounts as it's detailed.
Income Statement
Sales revenue $ 300,000
Cost of goods sold -$ 171,000
Gross Profit $ 129,000 43%
Beginning Inventory $ 60,000
Purchases $ 175,000
Cost of goods sold -$ 171,000
Ending Inventory $ 64,000
Answer:
Option B
Explanation:
In economics, the J-curve impact is frequently used to explain, for example, how a nation's trade balance negatively affects briefly after a depreciation of its exchange rate, then gradually recovers, and eventually exceeds its previous results.
If the currency of a country is appreciated, economists note, there may be a reverse J-curve. For importing nations, the country 's products unexpectedly become more competitive. When other countries will meet the gap at a cheaper profit, the stronger currency would weaken its advantage on exports.
According to the 'J curve effect', a weakening of the U.S. dollar would cause an initial decrease in the current account balance due to the instant effects on import and export prices. However, with time, the balance is likely to increase due to adjustments in export and import volumes. Therefore, the correct response to your question is (b) decrease; increase.
The 'J curve effect' is a theory in international economics that describes the likely effects of a currency devaluation on a country's trade balance. In specific, when the U.S. dollar weakens relative to its trading partners' currencies, it could initially cause a decrease in the current account balance. The reason is that the immediate effect of a weaker dollar is to make foreign imports more expensive and the U.S. exports less valuable, deteriorating the trade balance. However, in the longer term, the trade balance may increase in the current account balance. This is because over time, the cheaper U.S. exports become more appealing to overseas buyers and imports into the U.S. decrease due to their higher price, improving the balance.
So the answer to your question is: a weakening of the U.S. dollar relative to its trading partners' currencies would result in an initial decrease in the current account balance, followed by a subsequent increase in the current account balance. Hence, the correct option is (b) decrease; increase.
#SPJ3
Answer:
4.1 years
Explanation:
The payback period is the time it takes the project to recover the initial investment required to carry it out.
We are not given any information about the actual yearly revenues and costs, but you give the average net cash flow per year, so we can use that amount to calculate the payback period:
the payback period = total investment / net cash flow = $11,500,000 / $2,779,548 = 4.137 ≈ 4.1 years
Answer: a. in the short run but not in the long run
Explanation:
The Short Run is usually considered in Economics/ Business as a point in time where at least ONE factor of production is FIXED. This factor is usually the Factory because it is hard to change the capacity of a Factory in the Short run. For instance a wing might need to be constructed. Labour on the other hand is considered variable in the Short run though because more people can be hired and the people already hired can put in more overtime.
The Long Run is classified as a point where EVERY factor of production is Variable. There is enough time to even change the capacity of a Factory. So here even Factory is Variable.
a. How much warranty expense does the company report in 2015 for this copier?
b. How much is the estimated warranty liability for this copier as of December 31, 2015?
c. How much warranty expense does the company report in 2016 for this copier?
d. How much is the estimated warranty liability for this copier as of December 31, 2016?
Answer:
Explanation:
Requirement 1
Warranty expense in 2015 = $9,000 x 6%
Warranty expense in 2015 = $540
Note: As mention above Hitzu expects warranty cost to be 6% of dollar sales
Requirement 2
Estimate warranty liability as of Dec 2015 = $540
Requirement 3
Warranty expense in 2016 = 0
Requirement 4
Estimated warrant liability as of Dec 2016 = $540 -$114
Estimated warrant liability as of Dec 2016 = $426
Note: As the repair costs 114 on the same day of repair.