Answer:
beginning inventory = 3,200 units
units produced during the year = 23,000
units sold during the year = 21,000
ending inventory = 23,000 + 3,200 - 21,000 = 5,200 units
variable costs per unit:
fixed costs:
A) Variable costing calculates COGS using only variable costs since fixed costs are considered period costs and are not carried over.
carrying value of initial inventory:
carrying value of ending inventory:
using variable costing = $415 x 5,200 units = $2,158,000
using absorption costing = ($415 + $75.87) x 5,200 = $2,552,524
B) net profit using variable costing:
total revenue = 21,000 x $620 = $13,020,000
- COGS = 21,000 x $415 = $8,715,000
gross contribution margin = $4,305,000
- total fixed costs = $1,745,000
net income = $2,560,000
C) net profit using absorption costing:
first we need to determine COGS = carrying value beginning inventory + (17,800 x variable manufacturing costs per unit) + (17,800 x fixed manufacturing costs per unit) = $1,570,784 + (17,800 x $355) + (17,800 x $10.6522) = $1,570,784 + $6,319,000 + $189,609 = $8,079,393
total revenue = $13,020,000
- COGS = $8,079,393
gross margin = $4,940,607
- variable SG&A = 17,800 x $60 = $1,068,000
- fixed SG&A = 17,800 x ($1,500,000 / 23,000) = $1,160,870
net income = $2,711,737
Answer:
spreading the cost of an asset over its useful life to the entity.
Explanation:
The depreciation is a non-cash expense that should be charged over the fixed assets i.e. land, buidling, car, etc
It is an expense so the same should be shown on the debit side of the income statement
Also the cost of an asset minus the salvage value divided by the useful life could be spreaded as the depredciation expense by using straight-line method
B.Low openness
C.High agreeableness
D.High neuroticism
E.Low extraversion
Answer:
high conscientiousness
Explanation:
Conscientiousness talks about a personality traits that shows someone as being diligent, reliable and responsible. It also talks about how someone control their desire to act. It is a trait that can be affected by genetic and environmental factors. Conscientiousness also develops more and more in most people as they grow older.
A conscientiousness person is responsible, an organised person who plan very well ahead of time
Answer:
The correct answer is letter "A": High conscientiousness.
Explanation:
Conscientiousness could be seen as an advantage and disadvantage. While some people consider conscientiousness individuals reliable, responsible, careful, and diligent, some others may see them as perfectionists and even workaholics. Then, while selecting a new Chief Executive Officer, the applicant needs to have high conscientiousness but executives in charge of selecting the best prospective manager -Mary in the example, must make sure that the individual balances that skill.
Answer:
A gain from the sale of used equipment for cash should be subtracted from net income
Explanation:
Indirect method make adjustment to reconcile the net income to cash. It depends on the account if it is added or subtracted to net income.
In this case, a gain from the sale of used equipment for cash is subtracted from net income.
1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared.
2. Which method tracks the wear and tear on the equipment most closely?
The straight-line method applies a consistent depreciation expense every year, the units-of-production method correlates depreciation with actual usage, and the double-declining-balance method accelerates depreciation. The units-of-production method tracks wear and tear on the equipment most closely.
Straight-Line Method:
Depreciation expense per year = (Cost - Residual value) / Useful life = ($33,000 - $6,000) / 4 = $6,750
Accumulated depreciation per year = Depreciation expense × Number of years
Book value per year = Cost - Accumulated depreciation
Units-of-Production Method:
Depreciation expense per hour = (Cost - Residual value) / Total estimated hours = ($33,000 - $6,000) / 6,750 = $3.26
Depreciation expense per year = Depreciation expense per hour × Number of hours operated
Accumulated depreciation per year = Sum of depreciation expenses each year
Book value per year = Cost - Accumulated depreciation
Double-Declining-Balance Method:
Depreciation expense = Book value at beginning of year × (2 / Useful life)
Accumulated depreciation per year = Sum of depreciation expenses each year
Book value per year = Cost - Accumulated depreciation
#SPJ12
The straight-line, units-of-production, and double-declining-balance depreciation methods result in different depreciation expenses which are based on the cost, salvage value, and usage of the equipment. The units-of-production method is the most accurate in tracking the wear and tear of the equipment as it considers the actual hours of operation.
The depreciation schedules for the three different methods; straight-line, units-of-production, and double-declining-balance, can be calculated as follows:
The units-of-production method most accurately tracks the wear and tear on the equipment as it directly ties the depreciation expense to the hours of the equipment's operation.
#SPJ11
Borrow $4,500.
Repay $5,500.
Repay $4,500.
Borrow $5,500.
Answer:
Borrow $19,500
Explanation:
The movement in the cash balance between the beginning an end of a period may be expressed as
opening balance + cash collection - cash disbursed = closing balance
As such, where the company has $11,000 cash at the beginning of June and anticipates $31,000 in cash receipts and $36,500 in cash disbursements during June, the expected closing balance
= $11,000 + $31,000 - $36,500
= $5,500
If the company is owing the bank $15,000 then the company would still owe
= $5,500 - $15,000
= ($9,500)
If the company is expected to maintain a balance of $10,000, the amount to be borrowed must be $10000 in excess of the amount owed the bank. Hence amount to be borrowed
= $10000 + $9500
= $19,500