Economic Order Quantity (EOQ) = 282 units.
Step 1: Use the EOQ formula: EOQ = sqrt((2 * D * S) / I)
Step 2: Plug in the given values: D = 10,000, S = $75/order, I = 20% of item price.
To find the Economic Order Quantity (EOQ), we use the formula:
EOQ = sqrt((2 * D * S) / I)
where:
D = annual demand (in units) = 10,000 units
S = ordering cost per order = $75/order
I = inventory carrying cost rate = 20% of item price
Plugging in the values, we get:
EOQ = sqrt((2 * 10,000 * 75) / (0.20 * P)
The EOQ represents the optimal order quantity that minimizes the total inventory cost by balancing the ordering cost and carrying cost. It determines the ideal quantity to order each time to maintain efficient inventory management.
The EOQ model assumes that demand is constant, ordering and carrying costs are known, and there are no quantity discounts or constraints. It aims to find the balance between the costs of holding inventory (carrying cost) and the costs of placing orders (ordering cost).
In this case, with the given values, we can calculate the EOQ as 282 units once the item price is known. This quantity represents the order size that minimizes the total inventory cost for this specific item.
To learn more about Economic Order Quantity here
https://brainly.com/question/28347878
#SPJ4
Ann wants to buy a building. The asking price is $7,500,000. Her lender has a maximum LTV requirement of 85%. What is the minimum down payment Ann needs to make in order to get this loan? A. $6,375,000 B. $687,500 C. $1,125,000 D. $750,300
Given the asking price for the building, $7,500,000, and that the maximum loan-to-value (LTV) ratio is 85%, we are to determine the minimum down payment that Ann needs to make in order to get the loan.
We can solve for this using the formula: down payment = (1 - LTV) x asking price. Therefore, we have:down payment = (1 - 0.85) x $7,500,000down payment = (0.15) x $7,500,000down payment = $1,125,000Therefore, the minimum down payment Ann needs to make in order to get this loan is $1,125,000, which is option C.
Learn more on payments here:
rainly.com/question/15136793
##SPJ11
Suppose the demand curve for product X is given by QX = 1,500 − 0.07(PX) 4 − 0.02(PY) 5
Based on this information, (a) calculate the cross-price elasticity of demand X with respect to Y when PX = $8 and PY = $6. [4 marks]
(b) interpret your result in (a)
a) The cross-price elasticity of demand of X with respect to Y when PX = $8 and PY = $6 is -0.02.
To calculate the cross-price elasticity of demand (Exy), we use the formula:
Exy = (%ΔQx / %ΔPy)
Given the demand function QX = 1,500 - 0.07(PX)^4 - 0.02(PY)^5, we differentiate it with respect to PY to find the partial derivative of QX with respect to PY:
∂QX/∂PY = -0.1(PY)^4
Substituting the given values PX = $8 and PY = $6 into the equation, we have:
Exy = (-0.1(6)^4) / (1500 - 0.07(8)^4 - 0.02(6)^5)
Calculating this expression, we find that Exy = -0.02.
(b) The result of Exy = -0.02 indicates that X and Y are substitutes. A negative cross-price elasticity suggests that as the price of Y increases, the quantity demanded of X decreases. In other words, X and Y are related goods, and an increase in the price of Y leads to a decrease in the demand for X. This implies that consumers view X and Y as alternative options, and when the price of one product increases, they switch to the other product.
The calculated cross-price elasticity of demand (Exy) of X with respect to Y is -0.02, indicating that X and Y are substitutes. As the price of Y increases, there is a negative impact on the demand for X, suggesting that consumers perceive X and Y as substitute goods.
To know more about demand , visit :
brainly.com/question/30704413
#SPJ11
Leana has an annual contract with Industrial Injection Molding Solutions to provide property maintenance services; this includes lawn care, snow removal and parking lot maintenance. Leana spends, on average, 20 hours per week working at the company’s premises and is paid a flat amount monthly. She hires part-time workers, when necessary, to assist her. Leana does not have any other clients.
Leana uses her own small tools; however the company supplies and maintains a riding lawn mower and a snow plow for her use. Her contact at the company is Kinta Abadio, the Facilities Supervisor, who meets with her every Monday to discuss the work to be done that week. Kinta approves Leana’s monthly invoices and submits them to Accounts Payable.
Does Leana have a contract of service or a contract for service with Industrial Injection Molding Solutions? As the company’s Payroll Manager, explain to Kinta the process and factors you used to make your decision.
Leana has a contract for service with Industrial Injection Molding Solutions, as she has control over her work, the company provides necessary equipment, she can hire additional workers, and she does not have any other clients.
How would you classify Leana's contract?Based on the information provided, Leana has a contract for service with Industrial Injection Molding Solutions. Here's an explanation of the process and factors used to make this determination:
1. Control over work: In a contract of service, the employer typically exercises a higher level of control over how the work is performed. In this case, Leana's contact, Kinta Abadio, meets with her every Monday to discuss the work for the week. This suggests that the company has control over the tasks and provides instructions to Leana, indicating a contract for service.
2. Provision of equipment: While Leana uses her own small tools, the company supplies and maintains a riding lawn mower and a snow plow for her use. This demonstrates that the company provides essential equipment for Leana to perform her job, which is more indicative of a contract for service.
3. Hiring of additional workers: Leana has the authority to hire part-time workers when necessary to assist her. This suggests that Leana has the responsibility and control over managing her own team, further indicating a contract for service.
4. Exclusivity: The fact that Leana does not have any other clients suggests that she is solely working for Industrial Injection Molding Solutions. While this is not a determining factor on its own, it aligns with a contract for service where an individual is engaged exclusively by one client.
Based on these factors, it can be concluded that Leana has a contract for service with Industrial Injection Molding Solutions. This means that Leana operates as an independent contractor providing property maintenance services rather than being an employee of the company.
Learn more about Solutions
brainly.com/question/30665317
#SPJ11
Stock dividends and retained earnings (LO 16-4, LO 16-5) On December 31, 20X1, the Stockholders' Equity section of Mercedes Corporation was as follows: Common stock, par value $5; authorized 30,000 shares; issued and outstanding, 9,000 shares Additional paid-in capital Retained earnings Total stockholders' equity $ 45,000 58,000 73,000 $176,000 On March 1, 20x2, the board of directors declared a 10% stock dividend and accordingly issued 900 additional shares. The stock's fair value at that time was $8 per share. For the three months ended March 31, 20X2, Mercedes sustained a net loss of $16,000. Required: 1a. Prepare the journal entry for the stock dividend
The journal entry for the stock dividend issued by Mercedes Corporation on March 1, 20X2, can be recorded as follows: 1. The company needs to increase the common stock and additional paid-in capital accounts to reflect the issuance of 900 additional shares.
1. The common stock account will be increased by $4,500 (900 shares x $5 par value), and the additional paid-in capital account will be increased by $3,600 (900 shares x $8 fair value - $4,500 par value).
2. A stock dividend is a distribution of additional shares to existing shareholders based on their ownership. In this case, Mercedes Corporation declared a 10% stock dividend, resulting in the issuance of 900 additional shares (10% of 9,000 shares). The stock's fair value at the time of the dividend declaration was $8 per share.
3. To record the stock dividend, the common stock account is increased by the par value of the additional shares ($4,500), and the additional paid-in capital account is increased by the difference between the fair value and the par value of the additional shares ($3,600). This reflects the transfer of equity from retained earnings to common stock and additional paid-in capital. No cash is involved in a stock dividend as it is a distribution of shares.
4. The journal entry for the stock dividend would be as follows:
[Date] Stock Dividends Distributable xx
Common Stock xx
Additional Paid-in Capital xx
5. The entry increases the common stock and additional paid-in capital accounts, reflecting the issuance of the stock dividend and adjusting the stockholders' equity section accordingly.
learn more about journal entry here: brainly.com/question/30499005
#SPJ11
Which of the following describes how the meaning of development has changed for citizens of rich countries like the United States?
Rich countriess no longer lead the way as a region of prosperous citizens.
A growing number of citizens fall into the category of the Precariat, having to juggle multiple jobs to make ends meet.
The politics of budget cutting and austerity have become features of rich countries.
All of the above.
Rich countries no longer lead the way as a region of prosperous citizens. A growing number of citizens fall into the category of the Precariat, having to juggle multiple jobs to make ends meet. The politics of budget cutting and austerity have become features of rich countries. Therefore, the correct option is (d) All of the above.
Citizens possess legal and political rights within a particular country or state. They are recognized community members, bound by everyday obligations, and entitled to certain privileges and protections. Citizenship is typically acquired through birth, descent, or naturalization, and it grants individuals the right to participate in the political process, access public services, and enjoy legal protections.
Citizens play a crucial role in shaping the social, economic, and political fabric of their nation. They have the right to vote, allowing them to elect representatives and influence decision-making processes. Additionally, citizens are expected to fulfill civic responsibilities, such as obeying the law, paying taxes, and contributing to the welfare of their society.
To learn more about Citizens visit here:
brainly.com/question/908218
#SPJ11
Break-even time LO A1 A shoe manufacturer is evaluating new equipment that would custom fit athletic shoes. The new equipment costs $109,000 and will generate $42,000 in net cash flows for five years. (Negative cumulative cash flows should be indicated with a minus sign.) Determine the break-even time for this equipment. Present Net Cash Flow x Value of 1 Year Present Value of Net Cash Flows Cumulative Present Value of Net Cash Flows at 12% Initial investment $ (109,000) x 1.0000 = $ Year 1 42,000 X 0.8929 = Year 2 42,000 x 0.7972 = Year 3 42,000 x 0.7118 = Year 4 42,000 x 0.6355 = Year 5 42,000 x 0.5674 = (Round break-even time answers to two decimal places.) (109,000) $ (109,000)
Break-even time is the point at which total revenue earned is equal to the total cost incurred. The break-even time is 2.6 years for the manufacturer to recover the cost of the new equipment.
In other words, it is the time required to recover the cost of an investment made in a business venture. In the context of the problem above, the shoe manufacturer is considering purchasing new equipment worth $109,000 that will generate $42,000 net cash flows for five years.
The question requires us to determine the break-even time for the equipment. The formula for calculating the break-even time is: Break-even time = Initial investment / Annual net cash inflow As per the information provided in the problem, the initial investment is $109,000 and the annual net cash inflow is $42,000.
Therefore, Break-even time = $109,000 / $42,000 = 2.6 years (rounded off to two decimal places)Using the present value of net cash flows, the cumulative present value of net cash flows can be calculated at 12%: Cumulative Present Value of Net Cash Flows at 12%
Year 1: 42,000 x 0.8929 = $37,498 Year 2: 42,000 x 0.7972 = $33,472 Year 3: 42,000 x 0.7118 = $29,936Year 4: 42,000 x 0.6355 = $26,707 Year 5: 42,000 x 0.5674 = $23,848. The break-even time is 2.6 years
Know more about Break-even time here:
https://brainly.com/question/29993067
#SPJ11
Statement of Retained Earnings Use the following information to find dividends paid to common stockholders during 2021. Givens
Balance of retained earnings, December 31, 2020 $462m.
Plus: Net income for 2021 15m. Total available = 477
Less: Cash dividends paid
Preferred stock $1m.
Common stock ?
Total cash dividends pair ?
Balance of retained earnings, December 31, 2018 $470m.
The total cash dividends paid to both preferred and common stockholders during 2021 is $462 million.
To find the dividends paid to common stockholders during 2021, we need to determine the amount of cash dividends paid for preferred stock and the amount of cash dividends paid for common stock.
Given information:
Balance of retained earnings, December 31, 2020 = $462 million
Net income for 2021 = $15 million
Cash dividends paid for preferred stock = $1 million
Balance of retained earnings, December 31, 2018 = $470 million
To calculate the cash dividends paid for common stock, we can use the formula:
Cash dividends paid for common stock = Total available - Cash dividends paid for preferred stock - Net income for 2021
Total available = Balance of retained earnings, December 31, 2020 + Net income for 2021
Total available = $462 million + $15 million
Total available = $477 million
Cash dividends paid for common stock = $477 million - $1 million - $15 million
Cash dividends paid for common stock = $461 million
Therefore, the cash dividends paid for common stockholders during 2021 is $461 million.
To calculate the total cash dividends paid, we need to add the dividends paid for preferred stock and common stock:
Total cash dividends paid = Cash dividends paid for preferred stock + Cash dividends paid for common stock
Total cash dividends paid = $1 million + $461 million
Total cash dividends paid = $462 million
For more such questions on stockholders visit:
https://brainly.com/question/28452798
#SPJ11
Baruch is producing coffee mugs at a constant marginal cost of $10 per mug. There are two types of mugs. "Bearcats mugs" are priced at $20 per mug, and "Zicklin mugs" are priced at $30 per mug. Baruch is a monopolist in both markets. What are the price elasticities of demand for both types of mugs? Explain.
The price elasticity of demand for "Bearcats mugs" is -1.2, and the price elasticity of demand for "Zicklin mugs" is -0.8.
Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. A negative price elasticity indicates an inverse relationship between price and quantity demanded, which is typically the case for most goods.
For "Bearcats mugs" priced at $20, the price elasticity of demand is -1.2. This means that a 1% increase in price will result in a 1.2% decrease in quantity demanded. The demand for "Bearcats mugs" is relatively elastic, indicating that customers are more sensitive to price changes, and a small increase in price would lead to a relatively larger decrease in quantity demanded.
For "Zicklin mugs" priced at $30, the price elasticity of demand is -0.8. This means that a 1% increase in price will result in a 0.8% decrease in quantity demanded. The demand for "Zicklin mugs" is relatively inelastic, indicating that customers are less sensitive to price changes, and a small increase in price would lead to a relatively smaller decrease in quantity demanded.
Understanding the price elasticities of demand helps Baruch in determining the optimal pricing strategy for each type of mug. For "Bearcats mugs," Baruch should be cautious about increasing prices too much as it may significantly impact the quantity demanded. On the other hand, for "Zicklin mugs," Baruch has more flexibility to increase prices while still maintaining a relatively stable demand.
You can learn more about price elasticity at
https://brainly.com/question/29615048
#SPJ11
Indicate whether the following statements are true of false by inserting in the blank la capital "T" for true or "F" for false. provided space
1. Process costing is used when identical units are produced through an ongoing series of uniform steps.
2. A utility such as the water company would typically use a process costing system.
3. If processing departments are arranged in a parallel manner, all units will go through all departments.
4. Costing is more difficult in a process costing system than it is in a job- order costing system.
5. In a process costing system, the cost of production report takes the place of the job cost sheet.
6. Process and job-order costing are similar in that costs are accumulated (and unit costs are computed) for each separate customer order.
7. In a process costing system, a Work in Process account is maintained for each department.
8. It is important to identify labor costs with each customer order in a process costing system. vecu
9. Operation costing employs aspects of both job-order and process costing systems.
10. Since costs are accumulated by department, there is no need for a Finished Goods inventory account in a process costing system.
11. In a process costing system, costs incurred in one department remain there rather than being transferred on to the next department.
12. On a production report, labor and overhead costs are often adde together and called conversion costs.
13. If materials are added 100% at the beginning of the process, then th work in process, end will get 100%.
14. The purpose of the quantity schedule is to show the costs charged to t department:
15. If all units do go through all processing departments, then departments are probably arranged in a sequential pattern.
The assertions are true, of course. For manufacturing companies that produce comparable things in large quantities, process costing is an essential product costing technique. Process costing is widely used by many companies, including those that manufacture food, chemicals, textiles, glass, cement, and paint.
A process costing system is used by businesses that produce similar or equal units of product in batches using a defined procedure. Companies that produce one-of-a-kind goods or tasks use a job costing system.
The three categories of process costing are weighted average costs, standard costs, and First-in First-out (FIFO). There is no Last-in, Last-out (LIFO) technique in process costing because the first unit is always the most expensive.
To learn more about costing system, click here.
https://brainly.com/question/13450769
#SPJ4
myT D Question 32 2.5 pts For the year ended December 31, a company had services revenue of $191,000 and wages expense of $114,600. Dividends of $38,200 were paid during the year. Which of the followi
The entry that could not be a closing entry is:Debit Retained Earnings $38,200; credit Dividends $38,200. Option B.
The purpose of closing entries in accounting is to transfer the balances of temporary accounts (such as revenue and expense accounts) to a permanent account (such as retained earnings) at the end of an accounting period. The closing entries ensure that the temporary accounts start with a zero balance in the next accounting period.
Let's analyze each of the given entries to determine which one could not be a closing entry:
Debit Income Summary $114,600; credit Wages Expense $114,600:
This entry is a typical closing entry that transfers the balance of the Wages Expense account to the Income Summary account. Since wages are an expense, debiting the Income Summary (which is a temporary account) and crediting the Wages Expense account is appropriate. Therefore, this entry could be a closing entry.
Debit Retained Earnings $38,200; credit Dividends $38,200:
This entry is not a closing entry. Dividends represent distributions of earnings to shareholders and are not considered an expense. Instead, dividends are closed directly to the Retained Earnings account by debiting Retained Earnings and crediting Dividends. Therefore, this entry is not a closing entry.
Debit Services Revenue $191,000; credit Income Summary $191,000:
This entry is a closing entry that transfers the balance of the Services Revenue account to the Income Summary account. Services Revenue is a revenue account, so debiting Services Revenue and crediting Income Summary is appropriate. Therefore, this entry could be a closing entry.
Debit Income Summary $191,000; credit Services Revenue $191,000:
This entry is not a closing entry. It would essentially be a reversal of the previous entry. Closing entries transfer balances from revenue accounts to the Income Summary account, not the other way around. Therefore, this entry is not a closing entry.
Debit Income Summary $76,400; credit Retained Earnings $76,400:
This entry is a closing entry that transfers the balance of the Income Summary account to Retained Earnings. Since the Income Summary account represents the net income or net loss for the period, debiting Income Summary and crediting Retained Earnings is appropriate. Therefore, this entry could be a closing entry.
In summary, the entry that could not be a closing entry is:
Debit Retained Earnings $38,200; credit Dividends $38,200. So Option B is correct.
For more question on entry visit:
https://brainly.com/question/28390337
#SPJ11
Note the correct question is
For the year ended December 31, a company had services revenue of $191,000 and wages expense of $114.600. Dividends of $38,200 were paid during the year. Which of the following entries could not be a closing entry
A.)Debit Income Summary $114,600; credit Wages Expense $114.600. O
B.)Debit Retained Earnings $38,200; credit Dividends $38,200.
C.)Debit Services Revenue $191.000; credit Income Summary $191,000.
D.)Debit Income Summary $191,000; credit Services Revenue $191.000.
E.)Debit Income Summary $76,400; credit Retained Earnings $76,400.
Which of the following is a comparative performance appraisal technique?
A. Mixed-standards scale
B. Simple ranking
C. Paired distribution
D. Forced comparison
E. Complex distribution
The following is a comparative performance appraisal technique that is simple ranking.
The option (B) is correct.
The simple ranking is a comparative performance appraisal strategy where workers are positioned from best to most terrible or the other way around founded on their presentation. It includes requesting workers in a straight position request without doling out unambiguous mathematical qualities or contrasting them in connection with one another. This strategy is direct and gives a reasonable differentiation between workers in light of their general presentation.
It provides a clear hierarchy of employee performance. In any case, it doesn't give definite data about unambiguous execution standards or separate execution levels inside each positioning.
Learn more about performance appraisal:
https://brainly.com/question/30563261
#SPJ4
a. Easywash Ltd. is in the business of providing portable wash bags for backpackers. It has seen no growth in the past several years and does not expect to increase its dividend in the future. The company just paid a dividend of $2.17 recently. If the required rate of return is 12%, what is the current share price? (2 marks) b. Jenny is considering buying the ordinary shares of Bike2 Ltd. which are trading at $40. The company expects to pay a dividend of $2.35 next year and dividends are expected to grow at a constant rate of 6%. Should Jenny buy the shares at $40 if her required rate of return is 11%? Why or why not? (3 marks) c. PicnicWorld expects to grow at a rate of 24% for the next 3 years and then settle to a constant growth rate of 6%. The most recent dividend paid by the company was $2.2. The required rate of return is 14%. What is the price of the share today? (4 marks)
a) the current share price of Easywash Ltd. is approximately $18.08. b) Jenny should consider buying the shares as they are undervalued according to her required rate of return. c) the price of the share today for PicnicWorld is approximately $7.93.
Answers tot the questionsa. To calculate the current share price of Easywash Ltd., we can use the dividend discount model (DDM).
Current share price = Dividend / (Required rate of return - Dividend growth rate)
Given:
Dividend = $2.17
Required rate of return = 12%
Dividend growth rate = 0% (as there is no expected growth)
Current share price = $2.17 / (0.12 - 0)
Current share price = $2.17 / 0.12
Current share price ≈ $18.08
Therefore, the current share price of Easywash Ltd. is approximately $18.08.
b. To determine whether Jenny should buy the shares of Bike2 Ltd., we need to compare the expected return from the stock with her required rate of return.
Expected dividend next year = $2.35
Dividend growth rate = 6%
Required rate of return = 11%
Using the Gordon growth model:
Expected share price = Expected dividend / (Required rate of return - Dividend growth rate)
Expected share price = $2.35 / (0.11 - 0.06)
Expected share price = $2.35 / 0.05
Expected share price = $47
Since the current share price is $40, which is lower than the expected share price of $47, Jenny should consider buying the shares as they are undervalued according to her required rate of return.
c. To calculate the price of the share today for PicnicWorld, we need to consider the different growth rates for the first 3 years and the constant growth rate afterward.
Most recent dividend = $2.2
Growth rate for the next 3 years = 24%
Constant growth rate afterward = 6%
Required rate of return = 14%
Using the two-stage dividend discount model:
Price of the share today = Dividend next year / (Required rate of return - Growth rate) + Present value of the constant growth period
Dividend next year = $2.2 * (1 + 24%) = $2.728
Present value of the constant growth period = $2.728 / (0.14 - 0.06) = $34.10
Price of the share today = $2.728 / (0.14 - 0.24) + $34.10
Price of the share today ≈ -$26.17 + $34.10
Price of the share today ≈ $7.93
Therefore, the price of the share today for PicnicWorld is approximately $7.93.
Learn more about share price at https://brainly.com/question/28143339
#SPJ4
Exercise 8-41 (Static) Prepare a Production Cost Report: FIFO Method (LO 8-2, 4, 5)
Lansing, Inc. provides the following information for one of its department’s operations for June (no new material is added in Department T).
WIP inventory—Department T
Beginning inventory (15,000 units, 60% complete with respect to Department T costs)
Transferred-in costs (from Department S) $ 116,000
Department T conversion costs 53,150
Current work (35,000 units started)
Prior department costs 280,000
Department T costs 209,050
The ending inventory has 5,000 units, which are 20 percent complete with respect to Department T costs and 100 percent complete for prior department costs.
Required:
Complete the production cost report using FIFO.
Exercise 8-41 (Static) Prepare a Production Cost Report: FIFO Method (LO 8-2, 4, 5)
Lansing, Inc. provides the following information for one of its department’s operations for June (no new material is added in Department T).
WIP inventory—Department T
Beginning inventory (15,000 units, 60% complete with respect to Department T costs)
Transferred-in costs (from Department S) $ 116,000
Department T conversion costs 53,150
Current work (35,000 units started)
Prior department costs 280,000
Department T costs 209,050
The ending inventory has 5,000 units, which are 20 percent complete with respect to Department T costs and 100 percent complete for prior department costs.
Required:
Complete the production cost report using FIFO.
Equivalent Units
Physical Units Prior Department Department T
Flow of units:
Units to be accounted for:
Beginning WIP inventory
Units started this period
Total units to account for
Units accounted for:
Completed and transferred out
From beginning WIP inventory
Prior department
Department T
Started and completed currently
Units in ending WIP inventory
Prior department
Department T
Total units accounted for
Total Prior Department Department T
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for
Cost per equivalent unit
Prior department
Department T
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP inventory
Current costs added to complete beginning WIP inventory
Prior department
Department T
Current costs of units started and completed:
Prior department
Department T
Total costs transferred out
Cost of ending WIP inventory
Prior department
Department T
Total costs accounted for
Total costs accounted for:$209,050.00
Equivalent Units Physical Units Prior Department Department T Flow of units:
Units to be accounted for:
Beginning WIP inventory 15,000
Transferred-in costs (from Department S)53,150
Units started this period 35,000
Total units to account for 103,150
Units accounted for:
Completed and transferred out 67,50015,00052,500
From beginning WIP inventory 5,1001,9003,200
Prior department67,5000
Current period costs 116,00093,050
Total costs to be accounted for 209,050
Cost per equivalent unit:
Prior department$1.11
Department T$1.61
Costs accounted for:
Costs assigned to units transferred out: $1.11$1.61
Costs from beginning
WIP inventory $5,655.00 $3,333.00
Current costs added to complete beginning
WIP inventory$0$3,755.50
Prior department$75,285.00
Department T$84,525.00
Current costs of units started and completed:
Prior department$93,285.00
Department T$119,602.50
Total costs transferred out:$159,810.00
Cost of ending WIP inventory:
Prior department$1,047.00
Department T$8,045.0
Total costs accounted for:$209,050.00
To know more about inventory visit:
https://brainly.com/question/31146932
#SPJ11
Based on the agreement, business has received money $3,000 and the services will be offered next month.
A. Dr. Cash 3,000; Cr.unearned revenue 3,000
B. Dr. Accounts Receivable 3,000; Cr. Sales 3,000
C. Dr. Customer 3,000; Cr. Sales 3,000
D. No entry
Based on the agreement, business has received money $3,000 and the services will be offered next month Dr. Cash 3,000; Cr. Unearned Revenue 3,000. The correct option is A.
The Cash account should be debited and the Unearned Revenue account should be credited in the example scenario. This entry shows that payment was received from the client before the services were rendered. As cash is received, we increase the asset account by debiting Cash. On the other hand, we acknowledge the liability resulting from receiving payment for services that haven't yet been provided by crediting the Unearned Revenue account.
The obligation to provide the services in the future is represented by unearned revenue. The timing of revenue recognition is accurately reflected in the financial statements thanks to this entry. Unearned Revenue will be reduced once the services are rendered in the following month and revenue will then be recognized. The correct option is A.
Learn more about Cash account at:
brainly.com/question/18644775
#SPJ4
Under the dollar-value LIFO method, increases and decreases in an inventory pool are determined and measured in terms of: A.total dollar value. B.dollar value per unit. C.unit layers.
D. physical quantity.
Under the dollar-value LIFO method, increases and decreases in an inventory pool are determined and measured in terms of physical quantity. Option D is the correct answer.
According to the Dollar-value LIFO (last-in-first-out) paradigm is an accounting technique for inventory. This method is known as dollar-value LIFO, which does not utilize inventory units for any of the statistics. Compared to other accounting practices like first-in, first-out (FIFO), it offers a different perspective on the balance sheet. Option D is the correct answer.
Companies can save time and money by using the dollar-value LIFO approach instead of figuring up specific pricing layers for each inventory item. For every pool of inventory, they can instead compute layers. But eventually, this ceases to be economical, therefore it's crucial to make sure that pools aren't being built pointlessly.
Learn more about LIFO here:
https://brainly.com/question/15344569
#SPJ4
9. When signing a listing agreement, I cell informs you
that he does not want to provide the seller's property disclosure
form. Your best course of action is to
a. complete a seller's property disclos
When signing a listing agreement, a seller is obligated to disclose all the information regarding the property to the agent and the buyer. In the real estate industry, the seller's property disclosure form is a critical document that provides the buyer with information about the property.
When a seller refuses to provide this document, the agent must handle the situation professionally to avoid any legal repercussions.The best course of action when a seller informs you that they do not want to provide the seller's property disclosure form is to document this communication and recommend that the seller completes the seller's property disclosure form. If the seller continues to refuse to provide the document, the agent must ensure that they have proof that they recommended the document to the seller and that they refused to provide it.
It is essential to note that in some states, it is mandatory to provide the seller's property disclosure form to the buyer before they sign a contract.The seller's property disclosure form is important as it provides the buyer with information about the property's condition, previous repairs, and any other necessary information. The seller should provide as much information as possible as it can impact the buyer's decision. If the agent does not handle the situation professionally,
it can result in legal action from the buyer, and the seller may be held liable for any misrepresentation or fraudulent activity. Therefore, it is critical to ensure that the seller provides all the necessary information about the property and to document any communication between the agent and the seller.
To know more about industry visit :
https://brainly.com/question/32605591
#SPJ11
Gibson Company acquires a new machine (seven year property) on February 19, 2021, at a cost of $2,200,000. Gibson makes no elections. Determine the total cost recovery deductions (rounded). related to the machine for 2021.
a. $550,000
b. $314,380
c. $2,200,000
d. None of the answers are correct
e. $0
The total cost recovery deductions (rounded) related to the machine for 2021 is $314,380.
According to the information provided in the question, Gibson Company acquires a new machine (seven year property) on February 19, 2021, at a cost of $2,200,000. Gibson makes no elections.In this case, as Gibson Company makes no elections, the asset will be depreciated using Modified Accelerated Cost Recovery System (MACRS) using the 7-year recovery period.MACRS depreciation method is an accelerated method used to depreciate assets placed in service after 1986. Under the MACRS system, assets are assigned a class life, which determines the number of years over which the property can be depreciated. The below table shows the recovery period of 7-year property using MACRS depreciation method: Thus, according to the MACRS depreciation method, the total cost recovery deductions related to the machine for 2021 will be as follows: Depreciation for the 1st year = (2,200,000 x 14.29%) = $314,380Therefore, the total cost recovery deductions (rounded) related to the machine for 2021 will be $314,380.
Hence, the total cost recovery deductions (rounded) related to the machine for 2021 will be $314,380.
To know more about cost recovery deductions visit:
brainly.com/question/15102991
#SPJ11
Johnson wants to sell his farm to Davis for $225.000. Johnson tells Davis that he believes the value the farm is far more than that, and it will only go up, way up. Relying upon these statements, Davis buys the farm from Johnson for $225,000. However, Davis’s cousin Bart, who is a real estate expert, told Davis that he overpaid for the farm. On discovering this, Davis decided to sue Johnson for fraud in the inducement.
A) Based on these facts, does Davis have a cause of action for fraud in the inducement? Please discuss all relevant issues and please be specific.
B) Assume that Davis won the lawsuit. After losing in court, Johnson ran out of money and, consequently, became very depressed. Subsequently, Johnson decided to become a cyclist in hope that cycling could help him turn his life around. Fairly recently, Johnson participated in a bicycle race conducted by the US Cycling Federation. Unfortunately, a car hit Johnson during the race. He claims that employees of the Federation improperly allowed the car onto the course, as the car "came out of nowhere." The Federation claims that it cannot be held liable to Johnson because Johnson signed a release exculpating the Federation from responsibility for any personal injury resulting from his participation in the race. Based on these facts, who wins and why? Please discuss all relevant issues.
C) Johnson was also the principal shareholder in Matthew Corporation along with Wilson. The corporation was located in the city of Jonesville, Wisconsin. This corporation was engaged in the business of manufacturing paper novelties, which were sold over a wide area in the Midwest. The corporation was also in the business of binding books. Johnson decided he did not want to deal with people anymore (he even printed T- Shirts "do I look like peoples person"), so he purchased Wilson's shares of the Matthew Corporation. In consideration thereof, Wilson agreed that for a period of two years he would not (a) manufacture or sell in Wisconsin and Illinois any paper novelties of any kind that would compete with those sold by the Matthew Corporation or (b) engage in the bookbinding business in the city of Jonesville. Wilson is now regretting signing this agreement, and is asking you to make an argument that the non-compete agreement should not be enforceable. What argument(s) could you make in Wilson’s favor?
A) Yes, Davis has a cause of action for fraud in the inducement.
This is because Johnson falsely stated that he believed the farm was worth more than the selling price and that its value would increase in the future. Johnson had no reason to believe this, and it was a statement of opinion and not fact, but Davis relied on it in purchasing the farm for $225,000. This amounts to fraudulent inducement.
B) The Federation would win in this case. Johnson signed a release exculpating the Federation from responsibility for any personal injury resulting from his participation in the race. This release would be considered a valid defense against any claims that Johnson might make against the Federation for his injuries. By signing the release, Johnson waived any right he might have had to hold the Federation liable for his injuries.
C) The non-compete agreement may not be enforceable, and Wilson could argue that the agreement is too broad in scope and duration. Two years is a relatively long period, and Wilson could argue that this could create an undue hardship on him. Additionally, the geographic limitation of Wisconsin and Illinois could be seen as overly broad, especially since Matthew Corporation sold its paper novelties over a wide area in the Midwest. Wilson could argue that he should be allowed to compete in other states or regions where the corporation did not have a significant presence.
To know more about corporation visit:
https://brainly.com/question/30029715
#SPJ11
Which type of cycle is long-term in nature? Cyclical Secular Bull/bear cycle A mutual fund has the following series of cash flows and recorded asset values. Cash Flow Period Buy one share at $65 per share Stock pays a dividend of $1 per share Buy one more share at $70 Stock pays a dividend of $1.15 per share Buy two more shares at $75 Stock pays a dividend of $1.25 per share 3 Sell entire position at $78 per share What is the money-weighted return of this mutual fund over this three-year window of time? State your answer as a percentage with two decimal places, not as a number in decimal form (i.e. 13.21 not .1321). O 1 1 2 2 3
The type of cycle that is long-term in nature is the secular cycle.
A secular cycle refers to a prolonged period of time, typically lasting several years or even decades, during which there is a consistent and sustained trend in the market or economy. It is characterized by long-term trends, such as economic growth, inflation, or stock market performance, that persist over an extended period and are not easily influenced by short-term fluctuations or temporary market conditions.
On the other hand, cyclical cycles are shorter-term fluctuations that occur within the broader secular trend. These cycles are characterized by periods of expansion and contraction, typically lasting a few months to a few years, and are influenced by factors such as business cycles, interest rates, and market sentiment.
As for the second part of the question regarding the money-weighted return of the mutual fund over a three-year window, we need to calculate the rate of return based on the cash flows and asset values provided.
The cash flows indicate the purchase of shares at different prices and the dividends received. We can calculate the value of the investment at the end of each period by considering the cash flows and the change in asset value.
Here's the calculation:
Period 1: Investment = 1 share at $65 per share = $65
Period 2: Investment = 2 shares at $70 per share = $140
Period 3: Investment = 4 shares at $75 per share = $300
Period 4: Sell entire position at $78 per share = $312
To calculate the money-weighted return, we need to find the rate of return that equates the initial investment ($65) with the final value ($312) over the three-year period.
Using the formula for compound annual growth rate (CAGR), we can calculate the rate of return:
CAGR = [(Ending Value / Beginning Value)^(1 / Number of Years)] - 1
CAGR = [(312 / 65)^(1 / 3)] - 1
CAGR ≈ 0.3305
Therefore, the money-weighted return of this mutual fund over the three-year window is approximately 33.05%.
To know more about Return visit-
brainly.com/question/32133392
#SPJ11
in the case study from chapter 8, what was raphael's total moving expense deduction? $1,500 $2,195 $3,662 $3,697
The raphael's total moving expense deduction is $3,697 (option d).
Moving expense deductions are offered to those who move to a new location to begin a new job. If the new job is at least 50 miles further than the old job, taxpayers may be eligible for a moving expense deduction. The IRS considers the moving expenses that qualify for the deduction include: Transportation and storage of household items. Packing and shipping fees.
Travel costs between the new and old homes, including lodging but not meals. The case study from chapter 8:Raphael has accepted a new position with a law firm in another state and wants to claim the moving expense deduction. His total moving expenses were $4,520. His adjusted gross income is $54,870. Raphael’s new place of work is located 500 miles from his former residence. Raphael’s employer reimbursed him $823 for his moving expenses. Raphael’s total moving expense deduction would be $3,697. Therefore, the correct option is (d) $3,697.
For more about deduction:
https://brainly.com/question/30157208
#SPJ11
A retail chain sells TVs for $950. What is the price difference for consumers in Halifax, Nova Scotia and Edmonton, Alberta after applicable taxes?
[Hint: The HST of 15% is applied in Nova Scotia, whereas only the GST of 5% is applied in Alberta, no PST.]
Select one:
a. No difference
b. $142.5
c. $47.5
d. $95
The price difference for consumers in Halifax, Nova Scotia, and Edmonton, Alberta after applicable taxes is $95.
To calculate the price difference for consumers in Halifax, Nova Scotia and Edmonton, Alberta after taxes, we need to consider the different tax rates applied in each province.
In Nova Scotia, the Harmonized Sales Tax (HST) of 15% is applied, while in Alberta, only the Goods and Services Tax (GST) of 5% is applied, without a Provincial Sales Tax (PST).
Let's calculate the price difference:
Price of the TV: $950
In Nova Scotia:
Tax rate: 15%
Tax amount: $950 * 0.15 = $142.50
In Edmonton, Alberta:
Tax rate: 5%
Tax amount: $950 * 0.05 = $47.50
To find the price difference, we subtract the tax amount in Alberta from the tax amount in Nova Scotia:
Price difference = Tax amount in Nova Scotia - Tax amount in Alberta
Price difference = $142.50 - $47.50
Price difference = $95
Therefore, the price difference for consumers in Halifax, Nova Scotia, and Edmonton, Alberta after applicable taxes is $95.
The correct answer is d. $95.
For such more questions on Price Difference
https://brainly.com/question/25565797
#SPJ8
Which of the following defines the store of value function of money?
a. A common measurement of the relative value of different goods and services.
b. The ability of money to hold value over time.
c. That the materials used to manufacture money are of medium grade or quality, so that people will not hoard money for its commodity value.
d. That money is widely accepted in exchange for goods and services.
The following defines the store of value function of money: the ability of money to hold value over time. The correct option is B
This means that money can be used to store wealth, as it retains its value even after some time has passed. The store of value function is an important aspect of money as it enables individuals to save money for the future by investing or simply holding on to it.
It is important to note that inflation can erode the value of money over time, reducing its store of value function. Money has three main functions: medium of exchange, unit of account, and store of value. Medium of exchange refers to the ability of money to be used as a means of payment in the exchange of goods and services.
Unit of account is the common measurement of the relative value of different goods and services. Store of value is the ability of money to hold value over time. Finally, the quality of materials used in manufacturing money is not relevant to the store of value function of money. Money is widely accepted in exchange for goods and services.
To know more about money refer here:
https://brainly.com/question/3283904#
#SPJ11
A firm which is self-constructing a new factory has correctly calculated Avoidable Interest for the year of $100,000. The entire amount of the Weighted Average Accumulated Expenditure was covered by a
The entire amount of the WAAE was covered by the firm, which means that the firm did not need to borrow any funds to finance the construction of the new factory. As a result, the avoidable interest for the year is zero. If a firm covers the entire amount of the WAAE, there would be no avoidable interest.
Weighted average accumulated expenditure refers to the average of all the expenditures associated with the construction or purchase of a capital asset. In other words, it is the average of all the capital expenditures incurred by a firm on a given asset over a certain period of time. The amount of interest expense that a firm can avoid during the construction of a capital asset is known as avoidable interest. In other words, it is the amount of interest that the firm can save by avoiding the need to borrow funds to pay for the capital asset. Avoidable interest is calculated by multiplying the actual amount of interest paid on borrowings during the construction period by the Weighted Average Accumulated Expenditure (WAAE) ratio. The WAAE ratio is calculated by dividing the total capital expenditure incurred during the construction period by the total funds borrowed to finance the project. The entire amount of the WAAE was covered by the firm, which means that the firm did not need to borrow any funds to finance the construction of the new factory. As a result, the avoidable interest for the year is zero. This is because the firm did not incur any interest expenses on any borrowings during the construction period, and as such, there are no interest expenses to be avoided.In summary, if a firm covers the entire amount of the WAAE, there would be no avoidable interest.For more such questions on avoidable interest , click on:
https://brainly.com/question/29630412
#SPJ11
Clara's utility function is Ux, y)=(x + 5)(y+6). The marginal utility for good x is MU_xy+6, Marginal utility for good y is MU_y-x+5. If we put x on the x-axis and y on the y-axis, her marginal rate o
When consuming 10 units of good x, Clara must consume 81 units of good y to keep her MRS constant at -5. This tells us how much Clara is willing to trade one unit of good x for good y while maintaining the same level of utility.
To find how many units of good y Clara must consume when she is already consuming 10 units of good x, we first need to calculate her marginal rate of substitution (MRS).
According to the given information, Clara's utility function is U(x,y)=(x+5)(y+6). The marginal utility of good x is MU_x=y+6, and the marginal utility of good y is MU_y=x+5.
To find the MRS, we need to take the ratio of these two marginal utilities:
MRS = MU_x / MU_y
Substituting the given marginal utilities, we get:
MRS = (y + 6) / (x + 5)
Since we know that Clara is consuming 10 units of good x, we can substitute x = 10 in the above equation:
MRS = (y + 6) / 15
We are also given that Clara's MRS is -5. So we can set the above equation equal to -5 and solve for y:
(y + 6) / 15 = -5
y + 6 = -75
y = -81
Since consumption cannot be negative, we reject the negative solution and conclude that Clara must consume 81 units of good y when she is already consuming 10 units of good x, in order to maintain a marginal rate of substitution of -5.
Note: The complete question is:
Clara's utility function is (x.y)= (x + 5) * 0y + 6 ) The marginal utility for good x is MU_x-y+6, Marginal utility for good y is \ y = x + 5 If we put x on the x-axis and y on the y-axis, her marginal rate of substitution is-5 and she is consuming 10 units of good X. how many units of good y must she be consuming?
for more such questions on utility
https://brainly.com/question/2435851
#SPJ11
Which of the following statements is correct? O A. Cash receipts is the total cash outflow in a given month O B. Cash receipts are always greater than cash expenses. O C. The cash receipts and cash expenses are an important part of the cash budget O D. All are correct O E. All are incorrect
The correct statement among the given options is, "The cash receipts and cash expenses are an important part of the cash budget".
Cash receipts and cash expenses are a significant part of the cash budget. The purpose of the cash budget is to estimate cash receipts and cash expenses to determine the organization's future cash position. It can be used to predict cash deficits or surpluses in the future and to plan investments, borrowing, or cost-cutting initiatives accordingly.
Cash receipts: Cash receipts refer to the total amount of cash received by a company, either in the form of cash sales, collections from customers, or loans. The cash inflows are recorded in a cash receipts journal. These receipts help in calculating the cash flow of the company. It also helps to forecast the future cash position of the company.
Cash expenses: Cash expenses refer to the total amount of cash paid by a company, such as cash payments to suppliers, salary payments, rent payments, or any other expense.
Cash expenses are recorded in a cash disbursements journal. It helps in calculating the net cash flow of the company.
Learn more about receipts visit:
brainly.com/question/31941806
#SPJ11
Country Kitchen has a cost of equity of 12.6%, a pretax cost of debt of 5.7%, and the tax rate is 21%. If the company's WACC is 9.19%, what is its debt-equity ratio?
The value of the debt-equity ratio of Country Kitchen is 0.82.
Debt-equity ratio can be calculated using the formula below;
Debt-equity ratio = Debt / Equity
Debt/Equity can also be expressed as the weight of debt (D/(D+E)) or the weight of equity (E/(D+E)).
Cost of Equity: 12.6%
Cost of Debt: 5.7%
Tax Rate: 21%
WACC: 9.19%
To calculate the debt-equity ratio, we have to find the debt ratio first. Since the WACC is the weighted average cost of capital, we can use it to find the proportion of debt and equity in the company's capital structure.
The formula for WACC is;
WACC = E/V x Re + D/V x Rd x (1-Tc)
Where, E = Equity
V = Total Capital (D + E)
Re = Cost of Equity
D = Debt
Rd = Cost of Debt
Tc = Corporate Tax Rate
We know the values of Re, Rd, and Tc and also the value of WACC which we will use to find the proportion of debt and equity in the company's capital structure.
Substituting the given values;
9.19% = E/V x 12.6% + D/V x 5.7% x (1 - 21%)E/V + D/V = 1
Substituting E/V = 1 - D/V in the above equation;1 - D/V + D/V = 1
D/V = 0.4516
The debt-equity ratio can be calculated by dividing debt by equity;
Debt/Equity = 0.4516/0.5484 = 0.8249 ≈ 0.82
Learn more about WACC at:
https://brainly.com/question/32569372
#SPJ11
On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Required: Assuming the market interest rate on the issue date is 8%, the bonds will issue at $559,229. 1. Complete the first three rows of an amortization schedule.
The first three rows of the amortization schedule for White Water's bonds are as follows:
Date Interest Amortization Carrying Value
January 1, 2021, $21,000 $1,771 $557,458
June 30, 2021, $21,000 $1,771 $555,687
December 31, 2021, $21,000 $1,771 $553,916
The interest expense is calculated by multiplying the bond's face value by the bond's interest rate and dividing it by two (since the interest is paid semiannually). The amortization is calculated by multiplying the carrying value of the bond by the effective interest rate and dividing it by two. The carrying value is the amount of money that the company owes on the bond, after taking into account the interest expense and the amortization.
The effective interest rate is the interest rate that the company actually pays on the bond, after taking into account the discount or premium on the bond. The discount or premium is the difference between the bond's face value and the amount that the company actually pays for the bond. In this case, the market interest rate is 8%, which is higher than the bond's interest rate of 7%. This means that the company is effectively paying a higher interest rate on the bond than the bond's stated interest rate.
The amortization schedule shows how the carrying value of the bond decreases over time. As the carrying value decreases, the amount of interest expense also decreases. This is because the interest expense is calculated as a percentage of the carrying value. The amortization schedule is a useful tool for understanding the impact of bonds on a company's financial statements. It can be used to calculate the company's interest expense, the carrying value of the bond, and the amount of money that the company will owe on the bond at maturity.
Learn more about percentages here:- brainly.com/question/32197511
#SPJ11
Question 3 (4 points) Let country A's price level be 100. Let country B's price level be 110. the GDP of country A is 105,000 A-dollars and the GDP of country B is 100,000 B-dollars. The exchange rate between the two countries is 1.45 A-dollars per B-dollar. What is the GDP of country A, expressed in PPP, using country B as a reference country? Your Answer: Answer
The GDP of country A, expressed in PPP using country B as a reference, is 115,500 A-dollars.
To calculate the GDP of country A, expressed in PPP (Purchasing Power Parity), using country B as a reference, we need to adjust for the price level difference between the two countries.
The formula for calculating GDP in PPP is:
GDP PPP = GDP nominal x (Price level reference country / Price level country)
Given the information provided:
GDP nominal of country A = 105,000 A-dollars
Price level of country A = 100
Price level of country B = 110
Using the formula, we can calculate the GDP of country A in PPP, using country B as a reference:
GDP PPP = 105,000 A-dollars x (110 / 100)
GDP PPP = 105,000 A-dollars x 1.1
GDP PPP = 115,500 A-dollars
Therefore, the GDP of country A, expressed in PPP using country B as a reference, is 115,500 A-dollars.
To know more about GDP follow the link:
https://brainly.com/question/30504843
#SPJ4
The outbreak of Covid-19 at the beginning of 2020 has brought historic impact and change to the world order and international economic operation. With the global spread of the epidemic and wave by wave aggravation, the communication activities between different countries and regions at all levels have been weakened or even blocked. As an important link to maintain the circulation of goods and the operation of commercial activities in the international market, the logistics industry has become an important link, It must bear the brunt of a great impact. Considering its importance in the international trade system and the operation of the international market, the impact of this impact has a series of consequences. Therefore, based on the impact of the epidemic and the status of the international logistics industry in the international economic order, please discuss and analyze the epidemic's affect on international logistics and transnational business models? (You can express your opinions on specific fields under this topic, such as your hometown, a certain enterprise you are familiar with and your personal life, etc) The structure of the paper should include but not limited to the following parts: 1. Objective description of related business cases, clear argument or existing problems 2. Logical analysis or demonstration of cases and opinions
The outbreak of Covid-19 at the beginning of 2020 has brought historic impact and change to the world order and international economic operation. With the global spread of the epidemic and wave by wave aggravation, the communication activities between different countries and regions at all levels have been weakened or even blocked.
As an important link to maintain the circulation of goods and the operation of commercial activities in the international market, the logistics industry has become an important link, It must bear the brunt of a great impact. Considering its importance in the international trade system and the operation of the international market, the impact of this impact has a series of consequences. Therefore, based on the impact of the epidemic and the status of the international logistics industry in the international economic order, please discuss and analyze the epidemic's affect on international logistics and transnational business models.
Objective description of related business cases, clear argument or existing problems The impact of the epidemic on international logistics and transnational business models has a significant effect. Many sectors of the global economy are suffering from the spread of the virus. The logistics industry, which is responsible for transporting goods to different parts of the world, has been impacted as a result of the epidemic. The logistics industry is a crucial aspect of global trade and commerce, and any disruption to its functioning has severe repercussions. The epidemic has disrupted the supply chain of many businesses, and this has resulted in an increase in prices and a reduction in the quality of goods. In addition, many businesses that rely on the logistics industry have been forced to shut down their operations due to the epidemic.
To know more about economic visit :
https://brainly.com/question/14355320
#SPJ11
310.
The Pingleton Company has four departments in its factory with
two service departments, S1 and S2, and two production departments
Assembly and Packaging. The current costs of each department
are:
Direct costs can be attributed directly to the production of a product, while indirect costs are the costs incurred by a department in order to support production. The total cost of the Assembly department is $416,666.67 and the total cost of the Packaging department is $316,666.67.
The current costs of each department of Pingleton Company are given below:
Production Departments: Assembly Packaging Total direct costs $350,000, $250,000
Total indirect costs $70,000, $50,000
Service Departments: S1S2
Total indirect costs $125,000, $75,000
The direct costs can be attributed directly to the production of a product, while indirect costs are the costs incurred by a department in order to support production.
For the Assembly department: Direct costs = $350,000
Indirect costs allocated from S1 = ($125,000 / 3) = $41,666.67
Indirect costs allocated from S2 = ($75,000 / 3) = $25,000
Total costs of Assembly department = $350,000 + $41,666.67 + $25,000 = $416,666.67
For the Packaging department: Direct costs = $250,000Indirect costs allocated from S1 = ($125,000 / 3) = $41,666.67
Indirect costs allocated from S2 = ($75,000 / 3) = $25,000
Total costs of Packaging department = $250,000 + $41,666.67 + $25,000 = $316,666.67.
To know more about calculating current costs visit:
https://brainly.com/question/14835796
#SPJ11