The company used straight line depreciation based on number of units produced. This can be shown as follows:
Cost = $100,000
Life = 5 years or 18,000 units
Salvage value = $10,000
By straight line method;
Depreciation cost per unit = (100,000-10,000)/18,000 = $5
After producing 4,400 units, depreciation expense = 4,400*5 = $22,000.
Answer:
3. one case of 24 sodas @ $ 18.50
Explanation:
The question requires that the hosts need to have enough to have two sodas each. The number of guests being 10, the requirement is to have 20 sodas.
Now comparing the various pack sizes available:
1. 20 sodas $ 1.50 per bottle, Total cost $ 30, per serving cost $1.50
2. 4 6 packs @ $ 5 each. Total cost $20, Per serving cost $0.83
3. 24 soda case @ $18.5. Total cost $ 18.50, Per Serving costs $ 0.77
4, 2 x 24 soda cases @ 18.50. Total Cost $ 37.00 Per serving costs $ 0.77
The per serving costs are the same in 3 & 4 above, however, since the requirement is to have 20 sodas and the overall costs as well as the per serving costs is the best in option 3, this is the preferred option.
Answer:
Decrease by $1
Explanation:
Given:
Old data:
Q0 = 2,000 units
P0 = $20
Total revenue before change = 2,000 x $20 = $40,000
After change in Price.
Q1 = 2,100 units
P1 = $19
Total revenue After change = 2,100 x $19 = $39,900
Computation of Marginal Revenue:
Marginal Revenue = (P1 - P0) / (Q1 - Q0)
= ($39,900 - $40,000) / (2,100 - 2,000)
= -100 / 100
= $(-1)
Marginal revenue will decrease by $1
Answer:
It is cheaper to buy the seats.
Explanation:
Giving the following information:
The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8.00 and $9.00, respectively. Normal production is 50,000 bicycles per year. A supplier offers to make the bicycle seats for $21 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be absorbed by other products.
Make in house= [8 + 9 + (9*0.6)]*50,000= $1,120,000
Buy= 21*50,000= $1,050,000
It is cheaper to buy the seats.
Answer:
Find below complete question:
Janus Coat Company purchased a delivery truck on June 1 for $30,000, paying $10,000 cash and signing a 6%, 2-month note for the remaining balance. The truck is expected to depreciate $6,000 each year. Janus Coat Company prepares monthly financial statements. Instructions:
(a) Prepare the general journal entry to record the acquisition of the delivery truck on June 1st. (b) Prepare any adjusting journal entries that should be made on June 30th. (c) Show how the delivery truck will be reflected on Janus Coat Company's balance sheet on June 30th.
Dr Truck $30,000
Cr Cash $10,000
Cr notes payable $20,000
Dr depreciation expense $500
Cr accumulated depreciation $500
Dr interest expense $100
Cr interest payable $100
Balance sheet extract on 30th June"
Delivery truck $30,000
Accumulated depreciation ($500)
Net book value $29,500
Explanation:
The journal entry to record the purchase of the truck would have $30,000 debited to truck account while cash and notes payable are credited with $10,000 and $20,000 respectively.
On 30 June depreciation expense =$6000/12=$500
Interest of one month on the note payable on 30th June=$20,000*6%*1/12=$100
