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kramer
2 years ago
11

Rede Inc. manufactures a single product. Variable costing net operating income was $63,800 last year and its inventory decreased

by 300 units. Fixed manufacturing overhead cost was $4 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year
Business
1 answer:
irina1246 [14]2 years ago
4 0

Answer:

$62,600

Explanation:

Net operating income under variable costing = $63,800

Fixed manufacturing overhead cost deferred in inventory = (300 units multiplied by $4) =$1,200

the absorption costing net operating income last year= $63,800 - $1,200 = $62,600

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Enviro Company issues 14.00%, 10-year bonds with a par value of $500,000 and semiannual interest payments. On the issue date, th
ivann1987 [24]

Answer: a. $648,125

b. $551875

Explanation:

a. Using the implied selling price of 129 5/8. what are the issuer's cash proceeds from issuance of these bonds?

Bonds Face Value = $500,000

Cash Proceeds will then be:

= 129.625% × $500,000

= $648,125

b. What total amount of bond interest expense will be recognized over the life of these bonds?

20 payments of $35000 = $700000

Pee value at maturity = $500000

Total repaid = $1200000

Less: Amount borrowed = $648125

Total bond Interest expense = $551875

7 0
2 years ago
Wright Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,000 units. It is estimated
gregori [183]

Answer:

$30,000

Explanation:

In this question, the matching account principle is used which means the total revenue is matched with the total expenses in a given year.

The computation of the warranty expense is shown below:

= Number of selling units × average unit sold per unit

= 2,000 unit × $15 per unit

= $30,000

The whole amount $30,000 should be recorded as warranty expense

5 0
2 years ago
An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are giv
V125BC [204]

Answer:

a. real interest rate is 0.217 or 21.7%.

b. saving = 134 , investment is 332 ,  consumption is 3666.

Explanation:

a) Y = Cd + Id + Gd

Where Y= output

Cd= consumption

Id= Investment purchases

Gd=Government purchases

Y= (3600 - 2000r + 0.10Y) + (1200 - 4000r) + 1000

Y=5800-6000r+0.10Y

0.9Y=5800-6000r

At full employment Y=5000

Putting the value of Y in the above equation

0.9*5000=5800-6000r

5800-4500=6000r

r=0.217

Therefore real interest rate is 0.217 or 21.7%.

(b) Sd = Y - Cd - G

where Sd is national saving

Sd = Y - (3600 - 2000r + 0.1Y) - 1200

Sd = 5000-(3600 - 2000*0.217 + 0.1*5000) - 1200 =5000-3600+434-500-1200 = 134

Therefore, saving = 134

Id= 1200-4000*0.217 =332

Therefore, investment is 332

Cd= 3600-2000r+0.10Y=3600-434+500=3666

Therefore, consumption is 3666.

5 0
2 years ago
Differential Analysis for a Lease or Buy Decision Sloan Corporation is considering new equipment. The equipment can be purchased
Arlecino [84]

Answer:

Alternative 2 (purchase equipment) should be selected because it reduces costs by $10,400.

Explanation:

Alternative 1 (lease):

less price per year $30,000 x 5 years = $150,000

Alternative 2 (purchase):

initial investment = $125,500 + $1,600 = $127,100

maintenance cost per year = $2,500 x 5 years = $12,500

<h2>                   Differential Analysis</h2>

                                              alternative 1      alternative 2     differential

                                              lease                 purchase          effect

Revenues                             $0                      $0                    $0

Costs:    

Purchase price                     $0                -$125,500         -$125,000

Freight and installation      $0                    -$1,600              -$1,600  

Repair and maintenance          $0                   -$12,500           -$12,500

(5 years)    

Lease                                    -$150,000                 $0              $150,000

(5 years)    

Income / loss                       -$150,000           -$139,600           <u>$10,400</u>

Alternative 2 (purchase equipment) should be selected because it reduces costs by $10,400.

4 0
2 years ago
A document that totals what the customer owes is called _____.
AnnZ [28]
Your answer is
<span>B. an invoice</span>
6 0
2 years ago
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