Answer:
The correct answer is C.
Explanation:
Giving the following information:
Costs associated with the alternatives are listed below.
Alternative X
Materials costs $ 41,000
Processing costs $ 45,000
Equipment rental $ 17,000
Occupancy costs $ 16,000
Alternative Y
Materials costs $ 59,000
Processing costs $ 45,000
Equipment rental $ 17,000
Occupancy costs $ 24,000
Only Material Costs are relevant because they vary whether you chose Alternative X or Y. Processing costs are the same in both options.
Answer:
Indirect Labour Cost, Direct Labour Cost
Explanation:
Direct Labour Cost
This is the type of cost incurred or wages paid to workers or employees that directly works on project. For example, laborer, foreman, painters, machine operators, delivery man etc. all belongs to this category. They are wages paid to the category of employees or workers who physically produce products.
Indirect Labour Cost
These are wages paid to those group of workers or employees that perform tasks that do not directly contribute to the production of goods or performance of services. For example, we have accountants, security guards, administrative officers, supervisors, inspectors and so on. It is also known as Overhead cost. They are not involved in the active part of conversion of raw materials into products.
Answer:
The value of this firm to shareholders is $70240
Explanation:
Using expected value approach, the value of the firm can be computed as :
(Optimistic value*its probability)+(pessimistic value*its probability)
optimistic value=$139000 and its probability is 68%=0.68
Pessimistic value=$121000 and its probability is 1-0.68=0.32
Expected value=($139000*0.68)+($121000*0.32)
=$133240
However, the value to shareholders is the expected value of the firm less debt of $63000
Equity value=$133240-$63000
=$70240
Answer:
A. DR Petty Cash 200; CR Cash 200
Explanation:
We are asked for the entry on June 1st to stablish the petty cash fund.
The data on June 30th is irrelevant for this question.
We will only work with the information of june 1st
The ptty cash, will be an asset account. To crease an asset account we will debit it.
On credit side, we need to show how is this asset generated. In this case, with another asset, cash. Cash will be credited to show that 200 cash from the main account has been moved into the petty fund
Answer:
57,500
Explanation:
Total required units:
= Expected unit sales + Desired ending finished goods unit
= 50,000 + (25% × 80,000)
= 50,000 + 20,000
= 70,000
Budgeted production for August would be:
= Total required units - Beginning finished goods unit
= 70,000 - (25% × 50,000)
= 70,000 - 12,500
= 57,500
Therefore, the budgeted production for August would be 57,500.