A. Instead of a tornado’s striking Hardwoods’ land, the state in which Hardwoods operates passes a law making it illegal for any lumber
<span>companies to cut down trees for the purposes of selling their wood. This environmental measure causes Hardwoods to go out of business.</span>
Answer:
$ 460,000.00
Explanation:
The break-even point==fixed costs/contribution margin
With purchase of a new production machine,total fixed costs would increase by $11,400
new total fixed costs=$260,000+$11,400=$271,400
contribution margin=sale price per unit-variable cost per unit
sale price is $50.00
variable cost=$24.00-$3.50=$20.50
new contribution margin=$50.00-$20.50=$29.50
New break-even point in unit of output=$271,400/$29.50=9,200 units
new break-even point in dollars=9200
*$50=$ 460,000.00
Answer:
B. Manufacturing overhead was overapplied by $20,000; Cost of goods sold after closing the manufacturing overhead account is $431,000.
Explanation:
Manufacturing overhead refers to the factors or conditions that keeps a facotry running. These include electricity, deprecaition on factory, etc.
In the case of the queetion above, the manufacturing overhead has been over applied by $20,000 (i.e: $73,000 - $53,000). This over application of the manufacturing overhead has also affected the cost of goods sold after closing out the manufacturing overhead account
Since the overapplied amount is $20,000, we deduct the overapplied amount from the cost of sales ($471,000) to get the actual costs of goods sold after closing out the manufacturing overhead account.
We then have ($451,000 - $20,000) = $431,000.
Therefore, the cost of goods sold after closing the manufacturing overhead account is $431,000.
Cheers.
Answer: 2.5186 percent
Explanation:
First you have to understand that the payment includes Payment Interst plus Debt Payment and that the Payment Balance is the Loan Amount minus the Debt Payment; with this information you calculate the Loan Amount that is 260,500.00 and calculate the rate per month (use the interest debt / Loan Amount) which results in 0.2075 percent (TEM). To calculate the annual interest rate you use the formula to convert to TEA which is ((1+TEM)^12)-1).
Answer:
Allowances
Debit Credit
$426,000
$ 85,000
$106,000
$405,000
Bad Debt
Debit - Credit
$85,000
Explanation:
Using T-Accounts you can see that the missing value in the Net Allowances are $106,000 that corresponds to the write-off accounts during the year.
The allowance begin the year with $426,000 then add 85 a bad expenses and finish the year with a balance of $405,000, so in the middle is the value of $106,000 , as a Debit value which means that the company write off that amount as uncollectible credits.
