Answer:
Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as Product costs and expenses when the goods are sold, Option D.
Explanation:
Indirect costs are also manufacturing overheads which cannot be directly put on the product but they have to be allocated in some way. So, these are treated as 'product costs' and 'expenses' when the goods are sold. They are not period costs as per Option A and option C. Option B which says that it is product costs when incurred, which is also incorrect.
Examples of indirect costs can be accounting and legal expenses, rent, telephone expenses, salaries of administrative.
Direct costs includes the costs of direct 'labor', materials and commissions.
Answer:
c. Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.
Explanation:
The journal entry is shown below:
Cash $70,000 (5,000 shares × $14)
To Common stock $50,000 (5,000 shares × $10)
To Additional Paid in capital in excess of par value - Common stock $20,000 (5,000 shares × $4)
(Being the issuance of the common stock is recorded)
For recording this we debited the cash as it increased assets and at the same time it also increased the overall stockholder equity so common stock and the additional paid in capital for common stock is credited
I recently had this assignment and here are a couple of was to do this:
1st way (which is correct according to my grading):
= # of Nights*Hotel rate*(1+hotel tax rate)
2nd way (I got counted wrong for this one on my assignment):
=(hotel rate+(hotel rate*hotel tax rate))*Number of nights
Answer:
11.28%
Explanation:
Midwest fastener stock is expected to have a 16% booming economy
12% normal economy
-3% recession economy
The probability of an economic boom is 12%
The probability of a normal state is 80%
The probability of a recession is 8%
Therefore, the expected rate of return can be calculated as follows
= (return in booming economy×probability of boom economy)+(return in normal economy × probability of normal economy)+(return in recession economy×probability of recession economy)
= (16%+12%)+(12%+80%)+(-3%+8%)
= 192%+960%+(-24%)
= 192%+960%-24%
= 1,128%/100
= 11.28%
Hence the expected rate of return on the stock is 11.28%
