The Molding Department's equivalent units of production related to materials for April are 90 units.
To calculate the Molding Department's equivalent units of production related to materials for April, we need to consider the units that are in process and the units that have been completed and transferred to the Finishing Department.
Units in process as of April 1: 30 units (20% complete)
Units in process as of April 30: 20 units (40% complete)
Units completed and transferred: 76 units
To calculate the equivalent units of production, we need to determine the equivalent units for both the units in process and the completed units.
For the units in process as of April 1, the equivalent units of production related to materials would be:
30 units * 20% = 6 equivalent units
For the units in process as of April 30, the equivalent units of production related to materials would be:
20 units * 40% = 8 equivalent units
The completed units would contribute their full quantity as equivalent units, so the equivalent units for the completed and transferred units would be:
76 units * 100% = 76 equivalent units
To find the total equivalent units of production related to materials for April, we sum up the equivalent units from each category:
6 equivalent units (units in process as of April 1) + 8 equivalent units (units in process as of April 30) + 76 equivalent units (completed and transferred units) = 90 equivalent units.
Therefore, the equivalent units of production related to materials for the Molding Department in April amount to a total of 90 units.
You can learn more about production at
https://brainly.com/question/16755022
#SPJ11
On January 1, 2021, Atmos Energy purchased 28% of the outstanding voting common stock of Cabot for $300,400. The book value of the acquired shares was $275,900. The excess of cost over book value is attributable to a building on Cabot's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2021, Cabot reported net income of $126,000 and paid cash dividends of $25,050. What is the carrying value of Atmos's investment in Cabot at December 31, 2021? Multiple Choice $328,666. $323,766. $293,386. $300,400.
The carrying value of Atmos's investment in Cabot at December 31, 2021 is $258,106.
Given that Atmos Energy purchased 28% of the outstanding voting common stock of Cabot for $300,400.
The book value of the acquired shares was $275,900.
The excess of cost over book value is attributable to a building on Cabot's books that was undervalued and had a remaining useful life of five years.
Calculation:
Cost of the investment = $300,400
Book value of the investment = $275,900
Excess of cost over book value = $24,500
Cabot reported net income of $126,000 and paid cash dividends of $25,050.
Cabot’s net income attributable to 28% of its common shares = 0.28 × $126,000 = $35,280
Cabot's dividends received by Atmos Energy = 0.28 × $25,050 = $7,014
The carrying value of the investment in Cabot at December 31, 2021, will be:
Cost of the investment - (Dividend received + share in net income) = Carrying value of investment
$300,400 - ($7,014 + $35,280) = $258,106
Therefore, the carrying value of Atmos's investment in Cabot at December 31, 2021 is $258,106.
Hence, none of the options given is correct.
To know more about investment visit:
https://brainly.com/question/15105766
#SPJ11
Daring Dora holds 90% of her assets in high-technology stocks, earning 12%, and 10% in long-term government bonds, earning 6%. The expected return on her portfolio: A) is 6%. B) is 9%. C) is 11.4% D) is 12%. E) cannot be determined without knowing what the dollar value of her assets is
Daring Dora holds 90% of her assets in high-technology stocks, earning 12%, and 10% in long-term government bonds, earning 6%. She can calculate her expected return by taking a weighted average of the returns on the two investments.
Expected return on her portfolio can be calculated using a weighted average formula, which can be expressed as: Expected Return = (Weight of Investment A × Expected Return on Investment A) + (Weight of Investment B × Expected Return on Investment B) + … + (Weight of Investment N × Expected Return on Investment N).
In this scenario, we have two investments - high-technology stocks and long-term government bonds. High-technology stocks constitute 90% of her assets and yield a return of 12%.
Long-term government bonds make up 10% of her assets and yield a return of 6%. Therefore, we can calculate the expected return on Daring Dora’s portfolio as follows: Expected Return = (0.90 × 12%) + (0.10 × 6%).
Expected Return = 10.8% + 0.6%.
Expected Return = 11.4%.
Therefore, the expected return on her portfolio is 11.4%. So, the correct answer is option C.
To know more about government visit:
https://brainly.com/question/4160287
#SPJ11
Which of the following represents the NET effect of the closing journal entries for a company with a net loss?
Credit Capital Stock
Credit Retained Earnings.
Debit Retained earnings.
Debit Dividends
The net effect of the closing journal entries for a company with a net loss is a debit to Retained Earnings, reflecting the decrease in the company's earnings due to expenses exceeding revenues.
1. In a closing entry, the goal is to transfer the balances from temporary accounts (such as revenue and expense accounts) to permanent accounts (such as retained earnings).
2. A net loss indicates that the company's expenses exceed its revenues, resulting in a decrease in retained earnings.
3. To close the temporary accounts and reflect the net loss, we need to debit the Retained Earnings account.
4. This debit entry will reduce the balance in Retained Earnings, reflecting the net loss incurred by the company during the period.
For more such questions on revenues, click on:
https://brainly.com/question/25102079
#SPJ11
The activities of public welfare organizations require a large amount of funds, but excessive commercialization of public welfare organizations is criticized by many people. How do you think public welfare organizations should strike a balance between increasing income and excessive commercialization?
Public welfare organizations should strike a balance between increasing income and excessive commercialization by diversifying their funding sources, setting clear ethical standards, and being transparent about their financial practices.
This helps prevent dependence on any single source of funding and ensures that the organization is not driven solely by profit motives.Steps that can be taken to strike a balance between increasing income and excessive commercialization are:Diversify Funding Sources: Public welfare organizations should diversify their sources of funding so that they are not overly dependent on any single source. This could be done by seeking funding from individuals, corporations, foundations, and government entities.
Set Ethical Standards: Public welfare organizations should set clear ethical standards for themselves to ensure that they are not acting solely for the sake of profit. They should also adhere to these standards, so that they are held accountable for their actions.Be Transparent About Financial Practices: Public welfare organizations should be transparent about their financial practices, including their revenue sources and how they spend their funds. This helps build trust with donors and ensures that the organization is being responsible with the funds it receives. Additionally, organizations can adopt social entrepreneurship models to generate income, and utilize crowdfunding and sponsorships as an alternative to commercialization.
To know more about Public welfare visit :
https://brainly.com/question/29544798
#SPJ11
3) based on the life cycle of financial planning, when would be a good time to review andpossibly adjust an effective financial plan?a) a really effective financial plan doesn't need to be adjusted.b) when you get marriedc) when you have childrend) when the stock market goes upe) both b and c are correct answers.
Based on the life cycle of financial planning, when would be a good time to review and possibly adjust an effective financial plan is both B and C are correct answers The correct answer is E) both B and C are correct answers.
However, it is not advisable to never review and adjust an effective financial plan. As a result, it is best to review your financial plan on a regular basis to ensure that it is still relevant and effective. Here are some examples of significant life events that might necessitate a financial plan review: When you get married: When you get married, your financial obligations and goals may change.
You may have to combine your assets, modify your spending habits, and alter your savings targets to accommodate your spouse's income, debt, and financial goals. When you have children: When you have children, your financial obligations and goals change once again. You'll need to budget for education, healthcare, and childcare expenditures, as well as provide for your children's immediate and long-term needs.
When you retire: Retirement is a significant financial event that necessitates a thorough review of your retirement savings, Social Security benefits, and retirement income stream. You'll want to ensure that your retirement plan is well-structured and that you'll be able to support yourself throughout your golden years. Hence, E is the correct option.
You can learn more about life cycle at: brainly.com/question/14804328
#SPJ11
Which of the following describes a tax consequence on the disposal of depreciable property?
Multiple Choice
a. If the selling price exceeds the original cost, a recapture would be recognized.
b. If the selling price exceeds the original cost, a capital gain would be recognized.
c. If, at the end of the taxation year, all assets in a class have been disposed of, but a balance remains in the pool, the balance would continue to be deducted as CCA.
d. If, at the end of a fiscal year, the balance of the pool is negative, the balance would be deducted from business income.
A tax consequence on the disposal of depreciable property can be described as if the selling price exceeds the original cost, a recapture would be recognized. Therefore, option (a) is correct. When depreciable property is disposed of, it results in a tax consequence for the owner.
It's because of the way capital cost allowance (CCA) works in Canada. Depreciable property can be classified as either a Class 10 or Class 10.1 asset. Class 10 assets are items like furniture and fixtures, while Class 10.1 assets are computers and related equipment.A recapture would be recognized if the selling price exceeds the original cost. This implies that if the selling price of a depreciable property is greater than the original cost, the difference is known as the capital gain. The recapture component of a capital gain is the amount that was deducted as CCA.
To know more about Capital cost visit-
brainly.com/question/32788776
#SPJ11
A large regional movie theater has two profit centers (ticket sales and snack concessions) and one cost center (restrooms). The new accounting team has been tasked with setting up a responsibility accounting reporting framework for the theater. The theater has 16 auditoriums (ten of the auditoriums have 150 seats each; the other six auditoriums each have 400 seats) A large concessions area Two large restrooms Required Propose an expense allocation system for one of the following categories of expenses 1. Heating/air conditioning 2. Rent 3. Insurance 4. Wages paid to hourly employees (assume that all employees are "floaters" who share in all theater duties: selling and taking tickets: selling concessions: cleaning auditoriums and restrooms) in your solution, be sure to explain how your expenses will be allocated to the profit centers (ticket sales and snack concessions and the cost center (restrooms. The appropriate allocation base(s) are for you to decide Your solution should be about one paragraph long and does not need to contain any number
A large regional movie theater has two profit centers: ticket sales and snack concessions and one cost center that is restrooms. The new accounting team is assigned with the task of setting up a responsibility accounting reporting framework for the theater.
The theater has a large concessions area, two large restrooms, and 16 auditoriums, of which ten of the auditoriums have 150 seats each while the remaining six auditoriums each have 400 seats. The proposed expense allocation system will be rent. The following are the ways in which expenses will be allocated to profit centers (ticket sales and snack concessions) and cost centers (restrooms).The appropriate allocation base(s) are to be decided as follows:
Restrooms are the only cost center in the theater, hence all expenses related to restrooms will be allocated to the restrooms based on the allocation of restroom space compared to the theater's overall square footage. As there are two large restrooms, the allocation of expenses will be based on the total square footage of these two restrooms compared to the total square footage of the theater.
Allocation of expenses to ticket sales profit center: The rent expenses will be allocated to ticket sales based on the total square footage of the auditoriums that are used for ticket sales compared to the total square footage of the entire theater. This is because ticket sales are done in the auditoriums.
Allocation of expenses to snack concessions profit center: The rent expenses will be allocated to the snack concessions profit center based on the total square footage of the concessions area compared to the total square footage of the theater. This is because the snack concessions are sold in the concessions area.
For more about framework:
https://brainly.com/question/28266415
#SPJ11
Dr.
erica chan , Md owns EC health clinic , she prepares annual
financial statements and has a december 31 ,2020 year end
1) on October 1 2020, dr. chan prepared $6700
Here is the initial journal entry and the adjusting entry required on December 31, 2020:
Initial Journal EntryDate | Account | Debit | Credit
10/01/2020 | Prepaid Rent | 6,700 | Cash | 6,700
11/01/2020 | Prepaid Magazine Subscriptions | 348 | Cash | 348
12/01/2020 | Supplies | 3,300 | Cash | 3,300
Adjusting Entry
Date | Account | Debit | Credit
12/31/2020 | Rent Expense | 3,350 | Prepaid Rent | 3,350
12/31/2020 | Magazine Subscription Expense | 174 | Prepaid Magazine Subscriptions | 174
12/31/2020 | Supplies Expense | 1,100 | Supplies | 1,100
The first journal entry documents the expenditure of $6,700 towards rent for a period of four months beginning October 1, 2020. Additionally, a payment of $348 was made on November 1, 2020, to renew the magazine subscriptions of the clinic, while a sum of $3,300 was paid on December 1, 2020, for supplies.
The adjustment record accounts for the rental fees of three months ($6,700 divided by four equals $1,675, which then gets multiplied by three resulting in $3,350), expiration of magazine subscription of six months ($348 divided by 12 equals $29, which then get multiplied by six resulting in $174), and the consumption of $1,100 worth of supplies.
Read more about journal entry here:
https://brainly.com/question/14279491
#SPJ1
The Complete Question
Dr. Erica Chan. MD Owns EC Health Clinic. She Prepares Annual Financial Statements And Has A December 31, 2020 Year End. A. On October 1, 2020 Dr. Chan Prepared $6,700 For Four Months Of Rent. B. On November 1, 2020 Dr. Chan Prepared $348 To Renew The Clinics Magazine Subscriptions. C. On December 1, 2020 Dr. Chen Pays $3300 For Supplies. At The End Of The
Dr. Erica Chan. MD owns EC Health Clinic. she prepares annual financial statements and has a December 31, 2020 year end.
a. on October 1, 2020 Dr. Chan prepared $6,700 for four months of rent.
b. on November 1, 2020 Dr. Chan prepared $348 to renew the clinics magazine subscriptions.
c. on December 1, 2020 Dr. Chen pays $3300 for supplies. At the end of the year, $2200 of supplies had not been used.
Required:
for the above transactions, record the initial journal entry and the adjusting entry required on December 31, 2020.
Arabian Gulf Corporation reports the following stockholders'
equity section on December 31, 2020.
- Common stock; $10 par value; 700,000 shares authorized;
300,000 shares
issued and outstanding.
$ 3,0
Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 700,000 shares authorized; 300,000 shares issued and outstanding. $ 3,0
Based on the information provided, the stockholders' equity section of Arabian Gulf Corporation on December 31, 2020, is as follows:
Common Stock:
Par value: $10
Authorized shares: 700,000
Issued shares: 300,000
Outstanding shares: 300,000
The common stock has a par value of $10 per share. The company is authorized to issue a maximum of 700,000 shares, and as of December 31, 2020, 300,000 shares have been issued and are currently outstanding. The total value of the common stock can be calculated by multiplying the par value ($10) by the number of outstanding shares (300,000), resulting in a total common stock value of $3,000,000.
Learn more about stockholders here:
https://brainly.com/question/29705807
#SPJ4
This results in a total common stock value of $3,000,000.
According to the provided information, the stockholders' equity section of Arabian Gulf Corporation on December 31, 2020, is outlined as follows:
Common Stock:
Par value: $10
Authorized shares: 700,000
Issued shares: 300,000
Outstanding shares: 300,000
The common stock of Arabian Gulf Corporation carries a par value of $10 per share. This indicates the nominal value assigned to each individual share. As per the company's authorization, they have the authority to issue a maximum of 700,000 shares.
However, as of December 31, 2020, only 300,000 shares have been issued by the company, and all of these issued shares are currently in circulation and held by shareholders.
To determine the total value of the common stock, we can calculate it by multiplying the par value ($10) by the number of outstanding shares (300,000). This results in a total common stock value of $3,000,000. This value signifies the combined worth of all the outstanding shares of common stock held by the shareholders as of the specified date.
for similar questions on stock value.
https://brainly.com/question/28539863
#SPJ8
Which of the following amortization methods ignore the residual value in the calculation of the annual depreciation expense?
O Double-declining balance and capital cost allowance.
O Straight-line and double-declining-balance.
O Straight-line and capital cost allowance.
O Present value and straight-line.
Double-declining balance and capital cost allowance methods ignore the residual value in the calculation of the annual depreciation expense.
Depreciation is an account entry that shows how an asset's net value decreases over time.It includes the depreciation of vehicles, machinery, and other items.Different techniques are utilized and acknowledged overall for estimation of Devaluation
The estimation of yearly devaluation utilizing the straight line deterioration strategy is given by: Depreciable Expense/Assessed valuable lifeWhen recording change of the devaluation on gear, Perceive a cost - deterioration and de-perceive the resource through the Gathered devaluation business ledger to reflect outpouring of monetary advantages through use of resource.
To learn about depriciation
https://brainly.com/question/15085226
#SPJ4
Using the graph below, calculate the firm's profits at the profit maximizing output 196 182 168 154 140 126 112 115 138. 161 -P --MRMC AC Price 98 84 70 56 42 28 14 0 0 23 46 69 92 184 207 230 253 276
The firm's profit at the profit-maximizing output of 161 is 23.25 (approx. $23.3). is the answer.
The first step to finding the firm's profit at the profit-maximizing output of 161 is to calculate the firm's marginal revenue.
This can be done by finding the difference between the total revenue at 161 units of output and the total revenue at 160 units of output:
MR = TR(161) - TR(160)
MR = (161 x 23) - (160 x 23)
MR = 23
Next, we need to find the firm's marginal cost at 161 units of output.
This can be done by finding the difference between the total cost at 161 units of output and the total cost at 160 units of output:
MC = TC(161) - TC(160)
MC = (161 x 11.25) - (160 x 11)
MC = 28.25
Finally, we can calculate the firm's profit at 161 units of output by subtracting the firm's total cost at 161 units of output from the firm's total revenue at 161 units of output:
Profit = TR(161) - TC(161)
Profit = (161 x 23) - (161 x 11.25)
Profit = 23.25
Therefore, the firm's profit at the profit maximizing output of 161 is 23.25 (approx. $23.3).
know more about profit-maximizing
https://brainly.com/question/31852625
#SPJ11
examine the statements by timmy about inventory and carla
about the preparation of the audit program.
what problems can you identify?
solutions to problems.
You are the audit senior, and you are reviewing the working papers written by Timmy, audit staff on the audit of Halmart Inc. You read the following description of the results of testing of inventory
The problems identified require the audit team to improve the quality and reliability of their evidence-gathering processes, develop a tailored audit program, and provide necessary training and support to less-experienced team members.
Lack of documented proof of inventory controls and improper use of an earlier audit program for a different client are two issues mentioned in Timmy and Carla's statements. These issues can be resolved by accumulating more proof to back up inventory control claims, identifying restrictions and carrying out more thorough testing. It is also necessary to create a fresh, customized audit program that is unique to Halmart and takes industry risks into account.
Jason's difficulties comprehending management claims and gathering evidence can be overcome with training, advice, and mentoring from more seasoned team members. By putting these solutions into practice, Halmart Inc. can increase the accuracy and efficiency of its auditing procedure.
Learn more about audit program at:
brainly.com/question/28405968
#SPJ4
The complete question is "You are the audit senior, and you are reviewing the working papers written by Timmy, audit staff on the audit of Halmart Inc. You read the following description of the results of testing of inventory controls written by the audit staff member: The inventory manager advises that no changes have been made to the inventory programs during the current fiscal year. There are no documents on file authorizing program changes, so I conclude the inventory manager's statement is true. The inventory manager also advises that management did not attempt to override any controls relating to inventory. There are no memoranda or emails from management on file instructing the inventory manager to go against procedures, so I conclude the inventory manager's statement is true. The audit staff member concludes that the inventory controls have not been changed or overridden during the fiscal year, so the results of the interim testing of controls can be relied upon. Carla has been asked to join the team responsible for designing the audit programs for Halmart Carla has worked for the audit firm for a year and received a very high-performance rating from her supervisors on her previous audit on Tyson & Tyson a local supermarket chain. Carla feels confident she can apply her knowledge to the new audit. She takes a copy of the audit program for Tyson Inc. along to the first meeting, intending to suggest they use it as the basis for the audit program for Halmart. Carla thinks the Halmart audit program could use the same substantive procedures that were used on the Tyson & Tyson audit. The Audit Partner has indicated that since Halmart Inc. sells jewelry, the audit will involve the use of a specialist. Jason is the first year Audit Assistant assigned to the audit. He is having challenges understanding management assertions and how it relates to the audit and accumulating evidence. examine the statements by timmy about inventory and carla about the preparation of the audit program.
what problems can you identify?"
1. A business machine valued at $800 was contributed to a
charitable organization during the year. The machine cost $1,000
but was depreciated down to $600 before the donation was made.
Indicate the c
In this situation, the correct income tax treatment concerning the donation. Contribution of $600 (no income recognized).
The option (A) is correct.
When an asset is contributed to a charitable organization, the common guideline is that the benefactor can deduct the honest evaluation of the resource as a beneficent commitment on their personal government form. For this situation, the honest evaluation of the machine at the hour of the gift was $800.
However, the deduction for charitable contributions can't surpass the giver's changed premise in the resource. Since the changed premise of the machine is $600, the most extreme altruistic commitment derivation the benefactor can guarantee is $600.
Learn more about charitable organization
https://brainly.com/question/13680478
#SPJ4
This question is not complete, Here I am attaching the complete question:
1. A business machine valued at $800 was contributed to a
charitable organization during the year. The machine cost $1,000
but was depreciated down to $600 before the donation was made.
Indicate the ccorrect income tax treatment with respect to the donation. (A) Contribution of $600 (no income recognized)
(B) Contribution of $1,000 (income of $200 recognized)
(C) Contribution of $800 (income of $200 recognized)
(D) Contribution of $800 (no income recognized)
one of the main disadvantages of the corporate form is the professional management double taxation of dividends charter corporation must issue stock T/F
False. One of the main disadvantages of the corporate form is the double taxation of dividends, but not necessarily related to professional management or the requirement to issue stock.
In the corporate form, a company is a separate legal entity from its owners, which provides limited liability protection for shareholders. However, when corporations distribute profits to their shareholders in the form of dividends, those dividends are subject to double taxation. First, the corporation itself is taxed on its profits at the corporate tax rate. Then, when the dividends are distributed to the shareholders, they are taxed again as income at the individual level. This double taxation can be seen as a disadvantage because it reduces the amount of after-tax income received by shareholders. It also creates a potential barrier to attracting investors, as they may seek more tax-efficient investment options. However, it's important to note that not all corporations are required to issue stock or have professional management, as these aspects can vary depending on the specific corporate structure and regulations in place.
learn more about corporate form here: brainly.com/question/29345673
#SPJ11
A company limited by shares incorporated with two directors. One of them died of a heart attack during the pandemic of COVID19. Explain whether the company could continue to exist with the remaining director. Support your answer based on the Companies Act 2016. (30 marks) (malaysia company law)
Under the Companies Act 2016 in Malaysia, a company limited by shares can continue to exist with the remaining director, even if one of the directors passes away. The Act provides provisions to ensure the continuity of the company's operations in such situations.
1. Section 122(1) - Minimum Number of Directors: The Act requires a private company to have a minimum of one director. Since the company in question had two directors initially, the remaining director fulfills the minimum requirement, allowing the company to continue its existence.
2. Section 201(1) - Power of Directors: The Act grants the directors of a company the power to manage and make decisions on behalf of the company. As long as the remaining director is capable and willing to fulfill their duties and responsibilities, they can continue to act on behalf of the company.
Therefore, based on the Companies Act 2016, the company can continue to exist with the remaining director. However, it is advisable for the company to appoint a new director to ensure a balanced board and to meet any other specific requirements stated in the company's constitution or articles of association.
To know more about shares visit-
brainly.com/question/32807029
#SPJ11
The Reserve Bank of Australia published a Financial Stability Report in April 2022. In that report they highlighted that households in the Australian economy have a high level of mortgage debt and that house prices have increased in recent years. Explain why this is viewed as a cause for concern for financial stability.
The Reserve Bank of Australia published a Financial Stability Report in April 2022, in which they drew attention to the fact that Australian households have a high level of mortgage debt, and house prices have risen in recent years. This is viewed as a concern for financial stability because of the following reasons:
It could lead to increased financial stress: Households may struggle to repay their mortgages if interest rates rise, which may lead to increased financial stress.
It can result in a decline in consumer spending: Households with high levels of debt may cut back on their spending, which could have a negative impact on the broader economy.
It may increase the risk of default: If households are unable to repay their mortgages, this could result in an increase in loan defaults, which could have a significant impact on financial institutions and the broader economy.
It may result in an asset bubble: Rising house prices may lead to an asset bubble, which could burst and cause a significant decline in house prices. This could result in households owing more than their homes are worth, which could result in loan defaults. Overall, the high level of mortgage debt and rising house prices are viewed as a concern for financial stability because they could have a negative impact on households, financial institutions, and the broader economy.
Learn more about Financial stability: https://brainly.com/question/11465666
#SPJ11
PLEASE HELP ASAP
You are considering opening a new business selling carbon fibre wheels. You estimate your fixed cost at $20,000 and the variable cost of each product at $200. You expect the selling price to average $
The selling price of each product is $12,500.
As per the given scenario, the fixed cost of opening a new business selling carbon fibre wheels is estimated to be $20,000 and the variable cost of each product is $200. Let's calculate the selling price of each product. Let 'x' be the selling price of each product. Then, the total cost can be represented by the equation: Total cost = Fixed cost + Variable cost
Total cost = $20,000 + $200x
Since the profit is the difference between the selling price and the total cost, let's represent the profit by the equation: Profit = Selling price - Total cost
Profit = x - ($20,000 + $200x)
Profit = x - $20,000 - $200x
Now, let's assume that the expected profit is $5,000 and use this information to determine the selling price:
x - $20,000 - $200x = $5,000
Simplifying the above equation, we get: x = $12,500
Therefore, the selling price of each product is $12,500.
To know more about business visit:
https://brainly.com/question/13160849
#SPJ11
Direct Materials Variances Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is $3.75 per pound. If 15,000 units required 36,000 pounds, which were purchased at $4.00 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $9,000 ✓ Unfavorable ✓
b. Direct materials quantity variance $5,625X Unfavorable ✓
c. Total direct materials cost variance $3,375 ✓ Favorable ✓
Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Cost variance is the difference between the actual and standard costs at actual volumes.
The formula for calculating the Direct Material Price Variance is as follows: DM Price Variance = (AQ × AP) - (AQ × SP)Where, AQ = Actual Quantity of Direct Material Used AP = Actual Price per unit of Direct Material SP = Standard Price per unit of Direct Material From the given data, we have, AQ = 36,000 lbsAP = $4.00/lbSP = $3.75/lb Substituting the above values in the formula, DM Price Variance = (36,000 lbs × $4.00/lb) - (36,000 lbs × $3.75/lb)= $144,000 - $135,000= $9,000 (Unfavorable)
Therefore, the Direct Materials Price Variance is $9,000 (Unfavorable).(b) Direct materials quantity variance $5,625 Unfavorable T he formula for calculating the Direct Material Quantity Variance is as follows: DM Quantity Variance = (AQ × SP) - (SQ × SP)Where, AQ = Actual Quantity of Direct Material Used SP = Standard Price per unit of Direct Material SQ = Standard Quantity of Direct Material Allowed (i.e., AQ at standard input)From the given data, we have, AQ = 36,000 lbs SP = $3.75/lb SQ = 15,000 units × 2.5 lbs/unit= 37,500 lbs Substituting the above values in the formula, DM Quantity Variance = (36,000 lbs × $3.75/lb) - (37,500 lbs × $3.75/lb)= $135,000 - $141,562.5= ($6,562.5) or $6,563 (Unfavorable)Therefore, the Direct Materials Quantity Variance is $6,563 (Unfavorable).(c) Total direct materials cost variance $3,375 Favorable The formula for calculating the Direct Material Cost Variance is as follows: DM Cost Variance = (AQ × AP) - (SQ × SP) Where,
To know more about Material Price visit:-
https://brainly.com/question/19756265
#SPJ11
QUESTION 32 Below is information about a project to implement a new manufacturing cell to assemble personal digital assistance devices Act. Description Predecessor Optm. Most Pess. Expected time ID (a
The standard deviation is 0.67.
The expected time, most optimistic, and most pessimistic data are important for risk analysis in project management.
In a project to implement a new manufacturing cell to assemble personal digital assistance devices, the expected time is the anticipated duration the project will take.
The most optimistic time and most pessimistic time, on the other hand, represent the best and worst case scenarios, respectively. The predecessor is the activity that needs to be completed before the current activity. Optm is the optimistic time, while Pess is the pessimistic time.
For instance, let's assume that the expected time to complete the manufacturing cell assembly project is 10 weeks, the most optimistic time is 8 weeks, and the most pessimistic time is 12 weeks. In this case, the standard deviation would be calculated as follows:
Standard deviation (SD) = (12 - 8) / 6 = 0.67.
Where 6 is half the difference between the most optimistic and most pessimistic times. Once the standard deviation is determined, the risk associated with the project can be assessed.
Thus, expected time, most optimistic, and most pessimistic data are important for project risk analysis and help project managers estimate how much time a particular activity will take. They also help in determining the level of risk associated with the project.
To know more about risk analysis click on below link:
https://brainly.com/question/31802891#
#SPJ11
Monique has the opportunity to purchase a new piece of equipment for her factory. She wants to calculate the Weighted Average Cost of Capital (WACC) for her current operations. Long term borrowings make up 25% of the business's capital. The applicable interest rate paid for this is 6% per annum. The current tax rate that the business pays is 20%. The business is listed on the ASX and information from Bloomberg has calculated that the Beta for it (and other similar listed businesses) is 0.6. Bloomberg also states that the Market Risk Premium is 2% and the Government Bond Rate (risk free rate) is 3%. a. Calculate the cost of Debt Capital for the business (allow for the tax deductibility of the debt). (1 mark) b. Assuming that her business has only ordinary shares, calculate the cost of Equity Capital for the business. (1 mark) c. With your answers in a. and b. calculate the current WACC for Monique's business that should be used when considering new purchases of equipment. (2 marks) d. If the returns generated by purchasing the new piece of equipment equate to an 7.5% payback, should Monique go ahead with the investment? Why?
The cost of capital is 6.3%, which means that the new investment is not generating sufficient returns to justify the investment. In general, a firm should only undertake a new project if its return on investment is higher than the cost of capital.
The Weighted Average Cost of Capital (WACC) is an estimate of a company's cost of capital. It is used as a benchmark to determine whether a firm should undertake a new project or investment. In general, a firm should only undertake a new project if its return on investment is higher than the cost of capital.
The WACC is calculated using a company's cost of debt and cost of equity, weighted by the proportion of debt and equity in the company's capital structure.a. Calculation of Cost of Debt Capital for the business (allow for the tax deductibility of the debt)The cost of debt capital is the effective interest rate that a business pays on its debts. The effective interest rate takes into account the tax deductibility of the debt.
To know more about investment visit:-
https://brainly.com/question/15105766
#SPJ11
A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically:
Henry (60%) $ 64,000
Thomas (30%) 80,000
Catherine (10%) 148,000
Anne is going to invest $57,000 into the business to acquire a 30 percent ownership interest. Goodwill is to be recorded. What will be Anne's beginning capital balance?
The initial capital balance for Anne will be $379,600.
1. Calculate the total capital of the partnership by summing up the current capital balances of the partners:
Total capital = Henry's capital + Thomas' capital + Catherine's capital
= $64,000 + $80,000 + $148,000
= $292,000
2. Determine the value of Anne's investment based on her desired ownership interest:
Anne's investment = Total capital * Anne's ownership percentage
= $292,000 * 30%
= $87,600
3. Calculate the goodwill amount, which represents the excess of Anne's investment over the proportionate share of the partnership's net assets:
Goodwill = Anne's investment - (Total capital * Anne's ownership percentage)
= $87,600 - ($292,000 * 30%)
= $87,600 - $87,600
= $0
Since the goodwill is zero, it means Anne's investment perfectly matches her proportionate share of the partnership's net assets.
4. Finally, determine Anne's beginning capital balance by adding her investment to the total capital:
Anne's beginning capital balance = Total capital + Anne's investment
= $292,000 + $87,600
= $379,600
Therefore, Anne's beginning capital balance will be $379,600.
For more such questions on , click on:
https://brainly.com/question/29473582
#SPJ11
Using the Mid- Point Methods, Calculate the Elasticity based on data below: Indicating the type of Elasticity for each one. A- When the price of I phone was $4200 the quantity demanded was 120 unit, when the price decreased to $3900 the quantity increased to 200 units. B- When the price of computer increased from $2990 to $4999, which leads to an increase in the quantity supplied by 35%. C- When price of housing in UAE decreased by 35%, the demand for housing increased to 25%.
Mid-Point Method: Elasticity The mid-point method of calculating elasticity is the most accurate method available. The percentage change in quantity demanded or supplied is divided by the percentage change in price using this method.
The formula is:
Mid-point Elasticity Formula: \[\frac{\%\,\text{change in quantity demanded}}{\%\,\text{change in price}} = \frac{\frac{\left( Q_{2}-Q_{1} \right)}{\frac{\left( Q_{1}+Q_{2} \right)}{2}}}{\frac{\left( P_{2}-P_{1} \right)}{\frac{\left( P_{1}+P_{2} \right)}{2}}}\]
When the price of an I phone was $4200, the quantity demanded was 120 units, but when the price decreased to $3900, the quantity increased to 200 units. As a result, the percentage change in quantity demanded is 66.7%, while the percentage change in price is -7.14%.Elasticity = \[\frac{\%\,\text{change in quantity demanded}}{\%\,\text{change in price}}\]Elasticity = \[\frac{66.7}{-7.14}\]Elasticity= -9.33The elasticity of iPhone based on the data given is greater than one, indicating that it is elastic. When the price of a computer increased from $2990 to $4999, the quantity supplied increased by 35%.
As a result, the percentage change in quantity supplied is 35%, while the percentage change in price is 67.2%.Elasticity = \[\frac{\%\,\text{change in quantity supplied}}{\%\,\text{change in price}}\]Elasticity = \[\frac{35}{67.2}\]Elasticity = 0.52The elasticity of computers based on the data given is less than one, indicating that it is inelastic. When the price of housing in UAE decreased by 35%, the demand for housing increased to 25%.
As a result, the percentage change in quantity demanded is 25%, while the percentage change in price is -35%.Elasticity = \[\frac{\%\,\text{change in quantity demanded}}{\%\,\text{change in price}}\]Elasticity = \[\frac{25}{-35}\]Elasticity = -0.71The elasticity of housing based on the data given is less than one, indicating that it is inelastic.
Therefore, the type of elasticity for iPhone is elastic, while the type of elasticity for computers and housing is inelastic.
To know more about Elasticity visit :
https://brainly.com/question/30999432
#SPJ11
A. The demand for iPhones is elastic.
B. The supply of computers is elastic.
C. The demand for housing in UAE is elastic.
How calculate the elasticityTo calculate the elasticity using the midpoint method, we use the formula:
Elasticity = (Percentage change in quantity / Percentage change in price) * (Price / Quantity)
For each scenario, we will calculate the elasticity and determine its type.
A. When the price of the iPhone decreased from $4200 to $3900, and the quantity increased from 120 units to 200 units.
Percentage change in quantity = [(200 - 120) / ((200 + 120) / 2)] * 100 = (80 / 160) * 100 = 50%
Percentage change in price = [(3900 - 4200) / ((3900 + 4200) / 2)] * 100 = (-300 / 4050) * 100 ≈ -7.41%
Elasticity = (50 / -7.41) * (4050 / 160) ≈ -337.18
Since the elasticity is negative, we can conclude that the demand for iPhones is elastic.
B. When the price of the computer increased from $2990 to $4999, and the quantity supplied increased by 35%.
Percentage change in quantity = 35%
Percentage change in price = [(4999 - 2990) / ((4999 + 2990) / 2)] * 100 ≈ 33.32%
Elasticity = (35 / 33.32) * (2990 / 35) ≈ 85.09
Since the elasticity is greater than 1, we can conclude that the supply of computers is elastic.
C. When the price of housing in UAE decreased by 35%, and the demand for housing increased by 25%.
Percentage change in quantity = 25%
Percentage change in price = -35%
Elasticity = (25 / -35) * (35 / 25) = -1
Since the elasticity is negative, we can conclude that the demand for housing in UAE is elastic.
Learn more about elasticity at https://brainly.com/question/1048608
#SPJ4
As a firm's production increases in the short run, the average total cost curve eventually slopes upward because
average physical product rises with increases in output.
marginal physical product eventually declines as output increases.
average fixed cost declines with increases in output.
marginal cost eventually declines as output increases.
The average total cost curve eventually slopes upward as a firm's production increases in the short run because marginal cost eventually declines as output increases.
In the short run, a firm's average total cost (ATC) is determined by dividing total cost by the quantity of output. As production increases, initially both average fixed cost (AFC) and average variable cost (AVC) decline, leading to a downward-sloping ATC curve. This is because the fixed cost is spread over a larger quantity of output, reducing the per-unit cost. Additionally, as production increases, the firm benefits from economies of scale, resulting in lower variable costs.
However, as output continues to increase, the marginal cost (MC) of producing additional units eventually starts to rise. This is because the firm may experience diminishing marginal returns, where each additional unit of output adds less to total production than the previous unit. As a result, the marginal cost curve intersects the average total cost curve and causes it to slope upward. The increasing marginal cost outweighs the declining average fixed cost and average variable cost, leading to an upward-sloping ATC curve.
Therefore, the correct statement is that the average total cost curve eventually slopes upward because marginal cost eventually declines as output increases.
Learn more about marginal cost here:
brainly.com/question/3200587
#SPJ11
Celaneo Avionics makes aircraft instrumentation. Its basic navigation radio requires $60 in variable costs and $4,000 per month in fixed costs. Celaneo sells 20 radios per month. If the company further processes the radio, to enhance its functionality, it will require an additional $40 per unit of variable costs, plus an increase in fixed costs of $500 per month. The current sales price of the radio is $280. The CEO wishes to improve operating income by $1,200 per month by selling the enhanced version of the radio. In order to meet this target, the sales price to be charged for the enhanced product is A. $380 per unit B. $125 per unit C. $320 per unit D. $405 per unit A small business produces a single product and reports the following data: Sales price Variable cost Fixed cost $8.00 per unit $5.30 per unit $22,000 per month units per Volume 10,000 month The company believes that the volume will go up to 12,000 units if the company reduces its sales price to $7.25. How would this change affect operating income? A. It will increase by $3,600. B. It will decrease by $5,000. C. It will decrease by $3,600. D. It will increase by $5,000. Fuller Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost? Replacement Machine $46,000 5 0 age Original cost Remaining useful life in years Current in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs Old Machine $60,000 5 5 $30,000 $9,000 $0 $7,000 $0 $4,000 A. $60,000 B. $30,000 C. $9,000 D. $46,000 Artisan Works is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen, and collectors. The data are as follows: Sales price per unit Variable cost per unit Fixed costs per month $800 470 11,550 If Artisan expects to sell 40 units per month, what is his margin of safety expressed in units per month? O A. 5 units B. 3 units C. 75 units D. 40 units Ambrosia Foods produces a gourmet condiment that sells for $16 per unit. Variable cost is $10 per unit, and fixed costs are $8,000 per month. If Ambrosia expects to sell 1,500 units, compute the margin of safety in units. (Round any intermediate calculations and your final answer to the nearest whole unit.) A. 167 units B. 1,333 units C. 83 units D. 1,500 units
Celaneo Avionics needs to sell the enhanced radio for $380 per unit to improve operating income by $1,200 per month.
Reducing the sales price to $7.25 per unit would decrease operating income by $5,000.
What is the sunk cost?The sunk cost is the book value of the old machine, $30,000.
The margin of safety for Artisan Works is 75 units.
The margin of safety for Ambrosia Foods is 83 units.
Current operating income = ($280 - $60) * 20 - $4,000 = $400
Target operating income = $400 + $1,200 = $1,600
Contribution margin per unit = ($4,000 + $500 + $1,200) / 20 = $305
Sales price = $305 + $40 = $380
Therefore, Celaneo Avionics needs to sell the enhanced radio for $380 per unit to improve operating income by $1,200 per month.
Read more about operating income here:
https://brainly.com/question/30400720
#SPJ4
What is the management theory of Apple company?
Apple's management theory focuses on three main principles: innovation, simplicity, and customer focus.
The management theory of the Apple Company is a set of principles and practices that ensure the company's productivity and profitability. It includes the application of different managerial theories and strategies that enhance the efficiency of the company's operations.
The company's innovation principle involves designing, developing, and marketing products that are innovative, unique, and of high quality. This principle is implemented through the company's Research and Development (R&D) department, which continuously innovates and develops new products to meet the changing market needs and preferences.The simplicity principle is implemented through the company's organizational structure, which is simple and efficient. The company has a flat organizational structure that allows for easy communication and decision-making, enabling the company to respond quickly to market changes and customer needs.The customer focus principle is implemented through the company's customer-oriented policies and practices. Apple focuses on providing high-quality products and services that meet customer needs and preferences. The company also provides excellent customer service, which enhances customer satisfaction and loyalty.Overall, the management theory of Apple Company is focused on innovation, simplicity, and customer focus, which are the main drivers of the company's success. The application of these principles has enabled the company to maintain its competitiveness in the global market and achieve sustained growth and profitability.Learn more about organizational structure here: https://brainly.com/question/23967424
#SPJ11
combining or integrating unified communications (uc) into which of the following can shorten sales cycles and increase revenues? group of answer choices c) sales force automation a) supply chain management b) enterprise resource planning d) service-oriented architecture
Combining or integrating Unified Communications (UC) into sales force automation (option c) can shorten sales cycles and increase revenues.
Sales force automation refers to the use of technology to streamline and automate various sales processes, such as lead management, customer relationship management (CRM), and sales forecasting. By integrating UC into sales force automation, businesses can enhance their communication and collaboration capabilities within the sales team and with customers.
Unified Communications combines various communication channels, such as voice, video, instant messaging, and presence, into a single platform. By integrating UC into sales force automation, sales representatives can have real-time access to customer information, communicate with prospects and clients more effectively, and collaborate with team members seamlessly.
This integration can lead to shorter sales cycles by enabling faster and more efficient communication and collaboration, allowing sales representatives to respond promptly to customer inquiries, address their needs, and close deals more efficiently. Improved communication can also enhance customer satisfaction, leading to increased revenues and repeat business.
While supply chain management (option a), enterprise resource planning (option b), and service-oriented architecture (option d) are important in their respective areas, integrating UC into sales force automation specifically targets the sales process and can have a direct impact on sales cycle duration and revenue generation.
For more questions on: Unified Communications
https://brainly.com/question/32374699
#SPJ11
Cash Beginning Balance (a) (b) O $85,500 O $339,900 O $657,900 371,700 $403,500 44,100 114,900 (c) (d) (e) What is the ending balance of the Cash account? (f) (g)
The ending balance of the Cash account was $403,500. This amount is what is left when the cash account is balanced.
What is the ending balance?The ending balance of a cash account refers to the amount that is left after subtracting the debits from the credit. On the left-hand side of the account, we have a sum of credit transactions that amounted to $530,700, and on the debit side which is the right side of the accounts book, we have a total of debit transactions that amounted to $127,200.
When we subtract the debit from the credit, the resulting amount would be $403,500 and this is the ending balance of the cash account.
Learn more about cash accounts here:
https://brainly.com/question/735261
#SPJ4
For this case, you are a merchant that sells home improvement items (think Home Depot) and you only accept cash. Please answer the following questions below. Which payment system would you implement and why? You can implement more than one payment system. Are you taking on additional risk, eliminating existing risk, or both with your implementation? What impacts will the new system(s) have on your costs, revenues, and customers?
For my home improvement business that only accepts cash, I would implement both a traditional Point of Sale (POS) system and a mobile payment system. The traditional POS system would provide a reliable and secure way to handle cash transactions, while the mobile payment system would allow customers to make payments using their smartphones or other mobile devices.
The traditional POS system would consist of a cash register, cash drawer, and receipt printer, providing a familiar and convenient way for customers to pay in cash. This system would help maintain accuracy in cash handling and provide a record of transactions. The mobile payment system, on the other hand, would leverage technology and allow customers to make payments through mobile apps or digital wallets. This would cater to customers who prefer digital payment methods and enhance convenience.
Are you taking on additional risk, eliminating existing risk, or both with your implementation?
By implementing both a traditional POS system and a mobile payment system, I would be taking steps to both eliminate existing risks and reduce potential risks. The traditional POS system would help eliminate the risk of errors in cash handling, provide accountability for cash transactions, and reduce the chance of theft or fraud. It would also allow for accurate record-keeping and reconciliation.
On the other hand, the mobile payment system would introduce a new form of payment, reducing the risk associated with handling large amounts of cash and the potential for theft. It would also minimize the risk of counterfeit currency, as digital transactions are more secure. However, implementing a mobile payment system would require adequate security measures to protect customer data and prevent unauthorized access, which would be an additional risk to manage.
Implementing both a traditional POS system and a mobile payment system would have several impacts on costs, revenues, and customers. The initial cost of setting up the systems, including hardware, software, and staff training, would incur expenses. However, the long-term benefits would outweigh the costs.
In terms of revenues, offering multiple payment options would likely increase customer satisfaction and attract a broader customer base. Customers who prefer cash payments would still have a convenient option, while those who prefer digital payments would be accommodated. This increased convenience and flexibility would likely lead to higher sales and revenue.
Moreover, the implementation of mobile payment systems could potentially reduce the frequency of cash transactions, reducing the need for frequent cash handling, counting, and reconciling. This could lead to cost savings by streamlining the cash management process and reducing the risk of errors.
Overall, implementing both a traditional POS system and a mobile payment system would enhance customer experience, increase revenue potential, streamline cash management processes, and reduce certain risks associated with cash handling.
learn more about "customers ":- https://brainly.com/question/380037
#SPJ11
Describe Monitoring the Stakeholder Engagement and Communication Plans.
Describe all inputs and processes required to optimize information flow.
Identify the importance of ensuring continuous management of these plans.
Describe risks of performance indicators and conflicts that may affect project success.
Summarize project document updates required during project in all phases.
Continuous management of stakeholder engagement and communication plans is essential for project success, involving inputs like stakeholder identification and processes such as information analysis and performance monitoring.
How to optimize stakeholder engagement and communication plans for effective information flow?Monitoring the Stakeholder Engagement and Communication Plans:
Monitoring the stakeholder engagement and communication plans is crucial for the success of any project. It involves continuously assessing and evaluating the effectiveness of the plans to ensure that stakeholders are adequately informed and engaged throughout the project lifecycle. The following inputs and processes are required to optimize information flow:
1. Stakeholder Identification: Identifying all relevant stakeholders involved in the project and understanding their interests, needs, and expectations.
2. Communication Channels: Determining the most appropriate communication channels to reach different stakeholders effectively. This can include meetings, emails, project portals, social media, or other specific platforms.
3. Communication Objectives: Establishing clear communication objectives for each stakeholder group to ensure the right information is conveyed to the right people at the right time.
4. Information Collection and Analysis: Collecting relevant information from stakeholders, analyzing it, and using it to tailor communication messages and strategies accordingly.
5. Feedback Mechanisms: Implementing feedback mechanisms to gather input from stakeholders and assess their satisfaction with the communication and engagement efforts.
6. Performance Monitoring: Continuously monitoring and evaluating the performance of the communication and engagement plans to identify areas for improvement.
Importance of Continuous Management:
Continuous management of stakeholder engagement and communication plans is vital for several reasons:
1. Stakeholder Satisfaction: Regularly monitoring and managing the plans ensures that stakeholders receive the information they need, increasing their satisfaction and reducing the risk of misunderstandings or conflicts.
2. Alignment with Project Goals: Continuous management helps to ensure that the communication and engagement efforts remain aligned with the project's objectives, thereby enhancing project success.
3. Adaptability: Stakeholder needs and expectations can change throughout the project lifecycle. Continuous management allows for adjustments in the plans to address emerging issues and maintain stakeholder support.
4. Issue Identification and Resolution: By monitoring the plans, any issues or conflicts can be identified early on, enabling prompt resolution and minimizing their impact on the project.
Risks of Performance Indicators and Conflicts:
While performance indicators are valuable tools for measuring the effectiveness of stakeholder engagement and communication plans, they can be subject to certain risks and conflicts:
1. Inadequate Metrics: If the chosen performance indicators do not accurately capture the relevant aspects of stakeholder engagement and communication, the evaluation may provide misleading results and fail to identify areas that require improvement.
2. Conflicting Interests: Stakeholders may have different priorities or conflicting interests, which can lead to challenges in developing effective communication strategies that cater to everyone's needs. Balancing these interests requires careful management to avoid conflicts.
3. Lack of Participation: Some stakeholders may choose not to engage or provide feedback, making it challenging to assess the effectiveness of the plans accurately. This can result in incomplete or biased performance indicators.
Project Document Updates:
Throughout the project lifecycle, various documents require updates to reflect the evolving nature of the project. These updates typically include:
1. Project Charter: The project charter may be updated to incorporate changes in stakeholder engagement strategies, communication plans, or objectives based on lessons learned and evolving project requirements.
2. Communication Plans: As the project progresses, the communication plans may need to be revised to accommodate new stakeholders, adjust communication channels, or address emerging needs.
3. Stakeholder Analysis: The stakeholder analysis document should be updated regularly to reflect changes in stakeholder dynamics, interests, and relationships.
4. Risk Management Plan: Updates to the risk management plan should include any new risks or issues related to stakeholder engagement and communication that may arise during the project.
Learn more about: Stakeholder
brainly.com/question/30241824
#SPJ11
At the end of the current month, a company had an ending balance in the Accounts Payable account of $22,000. Purchases on account during the current month amounted to $16,600. If the balance in the Accounts Payable account at the end of the previous month was $27,200, what is the amount paid to creditors for purchases on account, during the current month?
a) $21,800
b) $65,800
c) $32,600
d) Cannot be determined
The amount paid to creditors for purchases on account is $21,800
Given data:
Ending balance in the Accounts Payable account of $22,000.
Purchases on account during the current month amounted to $16,600.
Balance in the Accounts Payable account at the end of the previous month was $27,200.
The formula to calculate the amount paid to creditors is:
Amount paid to creditors = Purchases on account - Decrease in Accounts Payable + Increase in Accounts Payable - Purchases on account during the current month = $16,600 - Decrease in Accounts Payable = $22,000 - $27,200= - $5,200(Decrease as Accounts payable decreased) Therefore, Amount paid to creditors
= $16,600 - (-$5,200)= $16,600 + $5,200= $21,800
Hence, the amount paid to creditors for purchases on account, during the current month is $21,800.
For more questions on purchase
https://brainly.com/question/27975123
#SPJ11