Clap Off Manufacturing uses 1,300 switch assemblies per week and then reorders another 1,300. Assume the relevant carrying cost per switch assembly is $5 and the fixed order cost is $575. Calculate the carrying costs. Calculate the restocking costs. Calculate…
Jackson Company applies overhead to products using direct labor cost as the activity level. During2008, Jackson Company had the following estimated costs:Direct materials ……………….. $243,000Direct labor …………………… 200,000Advertising expense …………….. 35,000Rent on factory building ………… 36,000Depreciation ……………….. … 60,000Indirect materials…
Deal Co. had 100,000 common shares in issue at the start of 2011. during the year the company issued an additional 25,000 shares, which were given to managers as bonuses, and bought and retired 5,000 shares from existing shareholders for…
Smith Jones Market Company has 3,000 shares 9%, $60.00 par cumulative preferred stock outstanding and 4,900 shares of $3.75 par value common stock outstanding. The company began operations on April 1, 2010. The cash dividends declared and paid during each…
The Marcus Company is evaluating the proposed acquisition of a new machine. The machine’s base price is $375,000, and it would cost another $150,000 to modify it for special use. The machine falls into the MACRS 3-year class, and it…
On 1 July 2011 Sprintfast Couriers, which has a year-end of 30 June, purchased a delivery truck for use in its courier operations at a cost of $65 000. At the end of the truck’s useful life it is expected…
The term of office for the Federal Reserve’s Board of Governors is 14 years. But how long does a member actually serve? Calculate the average duration of Board service for these two twenty-year periods:1950-19701990-2010Note: Calculate the average period of time…
Messineo LLC borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal annual end of year payments. As the CFO of Messineo, LLC you must prepare a report…
Polar Inc. sells air conditioners. On January 1, 2012, they had 5,000 air conditioner units in inventory. If Polar reported inventory on a FIFO basis, its beginning inventory balance would include the following: Year units were purchasedNumber of unitsCost per…
Perpetual inventory system: journal entries. At the beginning of 20X3, Beehler Company implemented a computerized perpetual inventory system. The following transactions occurred: •Purchases on account: 500 units @ $4 = $2,000 •Sales on account: 300 units @ $5 = $1,500…
