Billings Company has the following costs when producing 100,000 units: Variable costs $600,000 Fixed costs 900,000 An outside su

Answer:

A.

Depreciation Expense for the first year: $14,400

For the second year’s depreciation expense: $11,520

B.

The depreciation expense for the first year is equal to the second year’s depreciation expense = $7,200

Explanation:

A.Using the straight-line method, the asset has a useful life of 10 years, meaning its annual depreciation represents 10% of the depreciable cost.

Calculating the depreciable cost results in = Total cost of the asset - salvage value =  $80,000-$8,000 = $72,000

With the double-declining-balance method, the straight-line rate of 10% is increased to 20%, which is then applied to the book value of the depreciable cost at the start of each year.

For the first year, the depreciation expense is calculated as 20% of $72,000  = $14,400

At the onset of the second year, the book value of the depreciable cost is $72,000 -$14,400 = $57,600

The depreciation expense for the second year is then 20% of $57,600  = $11,520

B.

The organization adopts straight-line depreciation, calculating Depreciation Expense for each year using the following formula:  

Depreciation Expense = (Cost of the machine − salvage value)/Useful Life = ($80,000-$8,000)/10 = $7,200

Thus, the first year’s Depreciation Expense = the same value as the second year’s depreciation expense = $7,200

Required information Problem 20-1A Production cost flow and measurement; journal entries LO P1 [The following data pertains to the questions below.] Sierra Company produces soccer balls in two sequential processes: Cutting and Stitch production starting at the beginning of the Cutting process. Here's the data available: Raw materials inventory Work in process inventory-Cutting Work in process inventory Stitching Finished goods inventory Beginning Inventory $16,000 63,500 83,300 24, leo Ending Inventory $17,950 70,500 66,700 12,250 The following additional information elaborates on the production activities of the company for May Direct materials Raw materials purchased on credit Direct materials used in cutting Direct materials used in stitching 5 35.000 22,250 Direct Tab 12 of 2 Next > Saved Check my work mode: This indicates correctness or errors in your work The subsequent information describes production activities in the company: Direct materials Raw materials purchased on credit Direct materials used in Cutting Direct materials used in stitching $ 35,000 22,250 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 16,699 66,490 138, 40e Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 10,800 55,400 49,000 Raw materials purchased on credit Direct materials used in Cutting Direct materials used in stitching $ 35,00 22,250 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 16,689 66,480 138,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 10,800 55,400 49,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $336,000 Piex1 2 of 2 Completeu su Tor. It does Required information RM - April 30 RM purchases RM - May 31 Raw Materials (RM). 16.000 Indirect materials employed 35.000 Direct materials - Cutting 17.950 22 250 10.800 35.900 219 430 WIP - April 30 Direct materials - Stitching Direct labor - Cutting Overapolled overhead - Cutting % $ Work in Process (WIP) Stitching 83,300 Cost of goods sold 66,400 56,750® 79,680 66,700 Factory Overhead 1 2 of 2 Next > id Windows to be a 9 W WORMode

The opportunity cost amounts to $532,000. This represents the cost of the most preferable alternative that was not selected. In this case, rejecting the investment project meant foregoing the potential return of $532,000.

Answer: True

Explanation:

The context reveals that Esther and Holly are at odds regarding which company should receive their business pitch, but they opt to put aside their differing views on environmental matters to concentrate entirely on the company that offers the most immediate benefits.

This situation illustrates that their attention is on shared interests rather than individual positions, as evidenced by their choice to ignore their disparities and aim towards a mutual objective.

The relevant type of access control is Discretionary Access Control.