Response:
The answer to the question is provided below.
Analysis:
(a) What quantities of peanut butter and jelly will David purchase with his $3 weekly allowance?
It is stated that David prefers 2 ounces of peanut butter for each ounce of jelly, thus
2Pb = J, and the budget constraint can be expressed as 0.05Pb + 0.1J = 3.
Using substitution,
David will acquire Pb = 30 ounces, J = 15 ounces.
30(0.05) + 15(0.10) = 3
(b) If the cost of jelly rises to $0.15 per ounce, what quantities of each item would he purchase?
If pj = $0.15,
24(0.05) + 12(0.15) = 3
Using substitution, we find J = 12 ounces, Pb = 24 ounces.
The journal entries to be recorded are as follows: For Stefan Ceramics, the first entry to recognize the purchase of 720 kgs of tungsten carbide at $280 per kg, totaling 291,600 would involve debiting Merchandise Inventory and crediting Accounts Payable/Cash for 291,600. The second entry documents the use of 720 kgs of tungsten carbide, transferring the full amount used to Work in Process, with the corresponding credit to Merchandise Inventory, also for 291,600.
Answer:
C) $88,000
Explanation:
A period cost refers to expenses that cannot be capitalized through inventory or other assets.
Under the variable costing method, fixed costs are classified as period costs.
Fixed costs:
Fixed manufacturing overhead: $60,000
Fixed selling and administrative expense: $28,000
