Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is $15 an budgete

Answer:

a-1) Present value of the installment option is $93.08.

      Present value for immediate bill payment is $90.

a2) Opting to pay the bill immediately is the preferable choice.

b-1) Present value of the installment option amounts to $88.65.

b-2) In this scenario, paying in installments is the better option.

Explanation:

a-1) To determine the present value of the installment plan, the payments occur as follows: $25 immediately, followed by $25 at the end of each of the next 3 years. This setup constitutes an annuity due, and the present value can be calculated as follows:

PMT denotes the annuity payment at the start of each period, which is $25.

             i signifies the interest rate compounded per period.

=0.05

            n represents the number of payment periods, which amounts to 4.

Present value = =$93.08

The present value of immediate bill payment equals $100, reduced by the 10% discount, calculated as $100 * 0.9 = $90.

a-2) Paying immediately is advantageous since it costs $90 compared to the $93.08 present value of installments.

b1) If the installment payments do not commence for another year, the present value of the payment series is computed as:

                                          =

                                          = = 88.65

b-2) In this instance, paying via installments is better as it is less expensive at $88.65 compared to the immediate payment's present value at $90.

Answer:

The cost of goods manufactured equals 650,000.

Explanation:

Based on the following details:

Beginning inventory= $250,000

Cost accumulated during the period= $500,000

Ending work in process inventory= $100,000.

To find the cost of goods manufactured, apply this formula:

cost of goods manufactured= beginning WIP + cost incurred - Ending WIP

cost of goods manufactured= 250,000 + 500,000 - 100,000

cost of goods manufactured= 650,000

Answer:

False

Explanation:

According to GAAP, if the costs associated with providing accounting information surpass the benefits of obtaining such data, then it should not be reported.

For instance, there might be minimal discrepancies in particular accounts that prevent a balance sheet from being accurate. If the accounting mistake is negligible, such as a few hundred dollars, it isn't practical to have an entire audit team re-examine all financial statements to find the source of the error. An adjusting entry could be utilized to balance the accounts.

Consider a scenario where you, as an auditor, need to verify the physical inventory at a factory, but some supply boxes have been misplaced. Counting all supplies and materials again could take an entire day; however, is it truly worth that time? If the items are highly valuable, then yes, otherwise, if they consist of low-cost components, likely not.

Answer:

The correct answer is "600000".

Explanation:

The values provided are:

Cost of office furniture,

= $100,000

Cost of the computer system,

= $500,000

• The revised MACRS allows a corporation to gradually reduce the mortgage balance of such depreciating assets.
• In the initial years, MACRS permits accelerated depreciation but then slows down the process. This is advantageous for businesses from a taxation perspective.

Now,

The cost recovery deduction is calculated as:

=

Substituting the values gives us

=

=