Answer: the modification adds distinct goods or services at a price that reflects their stand-alone selling price.
Explanation:
When multiple goods or services are offered in the same contract they are not usually given their standalone price but rather a contract price that is less as a form of discount for getting all the goods at the same time.
When a modification is added however, that reflects the standalone price of goods added, the contract has to account for the contract modification because there are now multiple pricing conventions and this needs to be accounted for.
ssued 10,800 shares of common stock at $6.00 per share. Issued 20,400 shares of common stock at $8.20 per share. Reported a net income of $108,000. Paid dividends of $59,000. Purchased 3,100 shares of treasury stock at $10.20 (part of the 20,400 shares issued at $8.20). What is total shareholders' equity at the end of 2021
Answer:
$249,460
Explanation:
Calculation to determine total shareholders' equity at the end of 2021
Issued of stock $64,800
( 10,800 shares *$6.00 per share)
Issued of stock $167,280
(20,400 shares *$8.20 per share)
Net income of $108,000
Less Dividends ( $59,000)
Less Treasury stock ($31,620)
( 3,100 shares $10.20)
2021 Ending total shareholders' equity $249,460
Therefore The total shareholders' equity at the end of 2021 is $249,460
When the general level of prices rises, the economy is experiencing ____.
If 10,000 pounds of direct materials are purchased for $9,300 on account and the standard cost is $.90 per pound, the journal entry to record the purchase is Raw Materials Inventory 9,300 Accounts Payable 9,000 Materials Price Variance 300 Raw Materials Inventory 9,000 Materials Price Variance 300 Accounts Payable 9,300 Work In Process Inventory 9,300 Accounts Payable 9,000 Materials Quantity Variance 300 Raw Materials Inventory 9,300 Accounts Payable 9,300
Answer:
Raw Materials Inventory 9,000 Materials Price Variance 300 Accounts Payable 9,300
Explanation:
Based on the information given journal entry to record the purchase is
Dr Raw Materials Inventory $9,000
(10,000 pounds*$.90 per pound)
Dr Materials Price Variance $300
($9,300-$9,000)
Cr Accounts Payable $9,300
(To record purchase)
A tax on a good Group of answer choices gives buyers an incentive to buy less of the good than they otherwise would buy. gives sellers an incentive to produce more of the good than they otherwise would produce. creates a benefit to the government, the size of which exceeds the loss in surplus to buyers and sellers. All of the above are correct.
Answer:
gives buyers an incentive to buy less of the good than they otherwise would buy
Explanation:
The tax on the product means that it provided the inventive to the buyer in the case when the buyer purchase less of the product as compared when they purchase in other way
So according to the given situation, the tax on a good fits to the first option only
Therefore only first option is correct
Hence, the other options seems incorrect
Net income was $503,000 in 2020, $473,000 in 2021, and $521,000 in 2022. What is the percentage of change from (a) 2020 to 2021, and (b) from 2021 to 2022
Answer and Explanation:
The computation of the percentage of change is as follows;
a. For 2020 to 2021
= (Net income in 2021 - net income is 2020) ÷ (net income in 2020)
= ($473,000 - $503,000) ÷ ($503,000)
= -5.96% decrease
b .For 2021 to 2022
= (Net income in 2022 - net income is 2021) ÷ (net income in 2021)
= ($521,000 - $473,000) ÷ ($473,000)
= 10.15% increase
In this way it is calculated
The maximum one-day loss computed for the value-at-risk (VaR) method does not depend on: a. the current level of interest rates. b. the standard deviation of the daily percentage changes in the currency over a previous period. c. the confidence level used. d. the expected percentage change in the currency for the next day
Answer:
a. the current level of interest rates
Explanation:
The current interest rate represent the factor that does not based upon the rate of interest as it does not modify on the frequentyly basis such as the price of the stock or the current price. In the case when we do the trasing in the stock market so the standard deviation would be used in order to get to know the stock volatility
Hence, the option a is correct
Top Line Electronics has a piece of machinery that costs $600,000 and is expected to have a useful life of 4 years. Residual value is expected to be $100,000. Using the double-declining-balance method, what is depreciation expense for the first year
Answer:
Annual depreciation= $250,000
Explanation:
Giving the following information:
Purchase price= $600,000
Salvage value= $100,000
Useful life= 4 years
To calculate the annual depreciation, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(600,000 - 100,000) / 4]
Annual depreciation= $250,000
If reserves increase by $12 billion, what is the difference in the resulting change in checkable deposits when the required reserve ratio is 10 percent compared to when it is 8 percent
Answer:
$30 billion
Explanation:
Calculation to determine the difference in the resulting change in checkable deposit
Using this formula
Difference in checkable deposit=Increase in reserve/(1* Reserve ratio 8%)-Increase in reserve/(1* Reserve ratio 10%)
Let plug in the formula
Difference in checkable deposit=$12 billion/(1*8%)-$12 billion/(1*10%)
Difference in checkable deposit=$12 billion/0.08-$12 billion/0.10
Difference in checkable deposit=$150 billion-$120 billion
Difference in checkable deposit=$30 billion
Therefore the difference in the resulting change in checkable deposit is $30 billion
As a general construction contractor, WDF INC. contracted to renovate schools in New York City. WDF subcontracted with JLG Architectural Products, LLC to supply windows for the renovation. Under the subcontract, a company called East Coast Window Installers Inc. was designated to install the windows for the project. The subcontract provided that JLG Architectural Products and East Coast Window Installers would perform and complete the subcontract work together. The subcontract also specifically acknowledged that JLG Architectural Products proposed the work in partnership with East Coat Window Installers. After completion of the project, a dispute over payment and the quality of workmanship arose between the parties. WDT claimed that JLG Architectural Products and East Coast Window Installers should be jointly and severally liable for any liability found against either party, because the two were partners in the window installation project. Was WDF correct
Answer:
WDF Inc. is correct. From the fact that JLG Architectural Products and East Coast Window Installers Inc. were partners in the window installation subcontract, they should be jointly and severally held liable for any liability arising from the window installation project unless they have contrary agreements clearly differentiating their liabilities in the partnership.
Explanation:
WDF Inc. = main contractor
JLG Architectural Products = subcontractor and partner to East Coast
East Coast Window Installers Inc. = subcontractor and partner to JLG
JLG Architectural Products and East Coast Window Installers Inc have formed a partnership when they come together to form a business or execute a business transaction jointly. A joint venture is a kind of partnership.
indirect materials are those used that enter into and become a major part of the finished product true or false
Inventory records for Marvin Company revealed the following: Date Transaction Number of Units Unit Cost Mar. 1 Beginning inventory 900 $ 7.26 Mar. 10 Purchase 520 7.76 Mar. 16 Purchase 452 8.36 Mar. 23 Purchase 510 9.06 Marvin sold 1,760 units of inventory during the month. Ending inventory assuming FIFO would be: (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.)
Answer:
Ending inventory cost= $5,556.92
Explanation:
Giving the following information:
Mar. 1 Beginning inventory 900 $ 7.26
Mar. 10 Purchase 520 7.76
Mar. 16 Purchase 452 8.36
Mar. 23 Purchase 510 9.06
Units sold= 1,760
Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the costs of the last units incorporated into inventory:
Units in ending invnetory= 2,382 - 1760= 622
Ending inventory cost= 510*9.06 + 112*8.36
Ending inventory cost= $5,556.92
Consider a stock with current year dividend equal to $2.00 per share. You believe the dividend will grow 15% per year for 10 years and 4% per year thereafter.The required equity rate of return (and your hurdle rate) is 10%. What is the fair price of the stock? Assuming the market price of the stock is $70, what is the expected return?
Answer:
a. Fair price of the stock = $79.82
b. The expected return is 7.29%
Explanation:
a. What is the fair price of the stock?
Note: See the attached file for the calculation of present values (PV) of dividends for year 1 to 10.
From the attached excel file, we have:
Previous year dividend in year 1 = Current year dividend = $2
Total of dividends from year 1 to year 10 = $25.74793130208810
Year 10 dividend = $8.09111547141582
Therefore, we have:
Year 11 dividend = Year 10 dividend * (100% + Dividend growth rate in year 11) = $8.09111547141582 * (100% + 4%) = $8.41476009027245
Share price at year 10 = Year 11 dividend / (Required equity rate of return - Perpetual dividend growth rate) = $8.41476009027245 / (10% - 4%) = $140.246001504541
PV of share price at year 10 = Price at year 10 / (100% + required equity rate of return)^Number of years = $140.246001504541 / (100% + 10%)^10 = $54.0709047493998
Therefore, we have:
Fair price of the stock = Total of dividends from year 1 to year 10 + PV of share price at year 10 = $25.74793130208810 + $54.0709047493998 = $79.82
b. Assuming the market price of the stock is $70, what is the expected return?
This can be calculated using the dividend discount model formula as follows:
P = D1 / (r - g) ............................ (1)
Where,
P = Market price of the stock = $70
D1 = Next dividend = Current dividend * (100% + Dividend growth rate in perpetuity) = $2 * (100% + 4%) = $2.30
r = Expected return = ?
g = Dividend growth rate in perpetuity = 4%, or 0.04
Substituting the values into equation (1) and solve for r, we have:
70 = 2.30 / (r - 0.04)
70(r - 0.04) = 2.30
70r - 2.80 = 2.30
70r = 2.30 + 2.80
70r = 5.10
r = 5.10 / 70
r = 0.0729, or 7.29%
Therefore, the expected return is 7.29%.
Sales-Value-at-Split-off Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows: Direct materials $67,900 Direct labor 34,000 Overhead 25,500 At the split-off point, a batch yields 1,400 barlon, 2,600 selene, 2,500 plicene, and 3,500 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $20 per unit, plicene sells for $26 per unit, and corsol sells for $35 per unit.
Required:
Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.
Allocated Joint Cost
Barlon $
Selene
Plicene
Corsol
Total $
Answer:
Alomar Company
Allocation of Joint Costs:
Barlon = $10,270
Selene = $25,431
Plicene = $31,789
Corsol = $59,910
Total = $127,400
Explanation:
a) Data and Calculations:
Joint costs:
Direct materials $67,900
Direct labor 34,000
Overhead 25,500
Total joint costs $127,400
Joint Products Barlon Selene Plicene Corsol Total
Batch output units 1,400 2,600 2,500 3,500 10,000
Selling price per unit $15 $20 $26 $35
Sales value $21,000 $52,000 $65,000 $122,500 $260,500
Allocation of Joint Costs:
Barlon = $10,270 ($21,000/$260,500* $127,400)
Selene = $25,431 ($52,000/$260,500* $127,400)
Plicene = $31,789 ($65,000/$260,500* $127,400)
Corsol = $59,910 ($122,500/$260,500* $127,400)
Corporations whose stock is traded in a public market must report earnings per share on their a.balance sheet. b.statement of stockholders' equity. c.Earnings per share is not reported on the financial statements. d.income statement.
Answer:
d.income statement.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.
Generally, it is considered to be one of the most complicated and expensive type of organization. Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity. Also, corporations can be sold through stocks or shares, as a public entity.
A corporation that its stock is being traded in a public market is required to report earnings per share on their income statement.
On October 1, Swifty's Painting Service borrows $101000 from National Bank on a 3-month, $101000, 4% note. The entry by Swifty's Painting Service to record payment of the note and accrued interest on January 1 is
Answer:
Dr notes payable $101,000
Dr interest payable $1010
Cr cash $102,010
Explanation:
The accrued interest to be recognized on 31 December after 3 months have passed since the borrowing took place is computed thus:
3-month accrued interest=principal borrowed*interest rate*3/12
principal borrowed=$101000
interest rate=4%
3-month accrued interest=$101,000*4%*3/12
3-month accrued interest=$1,010
Initially, when the borrowing was taken, the note payable account would have been credited with $101,000 while cash was debited since cash as an asset has increased.
On December 31, we would record interest of $1,010 as expense while interest payable is credited
Amount paid at maturity=principal+interest
Amount paid at maturity=$101,000+$1010
Amount paid at maturity=$102,010
Clampett, Incorporated, converted to an S corporation on January 1, 2020. At that time, Clampett, Incorporated, had cash ($40,000), inventory (FMV $60,000, basis $30,000), accounts receivable (FMV $40,000, basis $40,000), and equipment (FMV $60,000, basis $80,000). In 2021, Clampett, Incorporated, sells its entire inventory for $60,000 (basis $30,000). Assume the corporate tax rate is 21 percent. Clampett, Incorporated's taxable income in 2021 would have been $1,000,000 if it had been a C corporation. How much built-in gains tax does Clampett, Incorporated, pay in 2021
Answer:
$2,100
Explanation:
Particulars Fair market value Basis Differences
Inventory $60,000 $30,000 $30,000
Account receivables $40,000 $40,000 $0
Equipment $60,000 $80,000 ($20,000)
Taxable gain $10,000
Tax rate 21%
Built in gains tax $2,100
So therefore, the built-in-gains tax that Clampett (Incorporated) will pay in 2021 is $2,100.
A year ago, an investor bought shares of a mutual fund at $ per share. This year, the fund has paid dividends of per share and had a capital gains distribution of $ per share. a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $. b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $ per share.
Complete Question
1. One year ago, an investor bought 200 shares of a mutual fund at $8.50 per share. Over the past year, the fund has paid dividends of $.90 per share and had a capital gains distribution of $.75 per share.
a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $9.10.
b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $8.75 per share.
Answer:
a. Holding period returns = 26.47%
b. Holding period returns = 27.41%
Explanation:
a) Data and Calculations:
Number of shares bought = 200
Price per share of the mutual fund = $8.50
Dividends per share = $0.90
Capital gains distribution per share = $0.75
Total initial investment cost = $1,700 (200 * $8.50)
Total dividends = $180 (200 * $0.90)
Total capital gains distribution = $150 (200 * $0.75)
Net asset value = $9.10 per share
Total net asset value = $1,820 (200 * $9.10)
Holding period returns:
Dividends $180
Capital gains $150
Price change $120
Total returns = $450
Holding period returns = $450/$1,700 * 100 = 26.47%
Reinvestment of dividends and capital gains distribution:
Initial investment cost = $1,700
Reinvestment cost = 330
Total investment costs = $2,030
Number of additional shares = $330/$8.75 = 38 shares
Total returns = $466 (238 * $9.10) - (200 * $8.50)
Holding period returns in percentage = $466/$1,700 * 100 = 27.41%
Consumers buy goods or services they want or need.
True
False
Answer:
True
Explanation:
n Corporation budgeted fixed manufacturing costs of $34,000 during 2020. Other information for 2020 includes: The budgeted denominator level is 2,000 units. Units produced total 1,800 units. Units sold total 1,200 units. Beginning inventory was zero. The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold. The production−volume variance is ________. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
Answer:
The answer is "[tex]\$3,400[/tex]"
Explanation:
Using formula:
[tex]\text{Production Volume Variance = Budgeted O/H cost -Absorbed cost}[/tex]
[tex]\text{Budgeted O/H cost} = 34000\\\\\text{O/H Rate = Bdt OH/Bdt units}\\\\[/tex]
[tex]= \frac{34000}{2000}\\\\= \frac{34}{2} \\\\ = 17[/tex]
[tex]\text{Absorbed cost }= 1800\ units \times 17 \ = 30,600\\\\Variance = 34,000 -30,600 = 3,400[/tex]
Black Corporation had a 1/1/17 balance in the Allowance for Doubtful Accounts of $21,000. During 2017, it wrote off $15,120 of accounts and collected $4,410 on accounts previously written off. The balance in Accounts Receivable was $420,000 at 1/1 and $504,000 at 12/31. At 12/31/17, Black estimates that 5% of accounts receivable will prove to be uncollectible. What should Black report as its Allowance for Doubtful Accounts at 12/31/17
Answer:
$25,200
Explanation:
Calculation to determine What should Black report as its Allowance for Doubtful Accounts at 12/31/17
Using this formula
12/31/17 Allowance for Doubtful Accounts=12/31 Accounts Receivable Balance*Estimated Uncollectibles accounts receivable percentage
Let plug in the formula
12/31/17 Allowance for Doubtful Accounts=$504,000*5%
12/31/17 Allowance for Doubtful Accounts=$25,200
Therefore What Black should report as its Allowance for Doubtful Accounts at 12/31/17 is $25,200
Larance Detailing's cost formula for its materials and supplies is $1,910 per month plus $10 per vehicle. For the month of November, the company planned for activity of 86 vehicles, but the actual level of activity was 51 vehicles. The actual materials and supplies for the month was $2,430. The materials and supplies in the flexible budget for November would be closest to:
Answer:
$2,420
Explanation:
Calculation to determine what The materials and supplies in the flexible budget for November would be closest to:
Using this formula
Cost = Fixed cost + (Variable cost per unit × q)
Let plug in the formula
Cost= $1,910 + $10 × 51
Cost= $2,420
Therefore The materials and supplies in the flexible budget for November would be closest to:$2,420
Gain contingencies usually are recognized in a company's income statement when: Multiple Choice The gain is reasonably possible and the amount is reasonably estimable. The gain is certain The amount is reasonably estimable. The gain is probable and the amount is reasonably estimable.]
Answer: The gain is certain
Explanation:
A Gain contingency means that the company stands to make a gain in future if a certain event happens such as the company winning a lawsuit that would result in a good settlement figure for them.
According to U.S. GAAP, gain contingencies are not to be recognized unless it is certain that the gain is coming. If the gain is not certain and is recorded, the income is considered overstated.
Lore Co. changed from the cash basis to the accrual basis of accounting during 2005. The cumulative effect of this change should be reported in Lore's 2005 financial statements as a Group of answer choices Prior period adjustment resulting from the correction of an error. Prior period adjustment resulting from the change in accounting principle. Adjustment to retained earnings for an accounting principle change. Component of income after extraordinary item.
Answer: Prior period adjustment resulting from the correction of an error.
Explanation:
The Cash basis method is not acceptable under both IFRS and U.S. GAAP accounting principles and these are the principles followed by the majority of the world so Lore Co. was using the cash basis in violation of both conventions which means that their accounting records before the change are considered wrong and full of errors.
In changing to the acceptable principles, they are correcting that error and need to adjust prior periods for that error as well.
Sales revenue $440,000 Advertising expense 60,000 Interest expense 10,000 Salaries expense 55,000 Utilities expense 25,000 Income tax expense 45,000 Cost of goods sold 180,000 What is operating income
Answer:
Lake's operating income is $120000
Explanation:
Operating income is the income generated by the operations of company less its operating cost. Another name that is used for operating income is Earnings before interest and tax (EBIT). The charges or income relating to non operating or financing activities is not included in the operating income and nor is the tax deduction included.
The formula for operating income = Sales - Cost of Sales - operating expenses.
The operating expenses here, are = Advertising + Salaries + Utilities
Thus, operating expenses = 60000 + 55000 + 25000 = $140000
The Operating Income = 440000 - 180000 - 140000 = $120000
Operational income is calculated as follows: sales, cost of sales, and operational expenditures.
Here, the running costs are calculated as follows: marketing + salaries + utilities
Operating expenditures thus equal $60,000 plus $55,000 plus $25,000 for a total of $140000.
Operating Income: ($120000) = (440,000 - 188,000 - 148,000)
An accounting concept known as operational income assesses the amount of profit generated by a company's activities after operating costs like salaries, depreciation, and cost of goods sold (COGS) have been subtracted.
Operating income, also known as income from operations, is calculated by deducting all operating costs from a company's gross income, which is equal to total sales less COGS. Operating costs are those incurred by a business during regular business operations and include things like office supplies and electricity.
Learn more about operating income here:
https://brainly.com/question/32545534
#SPJ2
An organization with customer-focused design with the inverted organization structure puts the empowered front-line workers at the top of the pyramid. A good example of this form of organization includes _____.
Answer:
tellers at JP Morgan Chase branches.
Explanation:
The organization i.e. customer focused along with it, it is inverted organization that empowered the front line workers at the upper level of the pyramid so this organization form represent the example of the tellers at the branches of JP Morgan chase where the same thing happen
So the same is to be considered
oetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 30,000 Annual cash inflows $ 6,000 Salvage value of equipment $ 0 Life of the investment 15 years Required rate of return 10 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The internal rate of return of the investment is closest to:
Answer:
10.25%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow = cash inflow - cash outflow
cash outflow = depreciation expense
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
$30,000 / 15 = $2000
Cash flow = $6000 - 2000 = $4000
Cash flow in year 0 = $-30,000
Cash flow in year 1 to 15 = 4,000
IRR = 10.24%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Question Help At the Wild Cat Group Company, the cost of the library and information center has always been charged to the various departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information center costs. Total library and information center costs are $213,000. Department A B C Number of employees 145 540 140 Number of engineers 0 85 40 If the number of employees is considered the cost driver, what amount of library and information center costs will be allocated to
Answer:
$37,436.36
Explanation:
The computation of the amount of library and information center costs will be allocated to department A is shown below;
= Total library and information center costs × department A employees ÷ total number of employees
= $213,000 × 145 ÷ (145 + 540 + 140)
= $213,000 × 145 ÷ 825
= $37,436.36
hence, the amount would be $37,436.36
what are the name of the 7 contents
Answer:
Africa, Antartica, Dababy Land
Explanation:
g granted options on January 1, 2021, that permit executives to purchase 23 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $20 per share. The fair value of the options, estimated by an appropriate option pricing model, is $6 per option. No forfeitures are anticipated. The options are exercised on April 2, 2024, when the market price is $23 per share. By what amount will VF's shareholder's equity be increased when the options are exercised
Answer:
$460
Explanation:
Calculation to determine what amount will VF's shareholder's equity be increased when the options are exercised
First step is to calculate the fair value of award using this formula
Fair value of award=Fair value per option×Options granted
Let plug in the formula
Fair value of award=$138
Based on the above calculation the amount of $138 million total compensation will be expensed equally over the vesting period of 3 years thereby increasing the balance in the PAID-IN CAPITAL-STOCK OPTIONS ACCOUNT
Dr Cash $460
($20 exercise price × 23 million shares)
Dr Paid-in capital - stock options (account balance)138
(6*23)
Cr Common stock 23
(23 million shares at $1 par per share)
Cr Paid-in capital—excess of par (remainder)575
Now let calculate the Increase in shareholder's equity
Increase in shareholder's equity=$575 + $23 - $138
Increase in shareholder's equity= $460
Therefore The amount that VF's shareholder's equity will increased when the options are exercised is $460
Clara Inc. budgets to sell 10,400 units in April, 13,000 unit in May, and 16,100 units in June. The company maintains an ending finished goods inventory equal to 20% of budgeted sales in units for the next month. April 1 beginning inventory is projected to be 2,080 units. How many units will the company produce in May
Answer:
16,720 units
Explanation:
Production Budget = Budgeted Sales + Budgeted Closing inventory - Budgeted Opening inventory
= 16,100 + 3,220 - 2,600
= 16,720 units
the company produce in May 16,720 units