Enrique Industries purchased and consumed 50,000 gallons of direct material that was used in the production of 11,000 finished units of product. According to engineering specifications, each finished unit had a manufacturing standard of five gallons. If a review of Enrique's accounting records at the end of the period disclosed a material price variance of $5,000U and a material quantity variance of $3,000F, what is the actual price paid for a gallon of direct material?
A. $0.70.
B. $0.50.
C. $0.60.
D. None of the answers is correct.
E. Not enough information to judge.
Answer: A
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On January 1, 2018, Tyson Manufacturing Corporation purchased a machine for $40,000,000. Tyson's management expects to use the machine for 33,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $47,000. The machine was used for 4000 hours in 2018 and 5500 hours in 2019. What is the depreciation expense for 2018 if the corporation uses the units-of-production method of depreciation? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A) $4,842,800 B) $13,333,333 C) $6,658,850 D) $4,848,480
On January 1, 2019, First Street Sales issued $38,000 in bonds for $15,700. These are six-year bonds with a stated interest rate of 16% that pay semiannual interest. First Street Sales uses the straight-line method to amortize the Bond Discount. Immediately after the issue of the bonds, the ledger balances appeared as follows:
After the first interest payment on June 30, 2019, what is the balance of Discount on Bonds Payable? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A) debit of $20,442
B) debit of $22,300
C) debit of $24,158
D) credit of $1858
Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting; (2) ________; (3) joint venture; and (4) direct investment.
A. collateral venture B. microfinancing C. franchising D. macrofinancing E. licensing
Administered prices are prices agreed to by competing firms in a market.
Answer the following statement true (T) or false (F)