Answer:
a. Number of years = 13 years
b. Interest rate = 8%
Explanation:
a. Present value = $289664
Interest rate = 10%
Future value = $1000000
Future Value = Present Value (1 + r)^n
1000000 = 289664 (1 + 10%)^n
(1 + 10%)^n = 1000000 / 289664
(1 + 10%)^n = 3.45227
(1.10)^n = 3.45227
Now solve for the n by taking ln both side.
So, n = 13
Thus, number of years = 13 years
b. Future value = 1000000
Present value = 250249
Time = 18 years
Future Value = Present Value (1 + r)^n
1000000 = 250249 (1 + r)^18
(1 + r)^18 = 1000000 / 250249
(1 + r)^18 = 3.99602
Now solve for the value of r.
Thus, r = 8%
Interest rate = 8%
Hyundai's Assurance program empathized with American consumers during uncertain financial times, helping to create a psychological and emotional:_______
a. brand association.
b. differentiation strategy.
c. consumer response.
d. marketing campaign.
A manufacturer produces two types of computer software, Word processing (W) and Spreadsheet (S), which is offered to two different retail outlets (#1 and #2). The following table shows the maximum price each retail outlet is willing to pay for each individual software product.
Product W Product S
Retail #1 $170 $105
Retail #2 $95 $135
What is the optimal pricing strategy that will maximize revenue for the manufacturer, given the maximum the retail outlets are willing to pay?
a. Bundle both products (W and S) and sell them at $275.
b. Price product W at $95 and Product S at $105.
c. Price product W at $170 and Product S at $170.
d. Price product W at $170 and Product S at $135.
e. Bundle both products (W and S) and sell them at $230.
Answer:
e. Bundle both products (W and S) and sell them at $230.
Explanation:
Calculation to determine the optimal pricing strategy that will maximize revenue for the manufacturer
Using this formula
Optimal pricing=Retail #2 Product W+ Retail #2 Product S
Let plug in the formula
Optimal pricing=$95+$135
Optimal pricing=$230
Therefore based on the above calculation the OPTIMAL PRICING STRATEGY that will MAXIMIZE REVENUE for the manufacturer, given the MAXIMUM the retail outlets are willing to pay will be to BUNDLE BOTH PRODUCTS (W and S) AND SELL THEM AT $230.
Clark's Chemical Company received refundable deposits on returnable
containers in the amount of $100,000 during 2018. Twelve percent of the
containers were not returned. The deposits are based on the container cost
marked up 20%. What is cost of goods sold relative to this forfeiture?
a. $0.
b. $2,000.
c. $10,000.
d. $14,400.
Answer: $10000
Explanation:
The cost of goods sold relative to this forfeiture will be calculated thus:
= (Refundable deposit × percent of not returned) / (1 + Markup percentage on cost)
= ($100000 × 12%) / ( 1 + 20%)
= ($100000 × 0.12) / ( 1 + 0.2)
= $12000 / 1.20
= $10000
The cost of goods sold is $10000
A state is conducting an examination of mortgage loan originator Basil Thyme. During the examination, the agency is authorized to do all of the following, except:a. Administer oaths or affirmationsb. Control access to Basil’s officec. Subpoena witnessesd. Require production of relevant documents
Answer: B. Control access to Basil’s office.
Explanation:
During the conduct of the examination of mortgage loan originator Basil Thyme, the agency is authorized to administer oaths or affirmations, subpoena witnesses and require production of relevant documents.
The agency cannot control the access to Basil's office. It can only control access to any records or documents of an individual whim is under investigation.
Suppose that the turkey industry is in long-run equilibrium at a price of $5 per pound of turkey and a quantity of 400 million pounds per year. Suppose that WebMD claims that a protein found in turkey will increase your expected lifespan by 2 years. WebMD's claim will cause consumers to demand _____________turkey at every price.
Answer:
The "WebMD's claim will cause consumers to demand ______more_______turkey at every price."
Explanation:
Consumers will tend to demand more turkey in order to increase their expected lifespan by 2 years by consuming more of the protein found in turkey as claimed by WebMD. This implies that there will a new equilibrium as the old equilibrium shifts outward to match the increased demand by consumers of turkey. This claim may trigger demand and supply to exceed the annual 400 million pounds equilibrium at $5 per pound.
The following information pertains to Trenton Glass Works for the year just ended.
Budgeted direct-labor cost: 70,000 hours (practical capacity) at $16 per hour
Actual direct-labor cost: 80,000 hours at $17.50 per hour
Budgeted manufacturing overhead: $997,500
Actual selling and administrative expenses: 439,000
Actual manufacturing overhead:
Depreciation $ 233,000
Property taxes 23,000
Indirect labor 80,000
Supervisory salaries 202,000
Utilities 58,000
Insurance 32,000
Rental of space 301,000
Indirect material (see data below) 79,000
Indirect material:
Beginning inventory, January 1 48,000
Purchases during the year 95,000
Ending inventory, December 31 64,000
Calculate the overapplied or underapplied overhead for the year. (Round your intermediate calculations to 2 decimal places.)
Answer:
Over-applied Overhead $134,000
Explanation:
The computation of the overhead applied or under applied overhead is given below:
Depreciation $233,000
Property tax $21,000
indirect labor $80,000
Supervisory salaries $202,000
utilities $58,000
Insurance $32,000
Rental of space $301,000
Indirect material $79,000
Total OH incurred $1,006,000
OH applied $1,140,000
(80000 hours at 14.25 per hour) ($997,500 ÷ 70,000)
Over-applied Overhead $134,000
Could anyone help with this question?
Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $102.335 million Cash of $8.040 million Total Assets of $165.097 million Retained Earnings of $35.132 million. What was the Digby Corporation's common stock
Answer:
$27.63 million
Explanation:
Total equity = Common stock + Retained earnings
Common stock = Total equity - Retained earnings
Common stock = (Total assets - Total liabilities) - Retained earnings
Common stock = ($165.097 million - $102.335 million) - $35.132 million
Common stock = $62.762 million - $35.132 million
Common stock = $27.63 million
What type of plan does a property manager implement to manage renters who do NOT pay their rent in a timely way
Answer:
collection plan
Explanation:
The rent collection plan is a system that is used for the enforcement of rent, in terms of late rent payment as well as lease terms. This is more than just telling the tenant when the rent is due. It has all of the information on all the ways that rent could be paid and also the repercussions for late rent payment or a situation whereby the rent is not even paid at all.
For each of the following sentences, select the phrase or group of words that best completes the statement. Earnings per share Dividend yield ratio Dividend payout ratio Return on assets ratio Return on common stockholders' equity ratio
Answer:
Note See complete and organized question as attached as picture below
1. Dividend yield ratio
Correct phrase: Relationship between dividends and the market price of a company's stock.
2. Dividend payout ratio
Correct phrase: Percentage of earnings paid out as dividends.
3. Return on assets ratio
Correct phrase: Measure of a company's success in earning a return for all the providers of the capital.
4. Return on common stockholders' equity ratio
Correct phrase: Measure of a company's success in earning a return for the common stockholders.
Gilmore, Inc., had equity of $135,000 at the beginning of the year. At the end of the year, the company had total assets of $290,000. During the year, the company sold no new equity. Net income for the year was $29,000 and dividends were $3,400. a. What is the sustainable growth rate for the company
Answer:
A. 18.96%
B. 18.96%
C. 15.94%
Explanation:
A. Calculation to determine the sustainable growth rate for the company
First step is to calculate the Ending equity
Ending equity = 135,000 + 29,000 -3,400
Ending equity=$160,600.
Second step is to calculate the return on equity
Return on equity =29,000/160,600
Return on equity=0.18057285
Third step is to calculate the retention ratio
Retention ratio =(Net income- dividends) / Net income
Retention ratio= (29,000-3400) / 29,000
Retention ratio=25,600 /29,000
Retention ratio=0.88275862.
Now let calculate the Sustainable growth rate using this formula
Sustainable growth rate = (Return on equity *Retention ratio) / [1-(Return on equity*retention ratio)]
Let plug in the formula
Sustainable growth rate=(0.18057285*0.88275862)/ [1-(0.18057285*0.88275862)]
Sustainable growth rate=0.15940224/ [1-0.15940224]
Sustainable growth rate=0.1896*100
Sustainable growth rate=18.96%.
b. Calculation to determine the sustainable growth rate if you use the formula ROE band beginning of period equity
First step is to calculate the return on equity using beginning of the period equity
Return on equity using beginning of the period equity=$29,000 /135,000
Return on equity using beginning of the period equity=0.21481481.
Now let calculate the sustainable growth rate if you use the formula ROE band beginning of period equity
roe * b = 0.21481481*0.88275862
ROE band=0.1896*100
ROE band=18.96%.
c.return on equity using ending of period equity = 29,000/160,600
=>0.18057285
roe*b=>0.18057285*0.88275862
=>0.1594
=>15.94%.
The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory.
Work in Process Inventory
Beginning WIP 5,200
Direct materials 47,800
Direct labor 30,300
Applied Overhead 16,500
Total Manufacturing Costs 99,800
To Finished Goods ?
Ending WIP 10,300
The cost of units transferred to finished goods is:_________
Answer:
the cost of units transferred to the finished goods is $89,500
Explanation:
The computation of the cost of units transferred to the finished goods is shown below:
Cost of units transferred to finished goods
= Beginning WIP + Direct materials+ Direct labour + Applied overheads-Ending WIP
= $5,200 + $47,800 + $30,300 + $16,500 - $10,300
= $89,500
Hence, the cost of units transferred to the finished goods is $89,500
1. Given the following demand and supply functions Qd = 500 - 3P Qs = 100 + 5P Calculate; i. The equilibrium price and the equilibrium quantity ii. The consumer surplus iii. The producer surplus)R
Given:
The demand and supply functions are:
[tex]Q_d=500-3P[/tex]
[tex]Q_s=100+5P[/tex]
To find:
i. The equilibrium price and the equilibrium quantity.
ii. The consumer surplus .
iii. The producer surplus.
Explanation:
(i) At equilibrium, the demand and supply are equal. So, equating both functions, we get
[tex]500-3P=100+5P[/tex]
[tex]500-100=3P+5P[/tex]
[tex]400=8P[/tex]
Divide both sides by 8, we get
[tex]\dfrac{400}{8}=P[/tex]
[tex]50=P[/tex]
Putting [tex]P=50[/tex] in the demand function, we get
[tex]Q_d=500-3(50)[/tex]
[tex]Q_d=500-150[/tex]
[tex]Q_d=350[/tex]
Therefore, the equilibrium price is 50 and the equilibrium quantity is 350.
(ii)
The area under the demand curve and above the equilibrium price is known as consumer surplus. It is represent by the green area in the below figure.
The area of a triangle is:
[tex]A=\dfrac{1}{2}\times base \times height[/tex]
So, the area of consumer surplus is:
[tex]A=\dfrac{1}{2}\times 50 \times (500-350)[/tex]
[tex]A=25 \times 150[/tex]
[tex]A=3750[/tex]
Therefore, the consumer surplus is 3750.
(iii)
The area above the supply curve and below the equilibrium price is known as producer surplus. It is represent by the purple area in the below figure.
So, the area of producer surplus is:
[tex]A=\dfrac{1}{2}\times 50 \times (350-100)[/tex]
[tex]A=25 \times 250[/tex]
[tex]A=6250[/tex]
Therefore, the producer surplus is 6250.
Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not.
a. In a small town, there are two providers of broadband Internet access: a cable company and the phone company. The Internet access offered by both providers is of the same speed.
b. The government has granted a patent to a pharmaceutical company for an experimental AIDS drug. That company is the only firm permitted to sell the drug.
c. Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care who manufactures their socks.
d. In a major metropolitan area, one chain of coffee shops has gained a large market share because customers feel its coffee tastes better than that of its competitors.
Answer:
1. not a competitive market
2. not a competitive market
3. competitive market
4. not a perfectly competitive market
Explanation:
To answer this question, i will first start by explaining what a competitive market is and the assumption of a perfectly competitive market as well
A competitive market is a market that has many producers and buyers of a particular product. The producers are usually in a competition to meet up with the needs of the buyers.
some assumptions of the market:
large sellers/producersidentical or homogenous goodsfree entryno discriminationperfect knowledgea. in this question this is not a competitive market. the reason is simple. It says that there are only two providers of internet. So there are no enough producers or sellers
b. The government has limited entry into this market by giving patent to only one pharmaceutical company.
c. yes this market is competitive since there are many producers of the product and the consumers regard the products as identical or homogenous. this meets with all of the assumptions of a perfectly competitive market.
d. the product here is not homogenous or identical as this is not a perfectly competitive market since buyers would prefer to buy the coffee that tastes better and leave that of the competitors
thank!
who has given general principle of management?
Answer:
I think it's " Henri Fayol's "
Answer:
14 management principle of Henri Fayol
Explanation:
1. Division of work or division labor.
2. Balancing Authority and responsibility.
3. Discipline.
4. Unity of command.
5. Unity of Direction.
6. Subordination of individual interest to the general interest.
7. Remuneration.
8. Centralization.
9. Scalar chain.
10. Order.
11. Equity.
12. Stability of tenure of personal.
13. Initiative.
14. Esprit de corps.
Problems and Applications Q11 You are the curator of a museum. The museum is running short of funds, so you decide to increase revenue. When should you raise the admission price in order to increase revenue
Answer: Only when demand is inelastic
Explanation:
For a product that has an inelastic demand, the demand of a buyer with regards to a product has minimal changes when when there is a change in price. In such case, an increase in the price will lead to an increase in revenue.
On the other hand, for a product that has an elastic demand, there will be a greater change in the demand of the buyer when when there is a change in price. In such case, an inrease in the price will lead to an reduction in revenue as buyers will go for other products.
Therefore, the admission price should be increased when demand is inelastic in order to increase revenue.
Everything else equal, if the United States runs a large foreign trade deficit, the financing of the deficit will: a. increase government subsidies. b. increase interest rates. c. decrease sales of Treasury securities. d. increase the money supply. e. decrease tax revenue.
Answer: decrease tax revenue
Explanation:
A trade deficit occurs when the import of a country's is more than the export of the country for a given period of time period. The main cause is when there's an imbalance between the savings of a country and the investment rates.
In this case, financing the deficit will lead to the reduction in the tax revenue. When part of the tax revenue gotten from economic agents are used in the finance of the deficit, there'll be a reduction in the tax revenue.
Suppose independent truckers operate in a perfectly competitive constant cost industry. If these firms are earning positive economic profits, what happens in the long run to the following: The price of trucking services
Answer:
The price of trucking services would fall until equilibrium prices are reached. Only normal profit would be earned in the long run
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Q2. With the help of book please elaborate What is the difference between a corporate strategy and a competitive strategy? Give three examples of each. (Words limit up to 150)
Answer and Explanation:
Competitive and corporate strategy are very important for the success and good management of a business. Competitive strategy is one that allows a company to promote elements capable of making it different from its competitors. Examples of competitive strategy are offering lower prices, higher quality products and negotiation between customers.
Corporate strategy, on the other hand, is one that allows the company to generate elements that will increase its profit and strengthen its capacity to be more competitive. Examples of this type of strategy are the acquisition of subsidiary companies, the merger of competing companies and the restructuring of the company.
For each transaction:
a. analyze the transaction using the accounting equation
b. record the transaction in journal entry form
c. post the entry using T-accounts to represent ledger accounts.
1. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value in exchange for common stock.
2. On May 21, Elegant Lawns purchases office supplies on credit for $500.
3. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
4. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.
Answer:
Elegant Lawns
a. Analysis of transactions using the accounting equation:
1. May 15, Assets Cash $7,000 Equipment $3,000 Equity: Common stock $10,000
2. May 21, Assets: Office supplies $500 Liabilities: Accounts Payable $500
3. May 25, Assets: Cash $4,000 Equity: Service Revenue $4,000
4. May 30, Assets: Cash $1,000 Equity: Service Revenue $1,000
b. Journal Entries:
Date Account Titles Debit Credit
1. May 15, Assets: Cash $7,000
Assets: Equipment $3,000
Equity: Common stock $10,000
2.
May 21, Assets: Office supplies $500
Liabilities: Accounts Payable $500
3. May 25, Assets: Cash $4,000
Equity: Service Revenue $4,000
4. May 30, Assets: Cash $1,000
Equity: Service Revenue $1,000
c. T-accounts:
Cash
Date Account Titles Debit Credit
1. May 15 Common stock $7,000
3. May 25, Service revenue 4,000
4. May 30, Service revenue 1,000
Equipment
Date Account Titles Debit Credit
1. May 15 Common stock $3,000
Office Supplies
Date Account Titles Debit Credit
2. May 21, Accounts Payable $500
Common Stock
Date Account Titles Debit Credit
1. May 15 Cash $7,000
1. May 15 Equipment 3,000
Accounts Payable
Date Account Titles Debit Credit
2. May 21, Office supplies $500
Service Revenue
Date Account Titles Debit Credit
3. May 25, Cash $4,000
4. May 30, Cash 1,000
Explanation:
a) Data and Analysis with Accounting Equation:
1. May 15, Assets Cash $7,000 Equipment $3,000 Equity: Common stock $10,000
2. May 21, Assets: Office supplies $500 Liabilities: Accounts Payable $500
3. May 25, Assets: Cash $4,000 Equity: Service Revenue $4,000
4. May 30, Assets: Cash $1,000 Equity: Service Revenue $1,000
You can borrow and lend at the interest rates of 7.00% in the US and 5.00% in Canada. Based on Interest Rate Parity, the forward premium for CAD should be exactly equal to: Group of answer choices 1.90% - 1.87% 1.02% 98.11%
Answer:
1.90%
Explanation:
Note that that CAD exchange rate would be in terms of how many US dollars can be exchanged for 1 CAD, which means that the formula for forward premium would be stated in terms of US dollars, I mean the US$ as the numerator and CAD's interest rate would be the denominator
the forward premium for CAD=((1+US interest rate)/(1+Canada interest rate))-1
the forward premium for CAD=((1+7%)/(1+5%))-1
the forward premium for CAD=1.90%
ABC Company operates two divisions with the following operating information for the month of May:
Division 1: sales, $128,000; operating income, $39,680; operating assets, $320,000.
Division 2: sales, $84,000; operating income, $42,336; operating assets, $420,000.
ABC Company expects a minimum return of 10% should be earned from all investments.
Required:
Prepare ABC Company’s ROI analysis using the DuPont model for each division.
What will happen when the country's
currency is undervalued?
Answer:
Ur answer is that When the U.S. dollar is undervalued, the cost of a basket of goods in the United States is lower than the cost in Mexico when evaluated at the current exchange rate. To a U.S. tourist, Mexican goods and services would seem more expensive on average. Thus an undervalued currency will buy less in other countries.
Explanation:
Hope i helped , have a nice day , and if it is possible to give me brainlest please , thank you in advance :)
Harding Enterprises has developed a new product called the Gillooly Shillelagh. The market demand for this product is given as follows:
Q= 240 - 4P
a. At what price is the price elasticity of demand equal to zero?
b. At what price is demand infinitely elastic?
c. At what price is the price elasticity of demand equal to one?
d. If the shillelagh is priced at $40, what is the point price elasticity of demand?
Answer:
0
$60
$30
-2
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
the intercept of price on the inverse demand curve = 240 / 4 = $60
The intercept of quantity on the inverse demand curve = 240
Demand is infinitely elastic at the intercept on the price axis = 0
Demand is completely inelastic at the intercept on the quantity axis = 60 Demand is unit elastic at the half-way point between these two extremes (60 + 0) / 2 = 30
Point elastic demanded = (40/80) (-4) = -2
Jane has discovered that she is bored and frustrated working for others. She wants to open a business where she alone will have control and the least interference from government regulation. Which form of business would best meet her needs
Answer:
Sole proprietorship.
Explanation:
A sole proprietorship is a type of business that is owned by a single person and as such their profits are taxed once as personal income tax. It is a type of business that is typically owned by an individual or one person and as such is solely responsible for its debts.
In this scenario, Jane discovers she is bored and frustrated working for other business owners and as a result, she wants to open her own business, wherein, she alone will have control over the business and with the least interference of any form through government regulation. Thus, the form of business which would best meet Jane's needs is a sole proprietorship business because it is offers an exclusive ownership and control to its owner while preventing third-party interference.
Which economic concept helps explain the changing demand for jewelry?
A. fungibility
b. non-excludability
c. substitution
d. elasticity
Answer:
A.fungibility is a economic concept which helps explain the changing demand for jewelry.
As
Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets .
Monopoly in the competitive environment a. is enjoyed by few organizations as sole suppliers of a good or service. b. is typical of public utilities -- even more so now than twenty years ago. c. cannot be achieved temporarily even through the use of patents and similar legal devices. d. is the logical extension of a firm's control of its production and labor resources. e. is, all in all, the most common type of competition in the U.S. market.
Answer:
b
Explanation:
and services.
An example of a monopoly is a utility company
A natural monopoly occurs due to the high start-up costs or a large economies of scale.
Natural monopolies are usually the only company providing a service in a particular region
Because the demand curve for a monopoly is downward sloping, marginal revenue is less than price. As prices fall, more units of the product are bought.
In a monopoly When the average cost is falling, the marginal cost lies below the average cost. If the government sets price to be equal to marginal cost, which lies below the average cost, the monopoly would incur losses.
Mendez Company is considering a capital project that costs $16,000. The project will deliver the following cash flows: Year 1 Year 2 Year 3 Year 4 Year 5 $8,000 $6,000 $5,000 $6,000 $5,000 Using the incremental approach, the payback period for the investment is:
Answer:
2.4 years
Explanation:
Years Cash Cumulative Cashflow
1 8000 8000
2 6000 14000
3 5000 19000
4 4000 25000
5 5000 30000
30000
Payback period = 2 years + (16,000 - 14,000) / 5,000
Payback period = 2 years + 0.4 years
Payback period = 2.4 years
Five welding jobs are waiting to be processed. Their processing times and due dates are given below. Using the critical ratio dispatching rule, in which order should the jobs be processed
Job Processing Time (days) Job due date (days)
A 4 7
B 2 4
C 8 11
D 3 5
E 5 11
Answer:
Order of processing the jobs:
Job Critical Ratio
C 1.375
D 1.667
A 1.75
B 2.0
E 2.2
Explanation:
a) Data and Calculations:
Job Processing Job due Critical
Time (days) date (days) Ratio
A 4 7 1.75 (7/4)
B 2 4 2.0 (4/2)
C 8 11 1.375 (11/8)
D 3 5 1.667 (5/3)
E 5 11 2.2 (11/5)
b) The critical ratio (CR) dispatching indicates the priority sequencing that should be adopted to process work at a work center. The first process is to create the CR priority index number, which is obtained from the formula of due days divided by the processing days. Therefore, the job with the lowest CR is scheduled first.
In 20X4, Bosh Corporation had income of $60,000 using absorption costing. Beginning and ending inventories were 13,000 and 8,000 units, respectively. The fixed manufacturing overhead cost was $4.00 per unit. What was the net income using direct/variable costing
Answer:
Net income under variable costing $80,000
Explanation:
The computation of the net income using direct/variable costing is shown below:
Net income under absorption costing $60,000
Add fixed cost under applied $20,000
Net income under variable costing $80,000
Working
Beginning inventory 13000
Less ending inventory -8000
Decrease in inventory 5000
Now under applied inventory $20,000
