Answer: Theoretical velocity = 5 units per hour.
Actual velocity = 4 units per hour.
Explanation:
Based on the information given in the question, the theoretical velocity will be:
Firstly, we'll calculate the theoretical cycle time which will be:
= (50,000 hours x 60 minutes per hour) / 250,000 units
= 12 minutes per unit
Actual cycle time will be:
= (50,000 hours x 60 minutes per hour) / 200,000 units
= 15 minutes per unit
The theoretical velocity:
= 60 minutes / 12 minutes
= 5 units per hour.
2. The e actual velocity in units per hour:
= 60 minutes per hour / 15 minutes per unit
= 4 units per hour
The number of people employed in one country is 230 million, with a total number of unemployed people at 40 million. The total population for the country is 500 million. What is the unemployment rate? Group of answer choices
Answer:
Unemployment rate = 14.81 %
Explanation:
Unemployment is defined as the number of people that are willing and able to work in an economy but that are not able to get employment.
If is used as a measure of the level of economic growth of a country.
Mathematically:
Unemployment rate = (Unemployed) ÷ (Economically active people) *100
Economically active people are employed plus unemployed.
That is 230 million + 40 million = 270 million
Therefore
Unemployment rate = (40/270) * 100
Unemployment rate = 14.81 %
An abundance of utility-focused blogs exist, posting negative information about utilities in general and even about ABC Utility. Which of the following is NOT a wise response to control the negative blogs?
a. Repost the negative blogs that appear in other places, and argue against the content.
b. Create a company sponsored blog and post blogs with useful information.
c. Monitor the blogs to gather information about public perception.
d. Ask the CEO to frequently write a blog post regarding the values and vision of the organization.
Answer:
a
Explanation:
Blogs are a good medium that can be used by firms to disseminate information about their goods and services.
Blogs are also a good way to gather information about the perception of consumers to a company's goods and services
A company can make use of blogs to disseminate positive information about their goods and services by creating a company sponsored blog and post blogs with useful information. It would be and advantage if key personals in the firm frequently write a blog post about the firm e.g. the values and vision of the organization.
MC Qu. 131 At Midland Company's break-even point... At Midland Company's break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The unit sales price is:
Answer:
selling price per unit = $80
Explanation:
Giving the following information:
Company's break-even point of 9,000 units
Fixed costs are $180,000
Total variable costs= $540,000
First, we will calculate the unitary variable cost:
Unitary variable cost= 540,000 / 9,000
Unitary variable cost= $60
Now, the unitary selling price, using the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
9,000 = 180,000 / (selling price per unit - 60)
9,000selling price per unit - 540,000 = 180,000
9,000selling price per unit = 180,000 + 540,000
9,000selling price per unit = 720,000
selling price per unit = 720,000/9,000
selling price per unit = $80
Answer:
$80
Explanation:
The first step is to find the variable cost
= 540,000/9000
= 60
Therefore the unit sales price can be calculated as follows
= 180,000/90,000+60
= 20+60
= $80
Hence the unit sales price is $80
Nieto Company’s budgeted sales and direct materials purchases are as follows.
Budgeted Sales Budgeted D.M. Purchases
January $250,600 $32,200
February 238,100 45,300
March 299,600 38,300
Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.
A) Prepare a schedule of expected collections from customers for March
B) Prepare a schedule of expected payments for direct materials for March.
Answer:
Nieto Company
A) Schedule of expected collections for March:
30% Cash Sales $89,880
Credit Sales $167,307
Total collections for March $257,187
B) Schedule of expected payments for direct materials for March:
40% month of purchase $15,320
60% ffg month $27,180
Total expected payments $42,500
Explanation:
a) Data and Calculations:
January February March Total
Budgeted sales $250,000 $238,100 $299,600
Cash collections:
30% Cash $75,000 $71,430 $89,880
70% Credit $175,000 $166,670 $209,720
Cash collections from credit sales:
Month of sale, 10% $17,500 $16,667 $20,972
Following month, 50% 87,500 83,335
Second month, 36% 63,000
Total collections for March (credit sales) $167,307
Budgeted D.M. Purchases $32,200 $45,300 $38,300
Cash payments:
40% purchase month $12,880 $18,120 $15,320
60% ffg month $19,320 $27,180
Total payments $12,880 $37,440 $42,500
Which of the following is an example of a functional structure? Multiple Choice Fred owns a diner and has three employees. Borrowit Lending has a business division and a consumer division. Shelter Semiconductors has offices in Berlin, Tokyo, Chicago, and London. Leopard Industries has a plastics group, an electronics group, and a transportation group. At Mark’s Furniture, all the carpenters are in one group, and all the upholsterers are in another.
Answer: At Mark’s Furniture, all the carpenters are in one group, and all the upholsterers are in another.
Explanation:
Functional structures refer to the grouping of company departments based on what the labor involved do for the company i.e. their functional expertise.
Mark's company is therefore using a functional structure because it groups its workforce by their functional expertise with carpenters in one group and upholsters in another.
Most companies follow this strategy which is why companies have departments such as accounting, human resources, marketing and production.
Ice Cream Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 2,400 Materials costs $ 14,500 Conversion costs $ 6,600 Percent complete with respect to materials 75 % Percent complete with respect to conversion 20 % Units started into production during the month 11,100 Units completed and transferred to the next department during the month 10,000 Materials costs added during the month $ 173,600 Conversion costs added during the month $ 243,600 Ending work in process inventory: Units in ending work in process inventory 3,500 Percent complete with respect to materials 90 % Percent complete with respect to conversion 30 % The cost per equivalent unit for materials for the month in the first processing department is closest to:
Answer:
Ice Cream Corporation
The cost per equivalent unit for materials for the month in the first processing department is closest to:
= $14.30.
Explanation:
a) Data and Calculations:
Units Materials Conversion
Beginning work in process 2,400 $ 14,500 $ 6,600
Percentage of completion
Beginning work in process 75% 20%
Started into production 11,100
Units in production 13,500
Completed and transferred 10,000
Ending work in process 3,500 90% 30%
Costs added during the month $173,600 $243,600
Total costs of production
Beginning work in process $ 14,500 $ 6,600
Costs added during the month 173,600 243,600
Total costs of production $188,100 $250,200
Equivalent units of production:
Completed and transferred 10,000 10,000 (100%) 10,000 (100%)
Ending work in process 3,500 3,150 (90%) 1,050 (30%)
Equivalent units of production 13,150 11,050
Cost per equivalent unit:
Total costs of production $188,100 $250,200
Equivalent units of production 13,150 11,050
Cost per equivalent unit $14.30 $22.64
1. Define equilibrium.
Answer:
In chemistry:
Chemical equilibrium is defined as the condition in the course of a reversible chemical reaction in which no net change in the amounts of reactants and products occurs
In physics:
Equilibrium is defined as the condition of a system when neither its state of motion nor its internal energy state tends to change with time.
A simple mechanical body is said to be in equilibrium if it experiences neither linear acceleration nor angular acceleration; unless it is disturbed by an outside force, it will continue in that condition indefinitely.
the condition of a system when neither its state of motion nor its internal energy state tends to change with time is called equilibrium.
Hope it is helpful to you
Materials cost per yard: standard, $1.90; actual, $2.04 Standard yards per unit: standard, 4.69 yards; actual, 5.03 yards Units of production: 9,400 Calculate the direct materials price variance. a.$1,316.00 unfavorable b.$6,619.48 unfavorable c.$6,619.48 favorable d.$6,172.04 favorable
Answer:
b.$6,619.48 unfavorable
Explanation:
Calculation to determine the direct materials price variance
First step is to calculate the Total number of actual quantity used
Total number of actual quantity used = 9400×5.03
Total number of actual quantity = 47,282
Now let determine the Material price variance
Using this formula
Material price variance = ( Standard price - Actual price ) × Actual quantity used
Let plug in the morning
Material price variance= ( $1.90 - $2.04 ) × 47,282
Material price variance=-0.14×47,282
Material price variance = -$6,619.48 unfavorable
Therefore the direct materials price variance is
-$6,619.48 unfavorable
You want to have $5 million in real dollars in an account when you retire in 20 years.
The nominal return on your investment is 10 percent and the inflation rate is 3 percent.
What is the real amount you must deposit each year to achieve your goal?
Answer:
The real amount that you must deposit each year to achieve your goal is:
= $54,662.78.
Explanation:
a) Data and Calculations:
Required amount in real dollars = $5 million
Nominal return on investment = 10%
Inflation rate = 3%
Real return on investment = 13% (10 + 3)
From an online financial calculator:
N (# of periods) 20
I/Y (Interest per year) 13
PV (Present Value) 0
FV (Future Value) 5000000
Results
PMT = $54,662.78
Sum of all periodic payments $1,093,255.61
Total Interest $3,906,744.3
If a nail salon hires an additional worker, that worker can service 8 additional customers per day. The average nail service fee is $30. The most the salon would be willing to pay that groomer is
Answer:
Therefore, the salon will pay = $240
Explanation:
Below is the given values:
Service additional worker per day = 8 customers per day
Average fee = $30
The firm would like to pay the groomer up to the amount that is generated by them so the amount generated 30 x 8 = $240
Therefore, the salon will pay = $240
You just sold 900 shares of Alcove stock at a price of $34.08 a share. Last year you paid $39.20 a share to buy this stock. You received dividends totaling $1.04 per share. What is your total capital gain on this investment?a. $5,544 44b. -$3,672c. -$5,544d. -$4,608e. $4,608
Answer:
d. -$4,608
Explanation:
The computation of the total capital gain is shown below:
Total capital gains is
= (End value - Beginning value) × 900 shares
= ($34.08 - $39.20) × 900 shares
= -$4,608
Hence, the total capital gain on this investment is -$4,608
Therefore the option d is correct
And, the same is to be relevant
If you were originally a lender, remain a lender even after a decline in interest rates. Will you get better or worse after the interest rate change? Analyze consumer behavior in the above situation.
Answer:
If the lender rate decline he will be worst of due to consumer buying behavior.
Explanation:
Lenders are creditors and not all creditors are leanders. During a decline in the interest rates goes down and borrowing gets cheaper. The leander will be worse after the interest rates decline. If the interest rate rises or changes the lender may get higher rates.causes of wage rigidity
Answer:
According to the Efficiency-wage theories: High wages paid to the workers' make them more productive, therefore, the firms are reluctant or fail to decrease wages despite of an excess supply of labour.
Which of the following is an important consideration in setting up the proper environment to complete tasks on time?
In general, setting choosing the appropriate atmosphere to execute assignments in time is critical.
Following are the knowing step in which we define how to develop these priorities:
If you want to ensure sure activities are finished on schedule, it is the most crucial factor.This ability to manage one's time is essential for all types of leaders, especially leaders, managers, and coaches. These corporate leaders must have a sound plan, set clear goals, and also be effective.For something like that to happen, people should define goals, focus on the work at hand, create an environment favorable to the activities which need to be done, and eliminate distractions to develop the necessary habits that lead to production.Learn more:
sociocultural environment: brainly.com/question/24244964
Management process with proper coordination & cooperation is important to set up proper environment to complete tasks on time
Task completion on time (effectively) & in best optimum way (efficiently) is inherent goal of process of management.
These proper steps of management should be followed for it :
Planning - Analysing future prospectus Organising - Designing layout Staffing - Choosing personnel Directing - Guiding, motivating, supervising personnel Controlling - Comparing performance with goal at various milestones.Coordination & cooperation imbibed in this process is likely ensure decided tasks completion, effectively & efficiently
The U.S. government could reduce its budget deficit by expanding the income assistance programs. raising the eligible retirement age to receive Social Security benefits. increasing discretionary spending. borrowing funds from abroad.
Answer:
raising the eligible retirement age to receive Social
Explanation:
We can agree that there is a budget deficit in an economy if the government expenditures in the economy are greater than its revenue. The remedy in the face of such an economic problem is either to raise taxes or to decrease the expenditures of the government.
In this question, the way that the US government can reduce the budget deficit is by raising the eligible retirement age of those who are to receive the social security benefits. When this age is increased, it means that less people would be receiving this benefit. Less people would meet the required age for the benefit. By so doing, the government is cutting its expenditures.
the rest of the options in the question would increase the deficit.
Beer Corporation had net income of $216,000, and paid dividends to common stockholders of $43,000 in 2017. The weighted average number of shares outstanding in 2017 was 58,500 shares. Beer Corporation's common stock is selling for $79 per share on the New York Stock Exchange. Calculate Beer Corporation's price earnings ratio. Round answer to one decimal place.
Answer:
21 times
Explanation:
Calculation to determine Beer Corporation's price earnings ratio
First step is to get Calculate the Earning per share ( EPS)
EPS=$216,000 ÷ $58,500
EPS= $3.69
Now let calculate the price earnings ratio
Price earnings ratio= $79 ÷ $3.69
Price earnings ratio= 21 times
Therefore Beer Corporation's price earnings ratio is 21 times
For the month of September, Florida, Inc., incurs a direct materials cost of $12,000 for 7,500 gallons of strawberry lemonade produced in its Mixing Department. It also incurs conversion costs of $6,000 with 80% completed. If the conversion cost per equivalent unit was $1.15 per gallon in August, what is the difference in the conversion cost per equivalent unit between the two months
Answer:
Florida, Inc.
The difference in the conversion cost per equivalent unit between the two months is:
= $0.15.
Explanation:
a) Data and Calculations:
Direct materials cost = $12,000
Production units (gallons of strawberry lemonade) = 7,500
Conversion costs = $6,000
Degree of completion of conversion = 80%
Equivalent units of conversion = 6,000 (7,500 * 80%)
Therefore, the conversion cost per equivalent unit = $1.00 ($6,000/6,000)
The difference in the conversion cost per equivalent unit between the two months is $0.15 ($1.15 - $1.00)
The Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid for months of advertising. How much advertising expense should Law Firm record for the two months ending February 28 under the
a. cash basis
b. accrual basis?
Answer and Explanation:
The computation of the advertising expense that should be record for the two month under following basis is
a. For cash basis
It should be recorded at $2,000
b. For accrual basis
= $2,000 ×2 ÷5
= $800
In this way, it should be determined
And, the same should be relevant
Other things the same , as the price level rises, the real value of money a. falls and the exchange rate rises. b. and the exchange rate fall. c. rises and the exchange rate falls. d. and the exchange rate rise.
Answer:
falls and the exchange rate fall.
Explanation:
Increase in general price level is referred to an inflation.
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
When price level rises, the real value of money decreases
For example, imagine that price of an apple is $5. If you have $100, you can by 20 apples. If price level increases by 100%, $100 would only buy 10 apples. thus, the real value of money decreases
Also exchange rate falls. exchange rate is the rate at which one currency is exchanged for another currency
If price level increases, domestic currency would become cheaper. As a result, exchange rate falls
A 4-year project has an annual operating cash flow of $42,000. At the beginning of the project, $6,000 in net working capital was required, which will be recovered at the end of the project. The firm also spent $21,900 on equipment to start the project. This equipment will have a book value of $5,460 at the end of the project, but can be sold for $6,920. The tax rate is 21 percent. What is the Year 4 cash flow?
Answer:
Total cash flow $54,613
Explanation:
The computation of the year 4 cash flow is given below:
Selling price of equipment $6,920
Book value at year 4 end $5,460
Capital gain $1,460
Tax on capital gain at 21% $306.6
So, net cash flow from the sale of equipment
= $6,920 - $307
= $6,613
Now year 4 cash flow is
Annual operating cash flow $42,000
Release of working capital $6,000
Net cash flow form sale of equipment $6,613
Total cash flow $54,613
Al owned a family high-deductible health policy as part of his MSA for the entire year. What is his maximum permitted contribution to the MSA in 2020 if his deductible is $5,000?
Henry has a $10,000 car insurance policy with a $400 per claim deductible. Henry is involved in an accident, and his car sustains $7,000 worth of damage. How
much will Henry's insurance company pay?
Answer:
The answer is $6,600
Explanation:
I know this because i got it right when i answered it
Cash Acme Company Balance Sheet As of January 5, 2021 (amounts in thousands) 13,700 Accounts Payable 3,200 Debt 5,100 Other Liabilities 15,400 Total Liabilities 2,000 Accounts Receivable 3,600 Inventory 900 6,500 Property Plant & Equipment Other Assets 800 Paid-In Capital Retained Earnings Total Equity 7,200 24,500 31,700 38,200 Total Assets 38,200 Total Liabilities & Equity
Update the balance sheet above to reflect the transactions below, which occur on January 6, 2021
1. Receive payment of $12,000 owed by a customer
2. Purchase equipment for $45,000 in cash
3. Issue $85,000 in stock
4. Borrow $67,000 from a bank
What is the final amount in Accounts Payable?
Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars.
Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet).
Answer:
Acme Company
1. Acme Company
Balance Sheet
As of January 6, 2021 (amounts in thousands)
Cash 13,819
Accounts Receivable 3,188
Inventory 5,100
Property Plant & Equipment 15,445
Other Assets 800
Total Assets 38,352
Liabilities and Equity:
Accounts Payable 2,000
Bank Payable 67
Debt 3,600
Other Liabilities 900
Total Liabilities 6,567
Equity:
Paid-In Capital 7,285
Retained Earnings 24,500
Total Equity 31,785
Total Liabilities & Equity 38,352
2. The final amount in Accounts Payable remains $2,000,000, but the Bank Payable increased from zero to $67,000.
Explanation:
a) Data and Calculations:
Acme Company
Balance Sheet
As of January 5, 2021 (amounts in thousands)
Cash 13,700
Accounts Receivable 3,200
Inventory 5,100
Property Plant & Equipment 15,400
Other Assets 800
Total Assets 38,200
Liabilities and Equity:
Accounts Payable 2,000
Debt 3,600
Other Liabilities 900
Total Liabilities 6,500
Equity:
Paid-In Capital 7,200
Retained Earnings 24,500
Total Equity 31,700
Total Liabilities & Equity 38,200
Transaction Analysis:
1. Cash $12 Accounts receivable $12
2. Equipment $45 Cash $45
3. Cash $85 Paid-in Capital $85
4. Cash $67 Bank payable $67
Cash
Beginning balance 13,700
Accounts receivable 12
2. Equipment (45)
3. Paid-in Capital 85
4. Bank payable 67
Ending balance 13,819
The following is TRUE about Inventory: A. Firms increase inventory because there is an opportunity cost to holding inventory B. Firms increase inventory because more inventory sitting for longer periods of time present more opportunities for damage, errors, rework, theft, and obsolescence C. Firms increase inventory because more inventory means more movement of materials D. Firms increase inventory because there is a risk of significant and unpredictable fluctuations in downstream demand E. Firms increase inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures
Answer:
I don't know how it is possible
Ruston Company Income Statement January 1 to December 31, 2017 (amounts in thousands) 7,800 1,560 6,240 780 700 500 4,260 70 4,190 1,676 2,514 Revenue Cost of Goods Sold (COGS) nl Gross Income Sales, General, & Administrative Expenses (SG&A) Depreciation Expense Other Expenses Earnings Before Interest & Taxes (EBIT) Interest Pre-Tax Income Income Taxes Net Income Between January 1 and December 31, 2017:
1. Accounts Receivable increase by $600,000
2. Accounts Payable increase by $300,000
3. Gross Property, Plant, & Equipment increase by $8,300,000
4. Long Term Debt increases by $700,000 Assume no other changes What is the Net Cash Flow?
Answer:
The Net Cash Flow is -$4,686,000.
Explanation:
Note: The data in this question are merged. The complete question with the sorted data are therefore provided before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answers is now provided as follows:
Net Cash Flow can be determined by preparing the cash flow statement as follows:
Ruston company
Cash Flow Statement
For the Year Ended December 31, 2017
Details $’000 $’000
Cash Flows from Operating Activity
Net Income 2,514
Adjustment to net income
Depreciation expense 700
Increase in accounts receivable (600)
Increase in accounts payable 300
Net Cash Flows from Operating Activity 2,914
Cash Flows from Investing Activity
Increase in Gross Property, Plant, & Eq. (8,300)
Net Cash Flows from Investing Activity (8,300)
Cash Flows from Financing Activity
Increase in Long Term Debt 700
Net Cash Flows from Financing Activity 700
Net Cash Flow (4,686)
Therefore, the Net Cash Flow is -$4,686,000.
Which of the following is an essential element of a valid real estate contract?
Duress
Legal purpose
Misrepresentation
Mutual mistake
Answer:
Legal purpose
Explanation:
The contract is approved when there is an agreement and agreement should be enforced i.e.
Agreement + enforceability = contract
Now the element of the contract that become the contract to be valid is the legal purpose that means the contract that should be made should be legal in the court point of view i.e. feasible
Therefore the second option is correct
Job order versus Process Costing Which of the following industries would typically use job order costing, and which would typically use process costing? Steel manufacturing Business consulting Web designer Computer chip manufacturing Candy making Designer clothes manufacturing
Answer:
Job order versus Process Costing
Industries using job order costing:
Business consulting
Web designer
Designer clothes manufacturing
Industries using process costing:
Steel manufacturing
Computer chip manufacturing
Candy making
Explanation:
In job order costing, the manufacturer tracks its prime costs to individual products or jobs. This means that the costs of each job can be computed separately because costs are traced to each job. Under process costing, the prime costs are tracked to the department or process or batch, and not to individual products or jobs.
Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor cost for a motor tune-up is given below: Standard Hours Standard Rate Standard Cost Motor tune-up 2.50 $38.00 $95.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 58 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance $ 450 F Labor spending variance $ 500 U Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly pay rate for tune-ups last week.
Answer and Explanation:
The computation is shown below:
1
Labor efficiency variance = Labor spending variance+Labor rate variance
= $450 + $500
= $950U
Now as we know that
Labor efficiency variance = SR × (AH-SH)
950 = $38 × (AH - 58 × 2.50)
950 = $38 × (AH - 145)
25 = AH - 145
AH = 145 + 25
= 170
Actual labor hours = 170 hours
2
Labor rate variance = AH × (SR-AR)
450 = 170 × ($38 - AR)
2.65 = 38 - AR
AR = 38 - 2.65
= $35.35
. A Real estate broker has a fiduciary responsibility to her client and her responsibilities include financial references, orders and examine reports, and must follow ADA title lll. This broker is most likely working for the client as:
A) An affiliate
B) An escrow officer
C) A property manager
D) A designated broker
Answer:
D) A designated broker
Explanation:
In the case when the responsibilities involved the financial references, orders and viewing the reports also at the same time we need to follow ADA title III so this means that the broker should be working for the client as the designated broker
So according to the given scenario, the option d is right
And, the same is to be considered
Rodriguez Company pays $363,285 for real estate with land, land improvements, and a building. Land is appraised at $198,000; land improvements are appraised at $66,000; and a building is appraised at $176,000. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Answer:
1.Land $163,478
Land Improvement $54,493
Building $145,314
2.Dr Land $163,478
Dr r Land Improvement $54,493
Dr Building $145,314
Cr Cash $363,285
Explanation:
1. Calculation to Allocate the total cost among the three assets
First step is to Add up all expenditure costs Total Expenditure costs =$198,000+$66,000+$176,000
Total Expenditure costs =$440,000
Second step is to divide each expenditure up by the total amount
Land=($198,000/$440,000= 0.45)
Land improvement=($66,000/$440,000= 0.15)
Building=($176,000/$440,000= 0.40)
Now let Allocate the total cost among the three assets
Land=0.45* $363,285
Land = $163,478
Land improvement=0.15*$363,285
Land Improvement=$54,493
Building=0.40*$363,285
Building=$145,314
Total $363,285
($163,478+$54,493+$145,314)
Therefore the total allocation cost among the three assets is:
Land $163,478
Land Improvement $54,493
Building $145,314
2. Preparation of the journal entry to record the purchase
Dr Land $163,478
Dr r Land Improvement $54,493
Dr Building $145,314
Cr Cash $363,285
(To record purchase)
