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Kazeer [188]
3 years ago
5

A department using the FIFO method for process costing begins the month with 10,000 units which were 70% complete at the end of

the previous month. They started and completed 50,000 units and their ending work in process inventory consisted of 5,000 units which were 10% complete. The costs incurred were $200,000. The cost per equivalent unit of production, using the FIFO method is $ . Round your answer to two decimal places.
Business
1 answer:
Dahasolnce [82]3 years ago
5 0

Answer:

the cost per equivalent unit of production is $4.60

Explanation:

The concept of Equivalent unit of Production measures the output of a process in terms of percentage completion of inputs added into the units of outputs.

With FIFO method, we are only interested in the costs incurred in the year of production because, the costs of Opening Work in Process will in their entirety go towards the completed units

The first step is to determine the <em>Number of Equivalent units</em> as follows :

To finish Opening Work In Process (10,000 × 30%) =    3,000

Started and Completed ( 50,000 - 10,000) × 100%  = 40,000

Closing Work In process ( 5,000 × 10%)                    =      500

Total Equivalent Units                                                 = 43,500

The Next Step is to Calculate <em>Cost per Equivalent Unit</em>.

Cost per Equivalent Unit = Total Costs / Total Equivalent Units

                                         = $200,000 / 43,500

                                         = $4.60

Therefore, the cost per equivalent unit of production is $4.60

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Answer: Zoning Map Amendment?

Explanation:

Zoning Map Amendment is an official document showing that there is a change in the way the land or property is divided into zones within a district and also the way it is being used either for industrial, residential or business purpose.

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7 0
3 years ago
Daniel derives utility from only two goods, cake (Qc) and donuts (Qd). The marginal utility that Daniel receives from cake (MUc)
Agata [3.3K]

Answer:

240= 3Qc + 3Qd  

Explanation:

The computation of the Daniel's budget constraint is shown below;

Given that

Daniel's income= $240

Price of cake (Pc) =$3

Price of donuts (Pd) =$3

So spending on cake = 3Qc

And,

Spending on donut= 3Qd

Finally

Total spending = 3Qc + 3Qd

Now the equation of budget constraint is

Income= (quantity of cake)(price of cake) + ( quantity of donut)(price of donut)

So,  

Income= Qc Pc+ Qd Pd

240= 3Qc + 3Qd  

4 0
2 years ago
You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF
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Answer:

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3 years ago
Suppose that capital becomes more productive. What would we expect to happen? Choose one:
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<u>Answer:</u>

<em>D. The equilibrium interest rate and amount invested would both increase </em>

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<u>Explanation:</u>

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3 years ago
You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays n
Anastasy [175]

Answer:

$13.64

Explanation:

Given:

Exercise price,X = $100

Current price = $100

Value when price is up, uS = $120

Value when price is down, dS= $80

Risk free interest rate = 10%

First calculate hedge ratio, H:

H = \frac{C_u - C_d}{uS - dS}

Where,

Cu = uS - X

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H = \frac{20 - 0}{120 - 80} = \ftac{1}{2}

A risk free portfolio involves one share and two call options.

Find cost of portfolio:

Cost of portfolio = Cost of stock - Cost of the two cells.

= $100 - 2C

This portfolio is risk free. The table below shows that

_______________

Portforlio 1:

Buy 1 share $80; Write 2 calls: $0; Total: ($80 + 0) $80

____________________

Portforlio 2:

Buy 1 share: $120; Write 2 calls: -$40; Total: ($120 - $40) $80

Check for oresent value of the portfolio:

Present value = \frac{80}{1 + 0.10} = 72.73

Value = exercise price - value of option

$72.73 = $100 - 2C

Find call option, C

C = \frac{100 - 72.73}{2} = 13.64

Call option's value = $13.64

8 0
3 years ago
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