Answer:
a. $1,510,000
Explanation:
The computation of the total manufacturing costs is shown below:
= Direct material cost + Direct labor cost + manufacturing overhead cost
where,
Direct material cost = Opening inventory + purchase made - ending inventory
= $200,000 + $500,000 - $240,000
= $460,000
And the other items values remain the same
So, the value would be equal to
= $460,000 + $500,000 + $550,000
= $1,510,000
We assume that the data is given 2018 and 2017
Answer:
the total period cost for the month under variable costing is $46,700
Explanation:
Product Cost Under Variable Costing = Direct Materials + Direct Labor + Variable Overheads
Period Cost Under Variable Costing = Fixed Manufacturing Overheads + All Non-Manufacturing Overheads (Variable and Fixed)
<u>Calculation for the total period cost - Varible Costing</u>
Variable selling and administrative expense ( $ 7× 1,070 Units) $ 7,490
Fixed manufacturing overhead $ 13,530
Fixed selling and administrative expense $ 25,680
Total period cost for the month $46,700
Answer:
Hahahahahahahha is it that much difficult
Answer: $15.33
Explanation:
Present value of growth opportunities = Value of company with growth - Value of company without growth
Value of company with growth:
Using Gordon Growth:
Growth rate = Reinvestment rate * Earnings reinvested
= 20% * 15%
= 3%
Value with growth = ( Earnings * Dividend payout ratio) / (Cost of equity - growth rate)
= (2 * (1 - 20%) ) / (8% - 3%)
= $32.00
Value without growth:
= Earnings / Cost of equity
= 2 / 12%
= $16.67
Present value of growth opportunities = 32 - 16.67
= $15.33