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3 years ago

Carolina Plating Company reported a cost of goods manufactured of $520,000, with the firm's yearend

Business

1 answer:

Lorico [155]3 years ago

5 0

Answer:

The correct anwer is A.

Explanation:

Giving the following information:

Cost of goods manufactured= $520,000

Ending work in process= $70,000

Raw materials used in the production of $80,000

Direct labor= $140,000

Allocated manufacturing overhead of $240,000

To calculate the beginning work in process, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

520,000= beginning WIP + 80,000 + 140,000 + 240,000 - 70,000

beginning WIP= 130,000

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Elroy Corporation repurchased 4,000 shares of its own stock for $30 per share. The stock has a par of $10 per share. A month lat

gregori [183]

Answer:

The journal entry is as follows which is shown below:

Balance in Treasury stock is $93,000

Explanation:

The journal entries which is to be recorded as:

Shares repurchased for $30 per share:

Treasury Stock A/c....................Dr $120,000

Cash A/c.............................Cr $120,000

Shares resold for $32 per share:

Cash A/c.........................................................Dr $28,00

Treasury Stock A/c..............................................Cr $27,000

Paid in capital from Treasury Stock A/c........Cr $1,800

Working Note:

Treasury Stock = Number of shares × Rate per share

= 4,000 × $30

= $120,000

Cash = Number of shares × Rate per share

= 900 × $32

= $28,800

Treasury Stock = Number of shares × Rate per share

= 900 × $30

= $27,000

Paid in capital from Treasury Stock = Cash - Treasury Stock

= $28,800 - $27,000

= $1,800

Balance in Treasury Stock is computed as:

Balance in Treasury stock = Purchase of treasury stock - Cost of treasury stock sold

= $120,000 - $27,000

= $93,000

4 0

4 years ago

Broadway Inc. is considering a new musical. The initial investment required is $880,000. Every year, the free cash flow from the

masya89 [10]

Answer:

Broadway Inc.

a. NPV of the project:

= $120,000 ($1,000,000 - 880,000)

b. Expected NPV of the project if the company cannot abandon the project:

= $120,000 ($1,000,000 - 880,000)

c. True NPV if the company can abandon the project after the first year:

= NPV = $74,080 - $880,000

= -$805,920

d. Value of the option to abandon:

= NPV = $74,080 - $880,000

= -$805,920

Explanation:

a) Data and Calculations:

Initial investment cost = $880,000

Assumed cost of capital = 8%

Expected annual free cash inflow = $80,000 in perpetuity

NPV = PV of Cash inflows minus PV of Cash outflows

PV of a perpetuity = Expected Annual Cash Inflows divided by cost of capital

= $80,000/0.08

= $1,000,000

$80,000 * 0.926 = $74,080

NPV = $74,080 - $880,000

= -$805,920

b) Broadway's Present Value of its perpetual annual cash inflow is calculated by dividing the cash inflow by the rate of interest, which is the cost of capital.

3 0

4 years ago

When using the specific identification inventory method, cost of goods sold equals the ______.

Elenna [48]

When using the specific identification inventory method, the cost of goods sold equals the "revenues from the goods sold."

This is because the specific identification inventory method calculates each unit of n item in an inventory from when it enters the inventory until it leaves it.

The specific identification inventory method is used by many industries such as automobiles, furniture, jewelry, etc.

This method is mostly used when each unit of items can be specified easily, either through serial number, stamped receipt date, or other means of identification.

Hence, in this case, it is concluded that the specific identification inventory method is a good method to use in certain industries.

Learn more here: brainly.com/question/15896939

8 0

3 years ago

Read 2 more answers

What is a major function of the public sector

Flauer [41]

Answer:

Public sector provides many services such as; education, health and social care.

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3 years ago

What would happen if someone assassinated a world leader?