If you are a producer and need to determine Q*, what rule do you use to determine Q*? (Q* = equilibrium quantity)

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in

marissa [1.9K]

Answer:

The cost for conversion as per equivalent unit of production is $5.85

Explanation:

Formula for cost of conversion per equivalent unit of production =

Total cost / Equivalent units of production

Equivalent cost of production for conversion is given = 95,000 UNITS

CALCULATING TOTAL COST =

Cost of beginning work in progress + Cost incurred in February ( conversion )

= $36,000 + $ 520,000

= $556,000

Putting the values of total cost and equivalent units of conversion in formula-

= $ 556,000 / 95,000

= $5.85

4 0

2 years ago

n 1973, long lines of cars appeared at American gas stations, which either ran out of fuel or limited how much a customer could

natita [175]

Answer: the oil embargo

Explanation:.

4 0

1 year ago

A situation in which some resources are NOT fully utilized is represented in a

svp [43]

The production would be a my a point inside the curve. The curve shows the possibility of producing with all possible materials so inside the curve is representative of one or more of the resources not being used to its full capacity.

6 0

2 years ago

Why do we subtract depreciation in the calculation of EBIAT if we are going to add it back as the next step of the Free Cash Flo

vladimir1956 [14]

Answer: Depreciation is tax deductible

Explanation:

Depreciation on assets is recognized by tax authorities as an expense that a business actually incurs so when the income statement is calculated, depreciation needs to be removed as the expense that it is so that taxes can be calculated on the profit.

Depreciation however, does not take actual cash from the company i.e the company does not actually pay anyone cash for depreciation like most other expenses. It needs therefore to be added back to the Free Cash Flow because the FCF deals with how much actual cash the company has which is something that Depreciation being a non-cash expense did not reduce.

3 0

2 years ago

Contribution Income Statement and Cost-Volume-Profit Graph Kopi Company produces dog cages that are sold for $38 per unit. The c

Marrrta [24]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the total unitary variable cost:</u>

Direct materials= 10

Manufacturing overhead= 5

Direct labor= 2

Selling and administrative= 5

Total unitary variable cost= $22

<u>Now, the contribution margin income statement:</u>

Sales= 5,000*38= 190,000

Total variable cost= 22*5,000= (110,000)

Total contribution margin= 80,000

Fixed Manufacturing overhead= (35,000)

Fixed Selling and administrative= (15,000)

Net operating income= 30,000

7 0

2 years ago