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MissTica
3 years ago
8

Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are p

lanned for the year. Beginning Inventory Ending Inventory Finished goods (units) 23,000 33,000 Raw material (grams) 53,000 43,000 Each unit of finished goods requires 2 grams of raw material. The company plans to sell 180,000 units during the year. The number of units the company would have to manufacture during the year would be: a) 213,000 units b) 190,000 units c) 180,000 units d) 127,000 units
Business
1 answer:
VashaNatasha [74]3 years ago
4 0

Answer: b) 190000 units

Explanation:

Budgeted production is the number of units of products that must br manufactured. It is calculates by combining the sales forecast with the ending inventory of the finished goods and subtracting the beginning inventory of finished goods.

That is, budgeted production = budgeted sales

+ ending inventory (finished goods)

- beginning inventory (finished goods)

= 180000 + 33000 - 23000

= 190,000 units

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A company currently sells products in the United States and is considering expanding to China or Vietnam. Expanding won't impact
mariarad [96]

Answer: Company should not expand to either.

Explanation:

Find the expected values of expanding to either country and pick the country with the highest expected value:

China:

= ∑(Probability of outcome * Outcome)

= (20% * 2,000,000) + (30% * 1,000,000) + (50% * -2,000,000)

= -$300,000

Vietnam:

= (70% * 1,000,000) + (30% * -2,500,000)

= -$50,000

<em>Both countries result in an expected loss so company should not expand to either of them. </em>

3 0
2 years ago
EA3.
icang [17]

Answer:

3,000 units and 1,950 units

Explanation:

For computing the equivalent units of ending work in process for materials and conversion cost, first we have to determine the ending work in process units which is shown below:

Ending work in process units = Beginning inventory + units started - units completed and transferred

= 2,500 units + 18,000 units - 17,500 units

= 3,000 units

Now the equivalent units of ending work in process for materials would be

= 3,000 units × 100%

= 3,000 units

And, for conversion cost it would be

= 3,000 units × 65%

= 1,950 units

3 0
3 years ago
Williams Company plans to issue bonds with a face value of $600,000 and a coupon rate of 8 percent. The bonds will mature in 10
gulaghasi [49]

Answer:

Decide the issuance of cost of the bonds:  

The issuance cost of bonds is the sum the obliged substance raised through the issue of legally binding proclamation called bonds. The cost of securities relies on the assumed worth, time frame, the coupon rate and the market rate.  

Coming up next are three general standards regarding bonds issue cost:  

  1. On the off chance that the coupon pace of the security is equivalent to the market loan fee, at that point the security is said to be given at standard.  
  2. On the off chance that the coupon pace of the security is more prominent than the market financing cost, at that point the security is said to be given at premium.  
  3. On the off chance that the coupon pace of the security is lower than the market loan cost, at that point the security is said to be given at rebate.  

In the current case, both the coupon rate and the market premium are 8% and are equivalent. Thus, the issue cost of bonds is equivalent to the standard worth. That is $600,000.

3 0
2 years ago
As a component of real estate value, the principle of substitution suggests that_________.
melisa1 [442]

Answer:

<em>If two similar properties are for sale, a buyer will purchase the cheaper of the two</em>

Explanation:

This principle states <em>a property's maximum value is usually determined by the cost of purchasing an equivalent substitute property having the same usage, design, and income.</em>

For instance, why would someone pay $1,000,000 for an apartment when they could buy a different but equally desirable house for just $750,000 in the same area?

3 0
3 years ago
A Systematic Approach to Long-Term Capacity Planning - Purple Swift manufactures birdhouses in lots of 10. Each birdhouse takes
alekssr [168]

Answer:

3.4%

Explanation:

The computation of the  Purple Swift’s paint capacity cushion is shown below:

Time to paint 10 birdhouses (45 × 10 ÷ 60) 7.5 hours

Changeover time  1 hours

Total Operations time per lot (7.5 + 1) 8.5 hours

Hours available per year (8 × 220)   1760  

Capacity (number of lots each year) (1760 ÷ 8.5) 207.06  

Capacity (number of birdhouses each year) =207.06*10 2070.6  

Actual Production given 2000  

Utilization (2000 ÷ 2070.6) 96.6%  

Capacity cushion = 100% - Utilization

= 100% - 96.6%

= 3.4%

5 0
2 years ago
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