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3 years ago

Materials must have which two qualities in order to be classified as direct materials?

1 answer:

3 0

The answer to your question is
d. they must be an integral part of the finished product but can be an insignificant portion of the total product cost.

Hope this helps you!

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If 10,000 units which were 50% completed are in process at November 1, 90,000 units were completed during November, and 20,000 w

kakasveta [241]

Answer:

False

Total equivalent units 89,000 units

Explanation:

Equivalent units are notional whole units which represent incomplete work and are used to apportion cost between work progress and completed work. These units are determined as follows:

Equivalent units = Degree of work done(%) × units of inventory

Item unit Equivalent unit

Opening inventory 10,000 50% × 10,000 5000

Fully worked unit 80,000 100%× 80,000 80,000

Closing inventory 20,000 20% × 20,000 4,000

Total equivalent units 89,000

Notes:

1. Fully work represent units started and completed in the same period. They exclude the opening inventory.

Fully worked = 90000- 10,000 =80,000.

2. Note also at that the degree of completion for opening inventory is the simply the balance of work remaining to be done.

For example, for materials, 50% of work has been done on the opening inventory in the last period, hence the balance of 50% would be done this period

6 0

3 years ago

While conducting an audit of a new nonissuer client, an auditor discovers that accounting policies applied in relation to the fi

Marat540 [252]

Answer:

A) Obtain sufficient appropriate evidence about whether changes in the accounting policies have been appropriately accounted for and adequately presented and disclosed in accordance with the applicable financial reporting framework.

Explanation:

When such things happen, the auditor must search more information regarding the accounting policies and must evaluate if the company's accountants adopted accounting policies that are legal and adjust to applicable financial reporting (e.g. GAAP in the US). The auditor must also try to determine the effects of the applied policies and if all proper disclosures have been included or not. The auditor should also try to determine why the company's accounting department did that and how do they justify it.

3 0

3 years ago

Bryan works as a salesman for jumbocorp. last year his sales target was $3 million and this year in an aggressive bid for growth

Leto [7]

There are a couple of reasons why Bryan acted in an unethical manner. First, he may have low morals which could be traced to his upbringing or life challenges. He could also have acted this way due to the demands made upon him by his employer to increase sales so dramatically. The stress of keeping his job may have been greater than acting ethically.

3 0

4 years ago

A common stock pays an annual dividend per share of $1.80. The risk-free rate is 5%, and the risk premium for this stock is 4%.

ArbitrLikvidat [17]

Answer:

The value of the stock today is $20

Explanation:

Using the CAPM equation, we first calculate the required rate of retunr on the stock.

The equation for CAPM is,

r = rRF + Beta * rpM

Where,

rRF is the risk free rate
rpM is the risk premium on market
Beta * rpM is the risk premium on stock

r = 0.05 + 0.04

r = 0.09 or 9%

The value of the stock can be calculated using the zero growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock. As the dividend from the stock is expected to remain constant through out to an indefinite period, the value of the stock today is,

P0 = Dividend / r

P0 = 1.8 / 0.09

P0 = $20

3 0

3 years ago

Peter hires Brunhilda to represent him and assist with the sale of his home. They sign a listing contract to memorialize their r

Sunny_sXe [5.5K]

Answer:

c. Express agency

Explanation:

An express agency can be defined as a type of contractual agreement between two (2) parties, which typically involves one party being instructed and authorized to act on behalf of the other person, usually referred to as the principal. Express agency is a fiduciary role.

In this scenario, Peter hires Brunhilda to represent him and assist with the sale of his home. They sign a listing contract to memorialize their relationship. Thus, the type of agency that has been created between Peter and Brunhilda is an express agency.

7 0

3 years ago