Answer:
cost of goods sold during the year = $142,000
Explanation:
First of all, let us calculate the total cost of goods acquired during the year, as follows:
Total cost of goods acquired = beginning inventory + purchases
= 12,000 + 150,000 = $162,000
Next, we are told that there was an ending inventory of $20,000, therefore, the cost of goods sold is calculated as follows:
cost of goods sold = total cost of goods acquired - ending inventory
= 162,000 - 20,000 = $ 142,000
Therefore inventory worth $142,000 was sold during the year
Answer:
(C) How much debt does clip joint company already have?
Explanation:
Bond investors are more likely to ask a bond issuer (the company issuing the bonds) its current level of debt before investing. This information is important as it informs the order that the current bond holders will occupy in a repayment hierarchy if the company was unable to pay back the debt and it needs to be liquidated.
Answer:
a. $180,850
b. $390,269
c. $74,837
Explanation:
a. The computation of the manufacturing overhead is shown below:
= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs+ Factory manager salary
= $16,120 + $13,703 + $2,894 + $52,814 + $83,926 + $3,044 + $8,349
= $180,850
b. The computation of the product cost is shown below:
= Direct materials used + Direct labor + manufacturing overhead
= $139,734 + $69,685 + $180,850
= $390,269
c. The computation of the period cost is shown below:
= Sales salaries + Depreciation on delivery trucks + Repairs to office equipment + Advertising + Office supplies used
= $49,631 + $4,044 + $2,185 + $15,670 + $3,307
= $74,837
Answer:
To no the prices of goods and service and to buy stuff at low prices.
Explanation:
A purely competitive market is a situation where multiplier sellers have homogeneous products. The availability of the information is very important in a purely competitive market in order to decide how many sellers are selling the same product and from where an individual can buy products at low prices. Availability of information means, no seller can earn abnormal profits.
Answer:
a) diluted earnings per share = 0
Explanation:
Diluted earnings per share (DEPS) is a recalculation of the basic EPS. The difference between DEPS and EPS is, EPS represents the current position of earnings per share. No changes in number shares and/or earnings in the future are incorporated in the basic EPS.
Whereas DEPS is a representation of not only the current position of earnings and shares but also includes the commitments an entity has already made whose occurrence may result in an increase/decrease in the amount of earnings and/or number of shares. For example, in the question Culver Company has issued 10-year convertible bonds which right now have no impact on basic EPS but if in the future these bond holders exercise their right of conversion, this would result in an increase in number of ordinary shares hence decreasing/diluting the basic EPS. The entities use DEPS to show shareholders the impact of such commitments on the basic EPS to improve their decision making.
So in 2017 none of the bonds were converted therefore no diluted earnings per share is calculated in 2017.
If all of the bonds were converted in 2017 the DEPS would have been calculated as follows:
The formula for calculating DEPS is as follows;
DEPS = (Net income + interest savings) ÷ number of ordinary shares + increase in ordinary shares as a result of conversion.
Tax savings as a result of conversion=$128400 ($2140000×6%). Because if bond holders convert into ordinary shares then Culver company will not have to pay them interest and hence the amount of interest is saved.
Increase in ordinary shares upon conversion= 29960 ($2140000÷$1000=2140 bonds. Each bond is convertible into 14 shares therefore, 2140×14=29960).
Now Lets calculate DEPS as follows;
DEPS = ($296000+$128400) ÷ 91000+29960
DEPS =$424400÷120960
DEPS = $3.5
