All categories

3 years ago

PA5.

Business

1 answer:

daser333 [38]3 years ago

8 0

Answer:

Using weighted average method

Statement of equivalent units

Material Conversion

Units Units

Units transferred out 19,000 19,000

Add: Closing work-in-progress 6,000 1,800

Average divisor  25,000  20,800

Computation of cost per unit

Material Conversion

$ $

Cost of beginning work-in-progress 10,000 19,000

Cost added 50,000 112,248

Total cost  60,000  131,248

Material cost per unit = $60,000

25,000 units

= $2.40 per unit

Conversion cost per unit = $131,248

20,800 units

= $6.31 per unit

Value of units transferred out

Material = 19,000 x $2.40 = $45,600

Conversion = 19,000 x $6.31 = $119,890

Value of closing work-in-progress

Material = 6,000 x $2.40 = $14,400

Conversion = 1,800 x $6.31 = 11,358

Explanation:

In this case, we need to prepare statement of equivalent units in order to ascertain the average divisor. The average divisor is the sum of units transferred out and closing work-in-progress. Then, we will obtain the total cost of material and conversion, which is the aggregate of cost of opening work-in-progress and cost of units added. We will also calculate the cost per unit, which is total cost of material and conversion divided by average divisor. Finally, the units transferred and ending work-in-progress will be valued at unit cost of material and conversion.

You might be interested in

Please help

Umnica [9.8K]

You are responsible for implementing activities for a group of six foreign students and eight American students who are they

7 0

3 years ago

Oilers, Inc. refines and markets its energy products in different nations around the world. In addition, Oilers' stockholders an

nasty-shy [4]

Answer:

D. expropriation.

Explanation:

Oilers, Inc. refines and markets its energy products in different nations around the world. In addition, Oilers' stockholders and managers come from many different nations. If some of the nations where it operates decided to take over the assets of the company, this act would constitute an expropriation.

Expropriation: It is an act of government for taking private property against the will of the owner for the benefit of the overall public by building roads, highways, flyovers, airports, etc. The owner is just compensated as per government policy. This is an act of getting Expropriated. In legal terms, it is an exercise of eminent domain power.

4 0

3 years ago

Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration.

ivolga24 [154]

Answer:

differential revenue = $7

so correct option is a.$7

Explanation:

given data

Product A costs = $6

contribution margin = $3

Product B costs = $12

contribution margin = $4

to find out

the differential revenue for this decision

solution

we get here the differential revenue for this decision that is express

so first we get here selling price for both product that is

selling price product A = Product A costs + contribution margin

selling price product A = $6 + $3 = $9

and

selling price product B = $12 + $4 = $16

so now we get differential revenue that is

differential revenue = selling price product B - selling price product A

differential revenue = $16 - $9

differential revenue = $7

so correct option is a.$7

4 0

3 years ago

The rule of 70 applies in any growth-rate application. Let’s say you have $2000.00 in savings and you have three alternatives fo

vekshin1

Answer:

(a)70 years

(b)23.33 years

Explanation:

According to the Rule of 70, for a given interest rate x, funds double in $\frac{70}{x}$ years.

(a)For a savings account earning 1% interest per year,

The number of years it will take the fund to double= $\frac{70}{1}$ =70 years

(b)For a U.S. Treasury bond mutual fund earning 3% interest per year.

The number of years it will take the fund to double= $\frac{70}{3}$ =23.33 years

(c)For a stock market mutual fund earning 8% interest per year.

The number of years it will take the fund to double= $\frac{70}{8}$ =8.75 years

3 0

3 years ago

obinson Company had a net deferred tax liability of $34,000 at the beginning of the year, representing a net taxable temporary d

ZanzabumX [31]

Answer:

Robinson's deferred income tax expense or benefit for the current year would be $6,700

Explanation:

The computation of the deferred income tax expense or benefit for the current year is shown below:

= Deferred tax expense - adjustment of tax based on the tax rate

where,

Deferred tax expense = (Favorable temporary differences - unfavorable temporary differences) × corporate tax rate

= ($50,000 - $20,000) × 21%

= $6,300

And, the adjustment of tax equals to

= Net taxable temporary difference × (Tax rate - corporate tax rate)

= $100,000 × (34% - 21%)

= $13,000

Now put these values to the above formula

So, the value would equal to

= $6,300 - $13,000

= $6,700

6 0

3 years ago