Answer:
$1,000
Explanation:
We know that
Total cost = Fixed cost + Variable cost
From the data given, we can calculate the variable cost using the high-low technique.
Variable cost per unit
=
=$15
Lease cost = FC + $15(Machine hours)
Lease cost -$15(Machine hours) = FC
Case,
i) 800 machine hours,
FC = Lease cost - $15(Machine hours)
= $16,000 -$15(1000) = $1,000
Solution:
a-1) Calculation of the number of shares used for calculating Basic Earning per share
No. of shares period
752000 3/12 188000
1314000 9/12 985500
Weighted average No of shares outstanding 1173500
a-2) Calculation of the number of shares used for calculating Diluted Earning per share
No. of shares period
752000 3/12 188000 1314000 3/12 328500 with Bonds 1340400 6/12 670200
Weighted average No of shares outstanding 1186700
Each bonds to per converted into 44 common stock
i.e. 600 Bonds *44 common=26400 Potential equity shares
b-1) Calculation of earning figures to be used for calculating Basic Earning per share
After Tax net Income will be earnings = $1614000
b-2) Calculation of earning figures to be used for calculating Diluted Earning per share
After tax net Income 1614000
Interest for the 2017 =600000*7*6/12 21000
Tax effect on Interest @40% 8400 12600 1626600
Earnings = 1626600
Answer:
$125,000
Explanation:
Particulars Amount
Sales revenue $115,000
Add: Accounts receivable decrease <u>$10,000</u>
Cash Receipt from customers <u>$125,000</u>
The sales revenue adjusted to a cash basis for the year is $125,000.
Answer:
The correct answer is True
Explanation:
In calculating the equivalent units with respect to labor,the physical units at the start of the period is multiplied by the percentage of completion.
In other words, the equivalent units is shown thus:
Equivalent units =100000 units*20%
Equivalent units =20000 units
This implies that labor has carried out 20% of the work required to transform the 100000 units into finished products,since only 20% work is completed, the remaining 80% is expected in the next period.
Answer:
After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800
Explanation:
For calculation, following things need to be considered which is shown below:
1. Product A process costing = Pounds × Per pound price
= 34,000 × $8
= $272,000
2. Product A costing after selling = Pounds × sale price per pound
= 34,000 × $14
= $476,000
3. Difference of costing :
= Product A costing after selling - Product A process costing
= $476,000 - $272,000
= $204,000
4. Invested amount = $227,800
5. Actual Difference = Invested amount - costing difference
= $227,800 - $204,000
= $23,800
After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800
