Answer:
2014 Product yield will be 18,560
Explanation:
Calculation of Product Yield from 2010 to 2014
Since it begins with 83% good-quality parkas in 2010 and the percentage of good parkas was produced by 2�ch year which means we would add 2% to each of the year starting from 2011 to 2014
2010:
20,000(.83)= 16,600
20,000-16,600=3,400
3,400(.20)=680
680+16,600= 17,280
2011:
20,000(.85)= 17,000
20,000-17,000=3,000
3,000(.20)=600
600+17,000= 17,600
2012:
20,000(.87)
= 17,400
20,000-17,400
=2,600
2,600(.20)= 520
520+17,400= 17,920
2013:
20,000(.89)= 17,800
20,000-17,800=2,200
2,200(.20)=440
440+17,800= 18,240
2014:
20,000(.91)
= 18,200
20,000-18,200
=1,800
1,800(.20)
=360
360+18,200
2014 Product yield= 18,560
Answer:
a
First stage allocation of overhead costs to the activity cost pools
Making Awnings Job Support Other Total
Production Overhead 67500 60000 22500 150000
Office Expenses 8000 65000 27000 100000
b
Activity rates (cost per unit of activity)
Making Awnings Job Support
Production Overhead (Cost/annual activity) 13.5 300
Office Expenses (8000/5000)(65000/200) 1.6 325
Find attachments for c and d part.
Answer:
($ in million)
Dr Cash 81.6
Dr Discount on bonds payable 2.8
Cr Bonds payable80.0
Cr Equity-stock warrants outstanding 4.4
Explanation:
Preparation of the journal entry to record the issuance of the bonds.
($ in million)
Dr Cash 81.6
(80,000,000 X 102/100 = $81.6 million)
Dr Discount on bonds payable 2.8
(80+4.4-81.6 = $ 2.8 million balancing figure)
Cr Bonds payable 80.0
Cr Equity-stock warrants outstanding 4.4
($5 × 11 warrants × 80,000 bonds= $4.4 million)
(Being To record issuance of bonds)
The concert tickets are represented as an opportunity cost.
