Ibarra Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department,
started the month with 16,100 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $20,250. An additional 98,000 units were started into production during the month and 101,000 units were completed and transferred to the next processing department. There were 13,100 units in the ending work in process inventory of the Forming Department that were 30% complete with respect to conversion costs. A total of $594,123 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:
Explanation: Hisaoki's company failed to identify issues, because they never considered problem might arise but it did arises.
In identifying issues one must be clear what the problem is and plan on how to solve them, analyzing the problem is important when identifying issues. This help you to be about the situation when there is problem.
The correct answer is letter "B": is both a dollar amount rather than a percentage and uses a firm's weighted-average cost of capital.
Explanation:
The Economic Value Added metric helps the shareholders of a business to determine how their capital is performing against other potential investments using the <em>weighted-average cost of capital </em>for that purpose. It is also a useful calculation for companies to decide on the most economically valuable project to be pursued.
The economic value added is calculated by subtracting the opportunity cost of capital from the earnings of the company. <em>The result is given in dollar amounts.</em>
Gross profit equals the difference between sales revenue and cost of goods sold.
Explanation:
The gross profit is calculated by subtracting total cost of goods sold from total sales. Both the total sales and cost of goods sold are found on the income statement.
Gross profit = Sales revenue - cost of goods sold.
It is one of three profit metrics used in business statement reports
