Great Eastern Rectangle (GER) currently has 970,000 shares of stock outstanding that sell for $29.25 per share. Assuming no mark
et imperfections or tax effects exist, what will the share price be after: a. GER has a three-for-two stock split? b. GER has an 8 percent stock dividend? c. GER has a 27.5 percent stock dividend? d. GER has a three-for-five reverse stock split? e. Determine the new number of shares outstanding in parts (a) through (d).
1 answer:
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Answer:
Dollar amount of ending Finished Goods Inventory = $1,073
Explanation:
The first step is to calculate the cost per unit.
Using absorption costing, the cost of one unit is
Cost per unit = direct materials + direct labor + variable manufacturing overhead + fixed manufacturing overhead per unit.
Now, the number of units left in inventory should be defined
Finished Goods Inventory (FGI) = Beginning Finished Goods Inventory + Units produced - units sold
The dollar amount of ending Finished Goods Inventory is FGI multiplied by the cost per unit.