Answer:
Explanation:
The meaning of terms is shown below:
Direct material: The material which is directly related to the production process of the product is known as direct material
Direct labor: The labor who are engaged in production process of the product plus their wages is known as the direct labor
Manufacturing overhead: All the indirect cost related to manufacturing is known as manufacturing overhead i.e depreciation on factory equipment, the salary of supervisor etc
The categorization is given below:
a. Windshield - direct materials
b. Engine - direct materials
c. Wages of assembly line worker - direct labor
d. Depreciation of factory machinery - manufacturing overhead
e. Factory Machinery lubricants - manufacturing overhead
f. Tires - direct materials
g. Steering wheel - direct materials
h. Salary of painting supervisor - manufacturing overhead
Answer:
below the break even point, the firm is losing money.
Explanation:
The break even point is the output level at which the firm's revenue equals its costs. Above this level, the firm is operating at a profit, below this level, the firm is operating at a loss.
The formula for calculating break even point in units produced is:
break even point in units = total fixed costs / contribution margin per unit
Answer:
$258,500
Explanation:
The terms FOB shipping point indicates that ownership of the goods will passes to the buyer immediately the goods are accepted or collected from the seller by the public carrier. Since the goods in the question are already in transit, they should be added to the closing stock.
FOB destination destination implies ownership of the goods passes to the buyer at the destination. Since the goods in the questions are still in transit, they should be included in the closing stock.
Therefore, we have:
December 31 inventory = $210,000 + $24,000 + $24,500 = $258,500
Therefore, Bonita should report $258,500 as its December 31 inventory,
Answer:
Initial cost to Mitchell Labs to go private = $78.75 million
Total value = $121.60 million
Percentage return = 54.41%
Explanation:
As per the data given in the question,
a)
Initial cost to Mitchell Labs to go private = Price per share×no. of shares
= $22.50 × 3.50 million
= $78.75 million
b)
Total value = Sale proceeds + Current share value
= Sale proceeds +[(P ÷ E × EPS) × No. of shares]
= $12.50 million +$7.75 million +$24 million + [(17× $1.30) × 3.50 million]
= $44.25 million + $77.35 million
= $121.60 million
c)
Percentage return = ($121.60 million - $78.75 million) ÷ $78.75 million
= 0.5441
= 54.41%