Answer:
$33.93
Explanation:
First, find the present value of each year's dividend at 15% required rate of return;
(PV of D1 ) = 4.40 / (1.15) = 3.8261
(PV of D2 ) = 4.50 / (1.15²) = 3.4026
Next, find terminal Cashflow;
D3 = D2 (1+g)
D3 = 4.50 (1.02) = 4.59
(PV of D4 onwards ) =
Next sum up the PVs to find price;
=3.8261 + 3.4026 + 26.6977
= 33.926
Therefore, this stock is worth $33.93 today
Answer and Explanation:
1. The computation of overhead rate based on direct labor cost is shown below:-
Overhead rate = Overhead applied × 100 ÷ Direct labor cost
= 888 × 100 ÷ 1,200
= 74%
2. The Preparation of job-order cost sheet for the four jobs is shown below:
Particulars Job 86 Job 87 Job 88 Job 89
Beginning balance $6,888 $6,820
Direct materials $3,000 $7,000 $2,100 $1,500
Direct labor $800 $6,000 $900 $500
Applied overhead
is 74% of direct labor $592 $4,440 $666 $370
Total $11,280 $24,260 $3,666 $2,370
3. The computation of ending balances of Work in Process and Finished Goods is shown below:-
Work in process of Job 88 = $3,666
Finished goods = Total of Job 86 + Total of Job 89
= $11,280 + $2,370
= $13,650
4. The computation of the Cost of Goods Sold for March is shown below:-
Cost of goods sold is
= Job 87
= $24,260
Answer:
Explanation:
Cost will be allocated based on proportion of total Appraiser's estimate of fair value.
Total Appraisal Estimate = 16,000 + 5000 + 3,050
= $24,050
Total Purchase Price = Purchase price + Installation cost
=17,000 + 1,800
=$18,800
Punch Press
Punch Press proportion =
= 66.5%
Punch Press Cost = 66.5% * 18,800
= $12,502
Lathe
Lathe proportion =
= 20.79%
Punch Press Cost = 20.79% * 18,800
= $3,908.52
Welder
Welder proportion =
= 12.47%
Punch Press Cost = 12.47% * 18,800
= $2,344.36
Note; There are multiple variants of this question so be sure to check the figures to ensure it is the right one.