What’s the correct answer

Franklin Co. had 10 units of an inventory item on hand at the beginning of the current year, each of which had a per-unit cost o

faltersainse [42]

Answer:

$55 and $100

Explanation:

The computation of the ending inventory is shown below:

Under the LIFO method

= Ending inventory units × purchase price

where,

Ending inventory units is

= 10 units + 20 units - 25 units

= 5 units

So, the ending inventory is

= 5 units × $11

= $55

Under the Average cost method

The average cost per unit is

= (Beginning inventory units × price per unit + purchase inventory units × price per unit) ÷ (Beginning inventory units + purchase inventory units)

= (10 units × $10 + 20 units × $25) ÷ (10 units + 20 units)

= ($100 + $500) ÷ (30 units)

= ($600) ÷ (30 units)

= $20 per unit

The ending inventory units is

= 10 units + 20 units - 25 units

= 5 units

So, the ending inventory is

= 5 units × $20

= $100

4 0

3 years ago

Maurice is buying a property from Robert. At the initial property viewing, Robert tells Maurice that the property is 4.1 acres.

andreev551 [17]

Answer:

The contract is voidable.

Explanation:

The survey discovered a misrepresentation in the consideration (the size of the land), so that means that Maurice can choose to void it or not. A voidable contract is a contract that can be voided. In this case, the injured party is only Maurice, so only he can void it, or choose not to. They might negotiate a discount or something, it is up to him.

8 0

3 years ago

For Mortenson Company, the following information is available: Cost of goods sold is $390,000; Dividend revenue is $15,000; Inco

QveST [7]

Answer:

C) Should be reported at $210,000

Explanation:

The computation of the gross profit in case of the multi-step income statement is presented below:

Mortenson Company

Multi step income statement

Sales $600,000

Less: Cost of goods sold -$390,000

Gross profit $210,000

After deducting the cost of goods sold from the sales we can get the gross profit

5 0

4 years ago

Given the following financial structure for Company S for all of 2016:

Mila [183]

Answer:

Explanation:

A.)

The Basic EPS can be determined by using the formula:

$\mathtt{Basic \ EPS = \dfrac{Net \ income \ attributabe \ to\ common \ stock \ holders }{\text{common stock outstanding throughout the year}} }$

$\text{Given Net income = \$2,600,000}$

$\text{Net income available for common stock holders = }$ $\text{ Net income given less dividend}$

$\text{ to preferred holders of stock}$

$\mathtt{=$2,600,000 - $100 \times 50000\times 6\%}$

$=\$2,300,000$

$\text{Common stock} = $800,000$

∴

$\mathbf{Basic \ EPS = \dfrac{\$2,300,000}{800,000} }$

$\mathbf{Basic \ EPS = \$2.88 \ per \ common \ stock}$

B.)

The calculations for the numerator and denominator effect are:

$\text{Calculation of the effect on incremental EPS}$

Convertible on preferred stock $\mathtt{=\dfrac{500,000 \times 100 \times 6\%}{50000\times 5}}$

$=1.20$

Convertible Bond $=\dfrac{500,000 \times 8\%\times 70\%}{\dfrac{500,000}{1000\times 20}}$

= 2.80

Stock options $= \dfrac{0}{100,000- (100,000\times \dfrac{60}{80})}$

= 0

Determination of the numerator & denominator effect for each convertible securities shown above are:

Numerator (N) Denominator (D) Dilution index = N/D

Net income $2,600,000

Less: Preferred $300000

Dividend

Common stock A

Net income $2,300,000 800,000 2.875

Add: Stock

Options (B) 0 25000

Total (C) = (A + B) $2300000 825000 2.788

Add: Convertible

Bonds (D) 428000 10000

Total (E) = (C+D) $2328000 835000 2.787

Add: Convertible

Preferred Stock (F) $300000 250000

Total (E) + (F) $2628000 1085000 2.422

C.)

Particulars Dilutive Index Rank (most dilutive is 1.)

Stock Option 2.788 1

Convertible Bonds 2.787 3

Preferred Stock 2.422 2

D.)

From above, the convertibles are diluted EPS (DEPS)

$\text{ DEPS =Net income available common stockholders + net tax dividend on convertible securities}$ ÷ $\text{weighted average no. of common shares + effect of convertible stock + convertible stock options}$

$\text{DEPS (1{st} stage) for only common stock}= \dfrac{2300000}{800000} = \$2.88}$

$\text{DEPS (2{st} stage)with \ stock \ options}= \dfrac{2300000+0}{800000+25000} = \$2.788}$

$\text{DEPS (3{st} stage)with \ stock \ options \& preferred \ stock }= \dfrac{2300000+300000+0}{800000+250000+25000} = \$2.42}$

3 0

3 years ago

For 2018. Franklin Manufacturing uses machine-hours as the only overhead cost-allocation base. The estimated manufacturing overh

zysi [14]

Answer:

Using job costing, the 2018 budgeted manufacturing overhead rate is C. $6,00 per machine-hour

Explanation:

Manufacturing Overheads are absorbed in the production process at their Budgeted Rate multiplied by the Actual Activity during the period.

Budgeted Rate. = Total Budgeted Overhead Cost / Total Budgeted Activity

Total Budgeted Activity is the allocation base used to allocate the Overhead Cost. Franklin Manufacturing uses machine-hours as the only overhead cost-allocation base.

Thus the Budgeted Rate = $300,000/ 50,000

= $ 6.00 per machine hour

5 0

3 years ago