Answer:
$0.44
Explanation:
Given that,
Beginning work in process = $5,500
Started in April = $18,500
Units completed = 42,500
Ending Work-in-Process = 12,500
Using the weighted-average method,
the cost per equivalent unit for materials is as follows:
= (Beginning work in process + Started in April) ÷ (Units completed + Ending Work-in-Process)
= ($5,500 + $18,500) ÷ (42,500 + 12,500)
= $0.44
Answer: Option A
Explanation: The given case relates to the problem of dissolution of partnership and not the dissolution of firm.
In case of dissolution of partnership only the existing agreement among the partners ceases to exist due to leaving or joining of new partners and a new agreement takes place among the existing partners.
In such a case, the account balance of the partner remains same. It changes in case of dissolution of firm.
Hence the correct option is A.
Answer:
$321,600
Explanation:
debt equity ratio = debt / equity
since the debt to equity is 0.8, that means that for every $ invested from equity, $0.80 will be borrowed. If the new project requires an initial cash outlay of $300,000:
- then $300,000 / $1.80 = $166,667 will be new equity
- and $133,333 will be new debt
total cost of initial outlay including flotation costs = ($166,667 x 1.09) + ($133,333 x 1.0495) = $181,667 + $139,933 = $321,600
flotation costs include all the costs associated with issuing new stocks or taking new debt.
