Universal Waste Disposal sold 1,350,000 shares of stock at $24.62 per share. The investment banker's commission was 5% of the va
lue of the stock. Accounting fees were $450,000, legal fees were $1,225,000, printing costs were $275,000, and other selling expenses were estimated to be $300,000. To the nearest dollar, what net proceeds did Universal Waste Disposal receive?
The proceeds that UWD received will be as follows: Number of shares 1,350,000 share price $24.62 Amount realized from the shares: 1,350,000×24.62 =33,237,000
Total amount to be deducted will be: (Commission+Accounting fees+legal fees+printing costs+selling expenses) commission=$1,661,850 Accounting fees=$450,000 legal fees=$1,225, 000 printing cost=$275,000 selling expenses=$300,000
Sales quotas specify the quantum of sales standards in terms of monetary value of sales that must be effected by salespersons and the segregation of sales among different products of a company.
Such quotas help in creating an incentive system i.e performance above standards which would be rewarded, and thus serve as a motivation for sales force.
Such a mechanism also helps in comparing and analyzing the sales trends of the past, the standards set and how effectively the standards have been met.
This helps in ascertaining and evaluating productivity of a sales team and defines efficient performance.
Answer: Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is to: " B. Allocate some manufacturing overhead to each individual job ".
Explanation: The steps to implement a manufacturing overhead allocation system are:
1) Obtain a detailed list of all general manufacturing costs.
2) Choose an allocation base (machine hours, direct labor hours) to divide the general factory costs by this allocation base and assign general costs to each production unit.
3) The total allocation base is divided by the units produced to know the amount of manufacturing overhead associated with each unit.
4)"B. Assign some general manufacturing expenses to each individual job." For example, product X requires 2 hours of work to produce it and product Y one hour, higher general manufacturing costs will be assigned to product X
La NIC 2 define los inventarios como activos que son: mantenidos para la venta en el curso normal del negocio, en el proceso de producción para dicha venta, o. en forma de materiales o insumos para ser consumidos en el proceso de producción o prestación de servicios.
