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3 years ago

The Cutting Department of Sheridan Company has the following production and cost data for July.

Business

1 answer:

alina1380 [7]3 years ago

5 0

Answer:

1. Materials Conversion Costs

Total equivalent units of production 17,200 15,800

2. Cost per Equivalent Unit $ 4.05 $ 2.6

Explanation:

Cutting Department

Weighted-Average Method

1. Equivalent Units

Particulars Units % of Completion Equivalent Units

Materials Conversion Materials Conversion

Transferred Out 13,700 100 100 13,700 13,700

Ending Inventory 3500 100 60 3500 2100

Total Equivalent Units 17,200 15,800

The Ending Inventory units are 3500 which are not yet complete.

Materials Conversion Costs

Total equivalent units of production 17,200 15,800

2. Cost Per Equivalent Units

Materials Conversion

Cost Added 69,660 18,480 + 22,600

Total Costs 69,660 41,080

Equivalent Units 17,200 15,800

Cost per Equivalent Unit 69,660 / 17,200 41,080/ 15,800

$ 4.05 $ 2.6

Cost of Ending Work In Process $ 19635

Materials = 3500 * $ 4.05= $ 14175

Conversion = 2100 * $ 2.6= $ 5460

We multiply the equivalent number of units with the cost per unit to find the cost.

Cost Of Units Transferred Out = $ 91,105

Materials = 13,700 * $ 4.05= $ 55,485

Conversion = 13,700 * $ 2.6 = $ 35620

B. A Cost Reconciliation Report

Materials Conversion

Ending WIP $ 14175 $ 5460

Transferred Out $ 55,485 $ 35620

Total $ 69660 41080

These calculated costs reconcile with the costs given in the above data.

Materials Conversion

Cost Added 69,660 18,480 + 22,600

Total Costs 69,660 41,080

These costs reconcile with the given costs.

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Sharon Corporation redeems 20 shares of Kevin's common stock. Kevin directly owned 50 shares prior to the redemption. Kevin is a

alexdok [17]

Answer:

75 shares

Explanation:

In this specific scenario, it seems that Kevin is treated to 75 shares prior to the redemption. This is calculated by adding the 50 shares that Kevin holds directly prior to the redemption itself as well as the 25 extra shares that are held by AMI. These 25 shares are 50% of the total 50 shares that AMI holds since Kevin is a 50% partner.

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3 years ago

At the beginning of its current fiscal year, Willie Corp.’s balance sheet showed assets of $10,100 and liabilities of $6,900. Du

Viefleur [7K]

Answer:

Dividends = 6,000

Explanation:

Ending liabilities = Beginning liabilities - Decrease in liabilities

= $6,900 - $1,200

= $5,700

Ending net assets = Ending total assets - Ending total liability

$3,900 = Ending total assets - $5,700

Ending total assets = $3,900 + $5,700

= $9,600

Ending RE = Ending total assets - Ending liabilities

= $9,600 - $5,700

= $3,900

Dividend = Beginning RE + Net income - Ending RE

= $6,900 + $3,000 - $3,900

= $6,000

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3 years ago

1) When there is uncertainty in the marketplace, what happens to yield spreads and why?2) Why do venture capital companies often

Yuki888 [10]

Answer and Explanation:

1. When there is high uncertainty in the market, there will be high yield spreads. This is because the higher the risk the higher the profit or compensation for risk

2.preferred stock positions pay more consistent dividends that common stock positions and also pay higher than bonds.

3.Accelerated depreciation is depreciation method in accounting that deducts higher depreciation expenses in the early life of an asset therefore leaving the company to pay less taxes on these assets and more cash flow. Increased cash flow consequently encourages and leads to more investment

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4 years ago

You must estimate the intrinsic value of Lowell Technologies’ stock. The end-of-year free cash flow (FCF1) is expected to be $30

Hunter-Best [27]

Answer:

Firm's estimated intrinsic value per share of common stock = $40.00

Explanation:

Intrinsic value:

Intrinsic value is a way of describing the perceived or true value of an asset.

Formula:

Intrinsic value = free cash flow / required rate - growth rate

As the end-of-year free cash flow (FCF1) = $30 and it is expected to grow at a constant rate of 5.0% a year thereafter.

so FCF2 = 30 (1 + 5%)

FCF2 = 31.5

Value at year 1 = FCF2 / required rate - growth rate

Therefore by putting the values in the above formula, we get

Value at year 1 = 31.5 / 0.08 - 0.05

Value at year 1 = 31.5 / 0.03

Value at year 1 = 1,050

As the company’s WACC is 8.0%, so

Value today = 30 / (1 + 0.08)1 + 1,050 / (1 + 0.08)1

Value today = $1,000 million

As stated in the question it has $200 million of long-term debt, and there are 20.0 million shares of common stock outstanding.

Intrinsic value = (1,000 - 200) / 20

Intrinsic value = $40.00

8 0

3 years ago

Lois is selling her needlework shop to Simon. Simon is also purchasing the name of the business from Lois, all of the fixtures,

Ira Lisetskai [31]

Answer:

D. Both A and B

That is bill of sale and financial statements.

Explanation:

Bill of sale is a document that is used to transfer ownership of goods and services to another person.

Financial statement shows activity and a business's financial position at a given point in time.

When selling the business to Simon, Lois will provide him the financial statements and bill of sale.

3 0

3 years ago

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