Answer:
e. 225,000 materials; 195,000 conversion.
Explanation:
direct materials
beginning WIP inventory = 0%*50000
= 0
started and completed = 150000*100%
= 150000
ending WIP inventory = 75000*100%
= 75000
equivalent units = 0 + 150000 + 75000
= 225000
conversion
beginning WIP inventory = 50000*60%
= 30000
started and completed = 150000*100%
= 150000
ending WIP inventory = 75000*20%
= 15000
equivalent units = 30000 + 150000 + 15000
= 195000
Therefore, The equivalent units for direct materials and conversion respectively for May is $225,000 and $195,000 respectively.
Answer:
If I bougth the Machine at 14% interest.
This purchase is not justified
Depreciation expenses and credit interest are greater than the income generated
Explanation:
Machine 360000
Adittional cost 20000
Final Cost 380000
Salvage Value 73000
Machine value for depreciation 307000
year 1 307000 61400 245600
year 2 245600 61400 184200
year 3 184200 61400 122800
year 4 122800 61400 61400
year 5 61400 61400 0
Period Payment Capital Interest Loan
360000
1 104.862 54.462 50.400 305.538
2 104.862 62.087 42.775 243.451
3 104.862 70.779 34.083 172.672
4 104.862 80.688 24.174 91.984
5 104.862 91.984 12.878 0
Depreciation 307000
Interes 164.310
Expenses 471.310
Revenue 430.000
Answer:
350,000
And if done per unit, $3.50
Explanation:
Both sales and variable cost are dependent on the number of units sold.
The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.
The target cost of the product is the difference between the selling price and the anticipated profit.
Target cost per unit
= $6.00 - $2.50
= $3.50
Total Target cost = $3.50 * 100,000
= $350,000
Answer: cost ratio
Explanation: The terms of trade must be higher (graphically to the right) of a nation's own production cost ratio. The production cost ratio allows small-scale manufacturers to determine their cost more accurately as well as control known cost parameters and is a method that can be adapted and applied to any business.
In a multi-product manufacturing firm, the production cost ratio is necessary for accurate compilation and allocation of production costs to each category of product especially when both the Production Time and the Production Runs are not the same and/or when fixed labor, overhead and other costs are drawn from the same pool. When the ratio is not applied results in a skewed allocation of production costs. This in turn can affect the business as it becomes difficult to ascertain the products whose production are more profitable to the business.
Answer:
23.12%
Explanation:
Internal rate of return (IRR) is the rate at which the Net present value (NPV) of a project equals to zero.
Using a financial calculator and the CF function, input the following to find IRR;
Initial investment; CF0 = -1,200,000
Yr1 cashflow inflow ; C01 = 235,000
Yr2 cashflow inflow ; C02 = 412,300
Yr3 cashflow inflow ; C03 = 665,000
Yr4 cashflow inflow ; C04 = 875,000
Then key in IRR CPT = 23.119%
Therefore, the Internal rate of return this expansion is 23.12%
