Answer:
D. $137
Explanation:
Using FIFO method, that is first in, first out
After Sale on October 8 we have 7 unit left in the inventory which cost $77
A new purchase was made for 15 units at $12 per unit on October 20, totaling current inventory in unit to 21 unit.
Therefore
Sale on October 25 of 12 unit
= 7 units at $77 + 5 units at $(5 × 12)
= 77 + 60
= $137
So it’s gonna be (D or (A because it’s wat u earned by yourself not wat someone give you or its not if u lent money
Answer: Factory overhead control
Explanation: Factory overhead is the account where the amount of cost incurred while manufacturing a product is recorded and no direct labour or material is recorded. When the manufactured goods are finished and produced they are recorded as expenses when the goods are sold as manufactured finished products.
All the expenses related to the factory are included in this account such as rent, utility, electricity, supplies, tools. Factory overhead is known as manufacturing burden or expenses.
Answer:
Additional tax the firm will owe: $3.15
Explanation:
Marginal tax rate is calculated by following formula:
Marginal tax rate = Change in taxes paid/Change in income
Change in taxes paid = Marginal tax rate x Change in income
The firm increases its revenue by $100 while increasing its cost of goods sold by $85.
Change in income = $100 - $85 = $15
Additional tax the firm will owe = $15 x 21% = $3.15
Answer:
B; it offers an expected excess return of 1.8%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
For Stock A
The expected rate of return would be
= 5% + 1.2 × (9% - 5%)
= 5% + 1.2 × 4%
= 5% + 4.8%
= 9.8%
And, the expected return is 10%
So, the excess would be
= 10% - 9.8%
= 0.2%
For Stock B
The expected rate of return would be
= 5% + 1.8 × (9% - 5%)
= 5% + 1.8 × 4%
= 5% + 7.2%
= 12.2%
And, the expected return is 14%
So, the excess would be
= 14% - 12.2%
= 1.8%
