Answer:
d. all of the answers are correct
Explanation:
Cost allocation is being done:
1) to influence management behavior and thus promote goal and managerial effort,
2) to measure inventory costs and to know of goods sold on a product or project,
3) to justify cost (e.g to justify an accepted bid).
For example, if you are to determine the amount of electricity consumed at a particular period, the number of units consumed determines the total cost to be paid for the electricity consumed. In such an instance, the number of units of electricity consumed is a Cost Driver.
A cost driver is the most appropriate way of calculating or determining a specific cost.
Variable cost drivers can come in the form of hourly costs, costs per unit, or batch costs, among others.
Cost drivers can be fixed costs, such as in the case of set-up costs.
Answer:
the average unit cost: $7.917
Explanation:
I think your question is missed of key information, allow me to add in and hope it will fit the original one.
<em>In its first month of operations, McLanie Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9. Assuming there are 200 units on hand at the end of the period. Calculate average unit cost. (Round answers to 3 decimal places, e.g. 5.125.)</em>
My answer:
Given:
- 1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9.
<=> Total units = 300 + 400 + 500 = 1200 units
<=> Total cost: 300*$6 + 400*$8 + 500*$9
= $1,800 + $3,200 + $4,500
= $9500
- As we know that, the average unit cost:
= Total cost / total units
=$9,500 ÷ 1,200 = $7.917
Hope it will find you well.
<em />
Answer:
D. 10,400 units of A and none of B
Explanation:
product A
contribution margin = $41 - $32
= $9
product B
contribution margin = $29 - $19
= $10
at full capacity:
contribution for product A = 10400*$9
= $93600
contribution for product B = 5900*$10
= $59000
Since the contribution is higher for product A, The company should produce 10400 units of product A and none of B.
Answer:
24 million shares ; $16 million
Explanation:
The computation of the weightage number of treasury shares are shown below:
Number of shares Price Total
2 $22 $44 million
1 $28 $28 million
Total 3 $72 million
So, the weighted average number of shares would be
= $72 ÷ 3 = 24 million shares
Now the journal entry would be
Cash A/c Dr $64 million (2 million treasury shares × $32)
To Paid in capital - share repurchase A/c $16 million
To Treasury stock $48 million (24 million treasury shares × $2)
(Being the treasury shares are sold)
