Answer:
$6 per unit
Explanation:
using the weighted average method:
units completed 92,000 x 100% (both materials and conversion)
ending work in progress 24,000
- materials 90% completed = 21,600
- conversion 40% completed = 9,600
equivalent unit conversion costs = total conversion costs / total equivalent units of conversion
- total conversion costs = $20,320 + $15,240 + $$182,880 + $391,160 = $609,600
- total equivalent units of conversion = 92,000 + 9,600 = 101,600
equivalent unit conversion costs = $609,600 / 101,600 units = $6 per unit
Answer:
.B. The amount of depreciation expense recognized in 2019 would be greater if Dinwiddie depreciates the car under the straight-line method than if the double declining balance method is used
Explanation:
The double-declining method recognizes higher depreciation amounts in the first years of an asset 's life. The method applies twice the rate of the straight-line method on a declining book value balances. In the latter years, the depreciation amount will be less because the book value will have declined considerably.
In this case, a useful life of six years attracts a straight-line depreciation rate of 16.6 % (1/6 x 100). the double-declining method will apply a rate of 33.2 %.
The straight-line method applies a constant rate throughout the use-life of an asset. The book value decreases at a constant rate, unlike in double -declining, where the book value decreases rapidly in the early years of the asset. 2019 will be the fourth year in this case. The fourth-year is in the latter stages of a six-year useful life.
Answer:
$34.35
The price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.
Explanation:
Computation for the share price to expect after the announcement
Using this formula
Ke = [ D1 / P0 ] +g
Where,
D1 =$4.01
P0 = $50.07
g =3.4%
Let plug in the formula
Ke = [ D1 / P0 ] +g
Ke= [ $4.01 / $50.07] + 0.034
Ke= 0.0800+ 0.034
Ke= 0.1140
Second step is to find the Price after Expansion using this formula
P0 = D1 / [ Ke - g ]
Where,
D1=$2.57
Ke=0.1140
g=4.7%
Let plug in the formula
P0= $ 2.57 / [ 0.1140 - 0.047 ]
P0=$2.57/0.067
P0=$ 34.35
Based on this calculation, we can see that the price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.
Therefore the share price that you would expect after the announcement will be $34.35
Answer:
-$8,705
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment
where,
The Initial investment is $110,000
All yearly cash flows would be
= Annual cost savings × PVIFA for 4 years at 12%
= $30,000 × 3.0373
= $91,119
Refer to the PVIFA table
And, the salvage value would be
= Salvage value × pvif for 4 years at 12%
= $16,000 × 0.636
= $10,176
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
Now put these values to the above formula
So, the value would equal to
= $91,119 + $10,176 - $110,000
= -$8,705
Answer:
$4,013.10.
$3,329.54.
Explanation:
If discount rate is 8%
PV of Cash Flows :
($830 / 1.08^1) + ($1,150 / 1.08^2) + ($1,410 / 1.08^3) + ($1,550 / 1.08^4)
$768.52 + $985.94 + $1,119.30 + $1,139.30
$4,013.10
If discount rate is 16%
PV of Cash Flows :
($830 / 1.16^1) + ($1,150 / 1.16^2) + ($1,410 / 1.16^3) + ($1,550 / 1.16^4)
$715.52 + $854.64 + $903.33 + $856.05
$3,329.54.