Answer:
Part a. Compute the unit product cost under absorption costing.
Variable costs per unit:
Direct materials $ 165
Direct labor $ 72
Variable manufacturing overhead $ 8
Fixed Overheads per unit:
Fixed manufacturing overhead ($535,500/10,500) $ 51
Unit product cost $296
Part b. Compute the unit product cost under variable costing.
Variable costs per unit:
Direct materials $ 165
Direct labor $ 72
Variable manufacturing overhead $ 8
Unit product cost $245
Explanation:
Part a. Compute the unit product cost under absorption costing.
Absorption costing treats fixed overheads as part of product cost and hence fixed manufacturing overheads are included in unit product cost at their absorption rate
Part b. Compute the unit product cost under variable costing.
Variable Costing System treats fixed overheads as a Period Cost and not part of product cost hence fixed manufacturing overheads are excluded in unit product cost
Answer:
$131,000
Explanation:
The computation of the ending balance of stockholder equity is shown below:
= Beginning balance of stockholder equity + net income - dividend paid + additional common stock issued
= $94,000 + $24,000 - $9,000 + $22,000
= $131,000
Therefore, the ending balance of stockholder equity is $131,000
We simply added the net income and the additional common stock issued and deduct the dividend paid to the beginning balance of stockholder equity so that the ending balance could come
Answer:
False.
Explanation:
Accounting systems that use standards for product costs are standard cost systems.
In Financial accounting, various business firms or companies use the standard cost systems to determine the variances or differences between the actual (real) cost of goods produced and the estimated cost for the goods that were produced by the company.
Hence, standard cost systems are used by business firms or companies as a strategic tool or technique for the management and control of costs, budget planning, and analyzing cost management performance at a specific period of time.
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Answer:
Note: <em>The complete question is attached as picture below</em>
1a. The one year spot rate can be calculated using the one year zero bond.
PV * (1 + S1) = FV
1 + S1 = 1000 / 900
S1 = 1.1111 - 1
S1 = 0.1111
S1 = 11.11%
1b. PV of the 2 year bond = $950
Annual coupon = 1000 * 5% = $50
950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2
950 = 50 / 1.1111 + 1,050 / (1 + S2)^2
1,050/ (1 + S2)^2 = 950 - 45 = 905
(1 + S2)^2 = 1050 / 905
1 + S2 = 1.160221/2
S2 = 7.714%
1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2
Price of the 2 year zero bond = 1,000 / 1.1602
Price of the 2 year zero bond = 861.9203586
Price of the 2 year zero bond = $861.92
