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3 years ago

Jordana Woolens is a manufacturer of wool cloth. The information for March is as follows:

Business

1 answer:

gregori [183]3 years ago

7 0

Answer:

Production cost worksheet

Flow of production Physical unit Direct materials Conversion

Beginning work in process 10,000

Starting during period 20,000

To account for 30,000

Unit Completed 25,000 25,000 25,000

Ending WIP 5,000 5,000 3,000

Accounted For 30,000 30,000 28,000

Cost Total Direct materials Conversion

Beginning WIP 8,600 6,000 2,600

Cost added during period 47,000 30,000 17,000

Total cost to account for A 55,600 36,000 19,600

Equivalent units 30,000 28,000

Equivalent units cost A/B 1.9 1.2 0.7

Assignment of cost

Cost of transferred out 47,500 (25,000 *1/9)

Ending wip:

Direct materials 6,000 (5,000*1/2)

Conversion 2,100(3,000*1/2)

Cost accounted for 55,600

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A new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system yiel

Inessa [10]

Answer:

The net present value of each potential investment:

Machine A Machine B

NPV $167,675 $2,267

Explanation:

a) Data and Calculations:

Machine A Machine B

Cost of machine $565,000 $410,000

Incremental after-tax income 165,000 75,000

Salvage value 25,000 26,000

Estimated useful life 6 years 8 years

Required rate of return 10% 10%

Annuity factor 4.355 5.335

PV factor 0.564 0.467

PV of incremental after-tax income $718,575 $400,125

($165,000*4.355) ($75,000*5.335)

PV of salvage value $14,100 $12,142

Total PV of income $732,675 $412,267

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= Total PV of income minus PV of initial investment cost

7 0

3 years ago

According to the textbook, government price controls fail because: A. they are not enforced. B. legislation cannot repeal basic

Morgarella [4.7K]

Answer:

The correct answer is letter "B": legislation cannot repeal basic economic motives.

Explanation:

Government price controls are regulations imposed by the central government of a country to set limits on prices of certain goods or services because of a surplus, shortage or simply to maintain the demand and supply of those products at their equilibrium level.

However, the demand for some of those products could be unpredictable because individuals could react in opposite directions even if the government has set rules against consumers' favor. Customers' motives might not be always repealed by legislation.

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3 years ago

Clarissa want to fund a growing perpetuity that will pay $5000 per year to a local museum starting next year. she wants the annu

Akimi4 [234]

Answer:

Clarissa needs to fund the growing perpetuity by $166666.67

Explanation:

A perpetuity is an investment that will give a future series of infinite payments so if the perpetuity gives you a periodic growth rate then you find the difference between the interest rate and the growth rate then use the perpetuity formula which is:

Pv = C/(i-g)

where Pv is the present value of the perpetuity which will be the initial investment.

C is the periodic payments that will be received in future in this case $5000

i is the interest rate given for the perpetuity which is 8%

g is the growth rate per fixed period which is 5%

thereafter we substitute on the above mentioned formula:

Pv= $5000/(8%-5%) then compute

Pv = $166666.67 which will be the initial investment for Clarissa to be paid $5000 per year until she dies.

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3 years ago

Which component is more likely to be biased if book values are used in the calculation of wacc rather than market values?

Luden [163]

Common Stock is more likely to be biased if book values are used in the calculation of WACC rather than market values.

<h3></h3><h3>How Does Common Stock Work?</h3>

Security called common stock serves as a proxy for a company's ownership. Common stockholders decide on corporate policies and elect the board of directors. Usually, long-term returns from this type of stock ownership are higher.

Common shareholders, however, do not have any rights to a company's assets in the case of liquidation until all bondholders, preferred shareholders, and other debt holders have been fully compensated. On a company's balance sheet, common stock is listed under stockholders' equity.

How Do I Cast a Ballot Using Common Stock at Corporate Meetings?

Ordinary common shares typically have one vote per share, giving shareholders the ability to cast a ballot on corporate decisions, which are frequently made at a company's annual meeting of shareholders. If you're unable to vote in person, you can choose to have a representative vote on your behalf if you choose (along with others who cannot attend).

Votes may be taken on matters like whether to merge with or purchase a business, elect board members, or consent to dividends or stock splits.

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2 years ago

When an investment bank ________ securities, it guarantees a price for a corporation's securities and then sells them to the pub

ankoles [38]

When investment banks underwrite securities, they guarantee the value of the company's securities before selling them to the public.

Investment securities are a class of securities (transferable financial assets such as stocks and bonds) that are purchased for the purpose of being held for investment purposes.

When an investment bank and a company reach an agreement to underwrite (also known as a firm commitment), the investment bank purchases new securities at an agreed price and sells the securities generally at a premium to cover all costs. We will resell. They include costs associated with the sale.

There are four main types of securities. Bonds, equities, derivative securities, and hybrid securities that combine bonds and equities.

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2 years ago