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3 years ago

Conlon Chemicals manufactures paint thinner. Information on the work in process follows:

Business

1 answer:

kupik [55]3 years ago

3 0

Answer:

a. The equivalent units for materials using the weighted-average method 223432 gallons

b. The equivalent units for conversion costs using the weighted-average method 218714 gallons

Explanation:

The Concept of Equivalent units needs to be first defined.Equivalent Units in process costing is the number of units in terms of completion stage or percentage of a certain input element in the process.

Step 1 Calculate the Units of Closing Work In Process

Hint: Units IN must equal units Out

Units of Closing Work In Process = Units of Opening Work In Process + Units Started during the year - Units of Closing Work In Process

Therefore Units of Closing Work In Process = 43300+235400-211300

= 67400 units

Step 2 Calculate the Equivalent Units of Materials

Closing Work In Process ( 67400×18%) = 12132

Completed and Transferred Out ( 211300×100%) = 211300

Total 223432

Step 3 Calculate the Equivalent Units of conversion costs

Closing Work In Process ( 67400×11%) = 7414

Completed and Transferred Out ( 211300×100%) = 211300

Total 218714

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DaniilM [7]

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3 years ago

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. T

mixas84 [53]

Answer:

b. 5.27%

Explanation:

First, find the PV of the bond today. With a financial calculator, input the following and adjust the variables to semi-annual basis;

Face value; FV = 1000

Maturity of bond; N = 15*2 = 30

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Semi annual interest rate; I/Y = 3.25%

then compute Price; CPT PV= 1,213.547

Next, with the PV , compute the yield to call (I/Y) given 6 years;

Maturity of bond; N = 6*2 = 12

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Price; PV= -1,213.547

Face value; FV = 1,050

then compute Semiannual interest rate; CPT I/Y = 2.636%

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7 0

3 years ago

Which of the following is an example of a sunk cost?

coldgirl [10]

Answer:

The correct answer is option D.

Explanation:

Sunk costs can be defined as those costs which already been incurred and cannot be recovered anymore. These costs are excluded from business decision making.

It is can be referred to as a cost that is no longer relevant.

The $8 paid for a ticket, after the person starts watching the movie is a sunk cost as it cannot be recovered anymore.

Sunk costs are contrasted to relevant cost which is yet to be incurred in the future. Cost pf machinery, equipment, etc are examples of sunk cost.

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3 years ago

If an investment is producing a return that is equal to the required return, the investment's net present value will be:

harina [27]

The net present value would be zero.

Hope this helped! :)

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3 years ago

A corporation has a $500,000 beginning balance in retained earnings. its net income for the year was $200,000. sales revenue amo

natta225 [31]

Given:
$500,000 beg. balance in retained earnings.
$200,000 net income for the year
$1,000,000 sales revenue
$100,000 dividends declared and paid by year-end

Retained earning is the amount left from net income after dividends have been paid. In the given data, sales revenue is not included in the Retained earnings report. It is reflected in the Income statement which generates the Net income.

Retained Earnings, beg. balance 500,000
Add: Net Income for the year 200,000
Total 700,000
Less: Dividends declared and paid this year (100,000)
Retained Earnings, end balance 600,000

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3 years ago