One who buys, stores, and resells large quantities of goods

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricat

Nataly [62]

Answer:

$2.90 per unit

Explanation:

The computation of the cost per equivalent unit of conversion is attached below:-

The formulas are shown below:-

Equivalent material = Direct material × Percentage completion

Equivalent conversion = Conversion × Percentage completion

The cost per equivalent unit come from

= Total cost ÷ number of equivalent units

hence, the cost per equivalent unit of conversion is $2.90 per unit

8 0

3 years ago

Smathers Corp. stock has a beta of 1.23. The market risk premium is 7.00 percent and the risk-free rate is 2.86 percent annually

Schach [20]

Answer:

the company's cost of equity is 11.47 %.

Explanation:

The Company`s cost of equity is the return that is required by holders of Common Stocks.

The Cost can be determined using the Capital Asset Pricing Model (CAPM) as follows :

Cost of Equity = Return on Risk Free Rate + Beta × Return on Market Portfolio

= 2.86 % + 1.23 × 7.00 %

= 11.47 %.

6 0

3 years ago

Jane Cagle’s company wants to establish kanbans to feed a newly established work cell. The following data have been provided. Ho

SCORPION-xisa [38]

Answer:

22.5

Explanation:

According to the given situation, the computation of the number of kanbans is shown below:-

Number of kanbans needed = [(Demand × Lead time) + (Demand × Safety stock)] ÷ Kanban size

= (750 × 0.5) + (750 × 0.25) ÷ 25

= 22.5

Therefore for computing the number of Kanbans we simply applied the above formula by considering all items

4 0

3 years ago

A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of

Ad libitum [116K]

Answer:

Apportioned set-up cost

Plus =$21,600

Max=$43,200

Explanation:

Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.

Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.

The cost driver in this scenario is the number of set-ups

Activity rate per driver is calculated as:

Activity overhead for the period / Total cost drivers for the period

So, we can apply this formula to the scenario above:

Set-up overhead= $64,800

Total set-ups for the period = 20 + 40 = 60

Overhead cost per set-up = $64,800/60=1,080

Set-up cost allocation:

Plus - 20 × 1,080=$21,600

Max- 40 × 1,080=$43,200

Apportioned set-up cost

Plus =$21,600

Max-=$43,200

3 0

3 years ago

The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,405,000, $141,000 in the common stock account,

spayn [35]

Answer: $589,500

Explanation:

The cash flow to the creditors in 2016 will be calculated as:

= $94,500 – ($1,590,000 - $1,405,000)

= $94,500 – $1,590,000 + $1,405,000

= -$90,500

For the shareholders, the cash flow in 2016 will be:

= $146,000 – [($151,000 + $2,960,000) – ($141,000 + $2,660,000)]

= -$164,000

Capital spending = $970,000

Cash flow due to the net working capital investment = -$126,000

OCF

= -$90,500 + (-$164,000) + $970,000 + (-$126,000)

= $589,500

3 0

3 years ago