1) Suppose you wish to retire 35 years from today. You determined that you will need $250,000 per year after you retire, with th
1 answer:
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Answer:
B
Materials Control $ 250
Manufacturing Overhead Control $1,000
Work-in-Process Control $1,250
Explanation:
spoilage rate: 10/1000 = 0.01=1%
the job requires 2,500 goods parts
total part required (considering spoilage)
2,500 /(1-0.01) = 2500/ 0.99 = 2525.2525 = 2525
2525-2500 = 25 spoilage part
<u>Note:</u>
in this case you may think you can simple do 2,500 x 0.01
But if the spoilage rate is high or the amount of high is, then you will have an answer different than the correct method. Stick to the formula given.
25 part x 50 = 1,250
From the work in process, we will subtract this value, we will increase the spoilage materials inventory and charge the diference as actual overhead.
b.
Materials Control $ 250
Manufacturing Overhead Control $1,000
Work-in-Process Control $1,250
Answer:
I will need to invest 64,669.73 dollars now.
Explanation:
We will calcualte the future value of the cabin considering the inflation:
Principal 150,000.00
time 15 years
inflation 0.04000
Amount 270,141.53
Then we calculate the present value of the lump sum at 15 years discounted at 10% which is the yield of the funds
Maturity 270,141.53
time 15 years
rate 0.10
PV 64,669.73
we would need to deposit 64,669.73 today to get enough cash to purchase the bcabin in 15 years.