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Ivenika [448]
3 years ago
15

Bismite Corporation purchases trees from Cheney lumber and processes them up to the splitoff point where two products (paper and

pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: 250 trees paper pencil casings paper pencil casings Trees processed: Production: 500,000 sheets 250,000 400,000 at $0.10 per page 250,000 at $0.20 per casing Sales The cost of purchasing 250 trees and processing them up to the splitoff point to yield 500,000 sheets of paper and 250,000 pencil casings is $20,000. Bismite's accounting department reported no beginning inventory a) What is the total sales value at the splitoff point for paper? b) What is the total sales value at the splitoff point of the pencil casings? d) If the sales value at splitoff method is used, what is the approximate production cost for each pencil casing? e) If the sales value at splitoff method is used, what is the approximate production cost for each paper sheet? f) If the sales value at splitoff method is used, what are the approximate joint costs assigned to ending inventory for paper?
Business
1 answer:
Elis [28]3 years ago
4 0

Answer:

Answer are as follow:

A: $50,000.

B: $50,000.

D: $0.04.

E: $0.02

F: $2,000.

Explanation:

A.total sale value at split off point for paper = paper produced * sale price per page

=>500,000 * $0.10

=>$50,000.

b.total sale value at splitoff point for pencil casings =250,000*$0.20

=>$50,000.

d) approximate production cost for all pencil casings:

total cost till split off point *[ (sale value of pencil casing) /(sale value of pencil casing + sale value of paper)]

=>$20,000 * [$50,000 / ($50,000+50,000)]

=>$20,000*[1/2]

=>$10,000

$10,000is cost of 250,000 pencil casings.

=>cost for each pencil casing = $10,000 / 250,000

=>$0.04.

e.) first let us know the production cost for all paper sheet:

=> total cost [ sale value of paper sheet / (sale value of paper sheet)+(sale value of pencil casing)]

=>$20,000 *[50,000 / (50,000+50,000)]

=>$10,000.for 500,000 sheets of paper

=>$10,000 / 500,000 =>$0.02 per sheet of paper

f.) value = paper in ending inventory *cost per sheet

=>(500,000 - 400,000) paper sheets *$0.02

=>100,000 paper sheets *$0.02

=>$2,000.

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blondinia [14]

Answer:

$29,000

Explanation:

Given that:

  • Draw per week: $1,100
  • Commission rate: 12%
  • Sales for Jim were $205,000 for the month.
  • 4 weeks in a month

Assuming a four-week month, Jim's commission :

Commission on revenue + commission of total draws

= $205,000*12% + 4*$1,100

= $24,600+ $4,400

= $29,000

Hope it will find you well.

3 0
3 years ago
Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 9%,
solniwko [45]

Answer:

cost of common equity = 14.46%

WACC = 11.29%

accept = Project A

Explanation:

Cost of common equity is the return that is required by Holders of Common Stock.

The available details can be used to calculate the cost of common equity using the Dividend Growth Model as follows :

Cost of common equity = (Next year`s Dividend / Current Market Price of a Stock) + Expected Growth

                                        = ($2.20/$26)+6%

                                        = 14.46%

WACC is the minimum return that a project must offer before it can be accepted.It shows the risk of the company.

Cost of Debt = Market Interest Rate × (1 - tax rate)

                     = 9.00% × (1-0.40)

                     = 5.40%

Capital Source                Weight                 Cost                 Total

Debt                                   35%                  5.40%               1.89%

Common Equity                65%                 14.46%               9.40%

Total                                 100%                 19.86%              11.29%

Therefore WACC is 11.29%

When evaluating projects, Compare the Project`s Internal Rate of Return (IRR) to the WACC.

<u>Project A</u>

IRR 12% > WACC 11.29%

Therefore Accept

<u>Project B/S</u>

IRR 11% < WACC 11.29%

Therefore Do Not Accept

3 0
3 years ago
Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-d
ankoles [38]
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3 years ago
Management at Gordon Electronics is considering adopting a bonus system to increase production. One suggestion is to pay a bonus
tekilochka [14]

Answer:

  • <u><em>4,099 units or more</em></u>

Explanation:

The cumulative distribution of a random variable X that follows a normal distribution is given by the area undear the "bell curve" and the values are given by the corresponding table for the standard normal distribution.

The standardized value of the variable X is called Z and is calculated with the formula:

          Z=\dfrac{X-\mu}{\sigma}

Where:

         \mu=mean=4,000

         \sigma=standard\text{ }deviation=60

You read the Z-value for which the probability is greater than or equal to 5% in the table for the values of the area to the right of Z. Using probability = area under the curve ≥ 5%, the Z-value is 1.645 (interpolating between p = 0.0495, Z = 1.64 and p = 0.0505, Z = 1.65).

Substituting in the formula for Z:

  • 1.645 = (X - 4,000) / 60

  • X= 60 × 1.645 + 4,000 = 4,098.7 ≈ 4,099

Hence, the bonus will be paid on 4,099 units or more.

3 0
3 years ago
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kykrilka [37]

Double jeopardy is a legal defense which, after a clear acquittal or conviction, does not preclude an accused person from being charged on the same charge again.

Explanation:

The Fifth Amendment to the Constitution states that "no one is twice liable to be targeted at the same offense." The Double-jeopardy Clause bars any second prosecution or conviction and forbids multiple penalties of the same offense.

Double jeopardy does not shield suspects from being charged for multiple offenses, while separate charges are prohibited for the same crime.

For example,  An convicted person could again be charged on the "less included crime" of involuntary killing.

6 0
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