Answer:$687,700
Explanation:
$
Direct Materials 298,700
Add: Direct Labour 132,200
--------------
Prime Cost 430,900
Factory Overhead 264,200
Add: Opening WIP 118,700
Less: Closing WIP 126,100
--------------
256,800
--------------
Cost of Good Manufacture 687,700
----------------
Answer:
The answers are:
1. combined producer surplus = $69
2. Alice and Amber (b)
Explanation:
A producer surplus is the difference between how much a producer sells a product in the market, and how much he is willing to sell the product for, if the market price is higher than the price he was willing to sell the product for.
The combined producer surplus of the ladies is the sum of their individual producer surpluses, and it is calculated as follows;
Alice: willing price = $35, market price = $70, therefore surplus
= 70 - 35 = $35
Amber: willing price = $38, market price = $70, ∴ surplus = 70 - 38 = $32
Andy: willing price = $68, market price = $70, ∴ surplus = 70 - 68 = $2
Combined producer surplus = 35 + 32 + 2 = $69
b. In this case the price of the 5 inch pot in the market is $45, Alice and Amber will sell their pots because the price in the market exceeds their willing price of $35 and $38 respectively and they will make producer surpluses of $10 and $7 respectively, but Andi on the other hand will not sell her pot because if she does, she will make a loss, as her willing price is $68 and the market price is $45, if she goes ahead to sell she will incur a loss of $23.
In this scenario, EMOTIONAL INTELLIGENCE should be employed to minimize the differences among the managers. Emotional intelligence refers to the ability to recognize and manage one's emotions as well as that of others. Emotional intelligence can be used in conflict resolution to resolve conflict and to arrive at a conclusion that will recognize and meet everyone needs.
Answer:
FEB 1
Dr Cash $2,782,500
Cr Preferred stock $2,625,000
Cr APIC $157,500
JUL 1
Dr Cash $3,710,000
Cr Preferred stock $3,500,000
Cr APIC $210,000
Explanation:
Preparation of the journal entries
FEB 1
Dr Cash $2,782,500
(52,500 shares* $53 per shares)
Cr Preferred stock $2,625,000
(52,500 shares*$50per shares)
Cr APIC $157,500
($2,782,500-$2,625,000)
JUL 1
Dr Cash $3,710,000
(70,000 shares* $53 per shares)
Cr Preferred stock $3,500,000
(70,000 shares*$50per shares)
Cr APIC $210,000
($3,710,000-$3,500,000)