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nexus9112 [7]
3 years ago
9

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,100 and is

paid at the beginning of the first year. Sixty percent of the premium applies to manufacturing operations and forty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?
Business
1 answer:
gulaghasi [49]3 years ago
3 0

Answer:

Period cost=  $840

Product cost=  $1260

Explanation:

Product costs are the direct costs involved in producing a product.

Period costs are not directly tied to the production process.  

The insurance premiums that a company pays for nonmanufacturing protection will be expensed in the period in which the insurance premiums expire. However, the insurance premiums for the manufacturing operations will become part of the product costs as the insurance premiums expire.

<u>In this exercise:</u>

Period cost= 2100*0,40= $840

Product cost= 2100*0,60= $1260

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3 0
3 years ago
To estimate the market value of a publicly traded bond that has a broad market with frequent trading, it is usually best to mult
Aleks04 [339]

B. False

As the market value of a public trade bond that has a broad market with frequent trading is determined by multiplying no of bonds by the bond's market price.

Finance is a wide time period that describes sports associated with banking, leverage or debt, credit, capital markets, money, and investments. basically, finance represents cash control and the procedure of acquiring wished budget.

The bond market—frequently referred to as the debt marketplace, constant-profits market, or credit marketplace—is the collective call given to all trades and troubles of debt securities. Governments commonly difficulty bonds so that they will increase capital to pay down money owed or fund infrastructural upgrades.

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6 0
1 year ago
Which of the following will require a recalculation of weighted-average shares outstanding for all years presented?
FromTheMoon [43]

Answer:

The correct option is A, stock dividends and stock splits

Explanation:

Stock dividends refers to paying dividends by issuing more shares to shareholders instead of paying in cash which may  be required to fund investment projects,since it increases the number of shares overall, it requires  re-computation of weighted average number of shares.

Stock splits means splitting the current number of shares into multiples in order to reduce the price per share making it affordable to investors,hence the number of weighted average shares is also impacted.

8 0
3 years ago
The 1-year, 2-year. 3-year,and 4-year risk-free zero rates are 4%, 4.5%, 4.75%, and 5% with continuous compounding. What is the
dybincka [34]

Answer:

5.25%

Explanation:

Mathematically, investing at the 3-year risk-free zero rate should be the same as investing at a 2-year risk-free zero rate and one-year forward rate beginning in two years as shown thus

(1+S3)^3=(1+S2)^2*(1+y2y1)^1

S3=4.75%

S2=4.5%

y2y1=unknown

(1+4.75%)^3=(1+4.5%)^2*(1+y2y1)

1+y2y1=(1+4.75%)^3/(1+4.5%)^2

y2y1=((1+4.75%)^3/(1+4.5%)^2)-1

y2y1=5.25%

6 0
3 years ago
During August, the Filtering Department of Speedwell, Inc. Had a beginning Work-IN Process Inventory balance of 160 units with c
Veseljchak [2.6K]

Answer: 320 units

Explanation:

The equivalent units of production for transferred in units in the Filtering Department in August under the first-in, first-out (FIFO) method goes thus:

Total units completed= 160 units + 290 units = 450 units

Beginning WIP = 160 units

Ending WIP = 30 units

Equivalent units of production:

= 450 + 30 - 160

= 480 - 160

= 320 units

8 0
3 years ago
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