Answer and Explanation:
1. The computation of contribution margin per pound is shown below:-
Product A Product B Product C
Contribution margin per unit $35.20 $11.60 $24.00
Direct materials $26.40 $12.00 $12.00
Material cost $3 $3 $3
Material per unit $8.80 $4.00 $4.00
($26.40 ÷ $3) ($12.00 ÷ $3) ($12.00 ÷ $3)
Contribution margin per pound $4 $2.90 $6
($35.20 ÷ $8.80) ($11.60 ÷ 4.00) ($24.00 ÷ $4.00)
2.
Product A Second
Product B Third
Product C First
The difference between salaries and wages is that a salary is a fixed amount of money per pay period and a wage is money earned by the hour.
Answer:
The journal entry is as follows:
Retained earnings A/c Dr. $18 million
To common stock $0.30 million
To capital paid in excess A/c $17.70 million
(To record the stock dividend issued at 1%)
Working notes:
Shares issued = 1% of 30 million
= 0.30 million
Retained earnings:
= 0.30 million × $60 per share
= $18 million
Common stock:
= 0.30 million × $1 par value
= $0.30 million
Capital paid in excess:
= Retained earnings - Common stock
= $18 million - $0.30 million
= $17.7 million
Answer: C. II and III
Explanation:
There are 5,000,000 shares of PDQ Corporation as of when they declared the rights offering. This means that every share will get a right to buy stock.
However, as only 1,000,000 shares are being offered per the 5,000,000 shares outstanding it means that one stock may be purchased for every 5 rights.
A customer who owns 500 shares will therefore get 500 rights.
However with one stock up for sale per 5 rights they will receive the opportunity to buy;
= 500/5
= 100 shares
