Answer:
Statement of Cost per equivalent unit
Particulars Materials Conversion
Cost of beginning work in process $8,130 $9,128
Add: Costs added during the month <u>$226,500</u> <u>$284,232</u>
Total cost A $234,630 $293,360
Number of equivalent units B <u> 9,900 </u> <u> 9,400 </u>
Cost per equivalent unit (A/B) <u>$23.70 </u> <u>$31.21 </u>
Answer:
Contribution per unit of scare resource (in hour) = $24 per hour
Explanation:
The question falls under the limiting factor analysis
<em>When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that </em><em>it maximizes the contribution per unit of the scare resource.</em>
Therefore Santario Company should allocate the machine hours to maximize the contribution per unit of machine hour.
Contribution per unit of scare resource is determine as follows:
Contribution per unit of scare resource for Model K-3
Contribution per unit of Model K-3 = $6
Machine time per unit = 15 minutes
<em>Contribution per unit of scare resource in minutes</em>
=Contribution per unit/Machine time per unit
= 46/15 minutes
= $0.4 per minute
Contribution per unit of scare resource (in hour)
$0.4 per minutes× 60
= $24 per hour
Answer:
False
Explanation:
It is FALSE that Month-end and Year-end process helps to write-off bad debts.
This is because both month-end and year-end processes are processes specifically carried out to adjust all account balances to make and depict the actual financial activities of the firm. This assists the firm's management team to make a further decision, but not to just write-off bad debts.
Bad debt is written off only when a customer invoice is deemed to be uncollectible.
Answer:
B. $6,448,519
Explanation:
The computation of the present value of this growing annuity is given below:
PVA = [Cash flow at year 1 ÷ (interest rate - growth rate)] × {1 - [(1 + growth rate) ÷ (1 + interest rate)^number of years}
= [$675,000 ÷ (0.18 - 0.13)] × [1 - (1.13 ÷ 1.18)^15]
= $6,448,519
Hence, the correct option is b.
