Answer:
the cost of ending inventory is $1,680
Explanation:
The computation of the cost of ending inventory is shown below:
But first determine the ending units
Ending inventory units is
= 30 units + 34 units + 61 units + 160 units -271 units
= 14 units
Now
The Cost of ending inventory is
= 14 units × $120
= $1,680
hence, the cost of ending inventory is $1,680
And, the same is to be considered
Answer:
Multiple IRRs:
Said another way, Multiple IRRs occur when a project has more than one <em>internal rate of return.</em> The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).
Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the <em>hurdle rate</em>. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.
Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.
<em>So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.</em>
Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.
Period 0 1 3 3 4 5
Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000
The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.
Cheers!
<span>A reference is a person who will attest to your ability to perform a particular job. A person has to face several examinations before he receives a job through an employer. Employers need to check the individual's background of previous performance, experience, and skills. A reference could provide the information needed for that examination.</span>
Answer:
Materials:
price 800U
quantity 510 F
Labor:
rate 1,860 F
efficiency 1,740 U
Explanation:
DIRECT MATERIALS VARIANCES
std cost $5.10
actual cost $5.30
quantity 4,000
price variance $(800.00)
std quantity 4000.00
actual quantity 3900.00
std cost $5.10
quantity variance $510.00
DIRECT LABOR VARIANCES
std rate $8.70
actual rate $8.40
actual hours 6,200
rate variance $1,860.00
std hours 6000.00
actual hours 6200.00
std rate $8.70
efficiency variance $(1,740.00)
To
determine what the depreciation of an asset using straight line method, the
formula to be used is:
(Initial
cost of machine – salvage value) divided by estimated useful life
So in
this problem:
Initial Cost
- $135000
Salvage
Value – $15000
Estimated
Useful Life – 5 years
Plug that
in the formula
Annual
depreciation = ($135000 - $15000) / 5
= $120000/
5
= $24,000
The first
year depreciation for the machine is $24000 because the company bought it in
the beginning of the year. (So there is no need to divide this by 12 months)
To record
this:
Depreciation
Expense $24000
<span> Accumulated Depreciation $24000</span>
