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pashok25 [27]
2 years ago
12

Manufacturing uses normal costing for its​ job-costing system, which has two​ direct-cost categories​ (direct materials and dire

ct manufacturing​ labor) and one​ indirect-cost category​ (manufacturing overhead). The following information is obtained for:_____.
• Total manufacturing costs, $8,450,000 • Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs) • Work-in-process inventory on January 1, 2017, $390,000 • Cost of finished goods manufactured, $8,020,000
Requirements:
1. Use information in the first two bullet points to calculate​ (a) direct manufacturing labor costs in and​ (b) cost of direct materials used in .
2. Calculate the ending​ work-in-process inventory on December​ 31, 2011.
Business
1 answer:
Anvisha [2.4K]2 years ago
3 0

Answer:

Results are below.

Explanation:

Giving the following information:

Total manufacturing costs, $8,450,000

Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs)

Work-in-process inventory on January 1, 2017, $390,000

Cost of finished goods manufactured, $8,020,000

<u>First, we need to calculate the direct material and direct labor:</u>

Direct labor= Manufacturing overhead allocated/2.5

Direct labor=  3,375,000 / 2.5

Direct labor= $1,350,000

Total manufacturing costs= Direct material + direct labor + allocated overhead

8,450,000= Direct material + 1,350,000 + 3,375,000

Direct material= $3,725,000

<u>Finally, the ending work-in-process:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

8,020,000= 390,000 + 8,450,000 - Ending WIP

Ending WIP= $820,000

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FinnZ [79.3K]

Answer:

. E. combined ratio after dividends minus the investment yield

Explanation:

The operating ratio for a PC insurer

can be regarded as the comparison of total expenses of a company compared to net sales generated or the generated revenue. The operating ratio gives the measurement of a overall operational profitability of a firm from both underwriting as well as investment activities. It can be calculated by finding the ratio of

(property's operating expense after substraction of depreciation) and ( the gross operating income). It should be noted that The operating ratio for a PC insurer equals combined ratio after dividends minus the investment yield.

8 0
2 years ago
Marginal revenue product is the: a. change in total output resulting from a unit change in the quantity of a variable input. b.
VMariaS [17]

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged

Explanation:

6 0
2 years ago
The definition of inventory includes which of the following items? (Select all that apply.) a) items used currently in the produ
Yanka [14]

Answer:

Items a) and b)

a) items used currently in the production of goods to be sold items

b) held for resale items currently in production for future

Explanation:

Inventory consists of current assets to be used in production of final goods or are the ones which are final goods and held for sale.

In the given case also, statement a includes raw materials, which are used to make the final good to be sold, which is a part of inventory.

Further, statement b includes work in production or final goods which are currently in production but would be resold.

The items which are kept for their use as like machinery or furniture or which shall be disposed are not inventory but are in fixed assets category.

3 0
3 years ago
Joint Cost Cheyenne, Inc. produces three products from a common input. The joint costs for a typical quarter follow: Direct mate
Drupady [299]

Answer:

a. Total revenue from the 3 products:

= $75,000 + $80,000 + $30,000

= $185,000

Total costs at the split-off point:

= $45,000 + $55,000 + $60,000

= $160,000

Gross profit currently being earned

= Total revenue - Total costs

= $185,000 - $160,000

= $25,000

b. Incremental revenue from product A:

= $116,000 - $75,000

= $41,000

Incremental costs = Rent for special equipment + Materials and labor cost

= $17,500 + $12,650

= $30,150

Incremental gross margin = Incremental revenue - Incremental costs

= $41,000 - $30,150

= $10,850

So, if product A is further processed, quarterly profits will increase by $10,850.

7 0
3 years ago
Hibiscus Co has a debt-equity ratio of 0.80. The firm is analyzing a new project which requires an initial cash outlay of $300,0
morpeh [17]

Answer:

$321,600

Explanation:

debt equity ratio = debt / equity

since the debt to equity is 0.8, that means that for every $ invested from equity, $0.80 will be borrowed. If the new project requires an initial cash outlay of $300,000:

  • then $300,000 / $1.80 = $166,667 will be new equity
  • and $133,333 will be new debt

total cost of initial outlay including flotation costs = ($166,667 x 1.09) + ($133,333 x 1.0495) = $181,667 +  $139,933 = $321,600

flotation costs include all the costs associated with issuing new stocks or taking new debt.

8 0
3 years ago
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