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musickatia [10]
3 years ago
5

Haberdashery Company has a beginning Work-in-Process Inventory of 39,000 units (40% complete). During the period, 124,000 units

were started and the ending Work-in-Process Inventory consisted of 34,000 units (80% complete). What are the equivalent units for conversion costs using weighted-average process costing?
Business
1 answer:
klasskru [66]3 years ago
3 0

Answer:

156,200 equivalent units

Explanation:

Equivalent units are notional whole units which represent incomplete work and are used to apportion production costs between work in progress and finished work.

Equivalent Units = Degree of work done × units of inventory

There are two (2) methods to compute equivalent units

  1. First in First Out
  2. Weighted Average method

<em>Weighted average method</em>

Under this method, to account for completed units , no distinction is made between work started in previous period and those started this period. It is assumed that for all completed units, 100% of the work required was done in the current period.

We can work out the Equivalent units for Haberdashery Company as follows:

Items                                Units          Workings                 Equivalent units

Completed  units            129,000      100% × 129,000     =           129,000

Closing WIP                      34,000        80% ×   34000     =             27,200

Total equivalent units                                                                 156,200

<em>Note the completed units = opening inventory + newly introduced units - closing inventory </em>

Completed units= 39,000 + 124,000 - 34,000

                           = 129,000 units.

Equivalent units for conversion cost = 129,000 +27,200 = 156,200 units

                       

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Epley Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the dividends are expected to grow at 4
rusak2 [61]

Answer:

The cost of equity using the DCF method: 4.39%.

The cost of equity using the SML method: 15.01%.

Explanation:

a. The cost of equity using the DCF method:

We have: Current stock price = Next year dividend payment / ( Cost of equity - Growth rate) <=> Cost of equity = Next year dividend payment/Current stock price + Growth rate = 0.3 x 1.04/80 + 4% = 4.39%.

b. The cost of equity using the SML method:

Cost of equity = Risk free rate + beta x ( Market return - risk free rate); in which Risk free rate is rate on T-bill.

=> Cost of equity = 6.3% + 1.3 x ( 13% -6.3%) = 15.01%.

6 0
3 years ago
In the small country of Economerica, there are 6 thousand people employed, 1 thousand people unemployed, and 3 thousand people o
irakobra [83]

Answer: B. 20.00%

Explanation:

Unemployment rate does not include those who have given up on finding a job.

Unemployment rate = Unemployed people / Labor force

Unemployed people:

= Original unemployed + half the new graduates

= 1,000 + (1,000 / 2)

= 1,500 people

Labor force:

= Unemployed + employed people

= 1,500 + 6,000

= 7,500 people

Unemployment rate:

= 1,500 / 7,500

= 20%

3 0
3 years ago
Carol Thomas will pay out $14,000 at the end of the year 2, $16,000 at the end of year 3, and receive $18,000 at the end of year
Fittoniya [83]

The net value of the payments vs. receipts in today's dollars is ($11,102).

<h3>What is the present value?</h3>

The present value of future cash flows is the current value or the value in today's dollars.  It is computed by discounting the future values at the appropriate discount rate.

The present value can be computed using the Present Value formula, an online finance calculator, or the PV factor table.

Formula

PV=FV \frac{1}{(1+r)^{n}}

PV = present value

FV = future value

r = rate of return

{n} = number of periods

<h3>Data and Calculations:</h3>

Interest rate = 12%

Period     Cash flow     PV Factor     PV

Year 2     ($14,000)       0.797        -$11,158 ($14,000 x 0.797)

Year 3    ($16,000)        0.712        -$11,392 ($16,000 x 0.712)

Year 4     $18,000        0.636         $11,448 ($18,000 x 0.636)

Net present value of cash flows   -$11,102

Thus, the net value of the payments vs. receipts in today's dollars is ($11,102).

Learn more about present value at brainly.com/question/20813161

4 0
2 years ago
Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are al
inna [77]

Answer:

From maintenance to department B will be allocated 85,333 dollars

Explanation:

We distribute maintenance over personnel and operating and then,

we distributed the accumulated in personnel over the operating department:

\left[\begin{array}{cccccc}&Maintenance&Personnel&Dep A&Deb B\\$maintenance-hours&&800&960&640\\$employes&&&160&480\\$Direct \: Cost&320,000&80,000&160,000&240,000\\$Allocate A&-320,000&106,667&128,000&85,333\\$Subtotal&&186,667&288,000&325,333\\$Allocate J&&-186,667&46,667&140,000\\$Total&&&334,667&465,333\\\end{array}\right]

<em><u>For the given question it would be:</u></em>

total maintenance-hours: 800  + 960 + 640 = 2,400

<u>allocation of maintenance:</u>

320,000 x   640/2400 = 85,333

4 0
3 years ago
Describe the short run effects of each of the following socks on the aggregate price level and aggregate output. a. The governme
zhannawk [14.2K]

Answer:

The answer is

A: Aggregate price level increases and aggregate output decreases

B. Both aggregate price level aggregate output increases

C. Aggregate price level increases and aggregate output decreases

Explanation:

A. This government action will increase the aggregate price level increases due to inflation. Aggregate output will decrease due to the increase in cost of product (high wage to labor)

B. Because of the increased spending Investment in solar program, both aggregate output and aggregate price level increase.

C. Due to the severe weather destroyed crops, aggregate price level increases and aggregate output decreases. This happened because there will be decrease in supply of crops.

8 0
3 years ago
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