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victus00 [196]
2 years ago
12

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the fir

st processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 10,600 65% Conversion costs $ 12,800 30% A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 142,100 Conversion costs $ 359,500 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first department for the month is closest to:
Business
1 answer:
Aleksandr-060686 [28]2 years ago
5 0

Answer:

$46.04

Explanation:

It is important to note that Gunes Corporation uses the weighted-average method. This means we are only interested in the Equivalent units completed and transferred and units in working process.

Total Conversion Cost

Consider the cost in opening work in process and cost during the year.

Total Conversion Cost = $12,300 + $359,000 = $371,300

Equivalent Units

Consider work completed in units completed and transferred and units in working process.

Equivalent Units = 7,400 x 100% + 1,900 x 35 % = 8,065 units

<em>The units in working process have been calculated as :</em>

Units in working process = 800 + 8500 - 7,400 = 1,900

Cost per Equivalent Units

Cost per Equivalent Unit = Total Cost ÷ Total Equivalent Units

                                           = $371,300 ÷ 8,065 units

                                           = $46.04

The cost per equivalent unit for conversion costs for the first department for the month is closest to $46.04

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A stock currently sells for $25 per share and pays $0.24 per year in dividends. What is an investor's valuation of this stock if
Kisachek [45]

Answer:

B) $26.30

Explanation:

To determine an investor's valuation of the stock we must calculate the present value of next year's dividend and selling price:

present value = [dividend / (1 + rate)] + [selling price / (1 + rate)]

present value = [$0.24 / (1 + 15%)] + [$30 / (1 + 15%)] = $0.21 + $26.09 = $26.30

4 0
2 years ago
"Ethan (single) purchased his home on July 1, 2009. He lived in the home as his principal residence until July 1, 2016, when he
melisa1 [442]

168,000 is amount of the gain is Ethan allowed to exclude from his gross income

Solution:

Ethan's post 2009 non-qualified use is 2 years.

He owned the property for 10 years so he is not allowed to exclude 20% of the gain

= $210,000 × 20% = $42,000

He is allowed to exclude = ($210,000 - $42,000)

                                          = $168,000

7 0
3 years ago
Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$20 par value, 10
gogolik [260]

Answer:

1. See the attached excel file for the journal entries.

2. Ending balance of retained earning is $346,125

3.Total Stockholder's Equity is $1,616,125

Explanation:

1. Prepare journal entries to record each of these transactions.

Note: See the attached excel file for the journal entries.

The following are tge workings:

w.1: Treasury stock = $5,000 * $20 = $10,000

w.2: Dividend payable = (Issued and outstanding shares - Shares repurchase) * Dividend per share = (60,000 - 5,000) * $4 = 55,000 * $4 = $220,000

w.3: Cash = Number of shares sold * Selling price per share = 1,875 * $24 = $45,000

w.4 = Treasury stock = Number of shares sold * Treasury price per share = 1,875 * $20 = $37,500

w.5: Additional paid in capital = Number of shares sold * (Selling price per share - Treasury price per share) = 1,875 * ($24 - $20) = $7,500

w.6: Cash = Number of shares sold * Selling price per share = 3,125 * $17 = $53,125

w.7 = Treasury stock = Number of shares sold * Treasury price per share = 3,125 * $20 = $62,500

w.8: Balancing figure = Treasury stock (w.7) – Cash (w.7) - Additional paid in capital (w.5) = $62,500 - $53,125 - $7,500 = $1,875

w.9: Dividend payable = (Issued and outstanding shares * Dividend per share = 60,000 * $4 = $240,000

2. Prepare a statement of retained earnings for the year ended December 31, 2019.

Kohler Corporation

Statement of Retained Earnings

On December 31, 2019

<u>Particulars                                                  Amount ($)  </u>

Opening balance                                       400,000

Income for the year                                    408,000  

Dividend Paid (220,000 + 240,000)        (460,000)

Loss on sale of treasury stock               <u>        (1,875)    </u>

Ending balance                                     <u>      346,125   </u>

3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2019.

Kohler Corporation

Stockholder Equity Section of Balance sheet

At December 31, 2019

<u>Particulars                                                        Amount ($)</u>

Common stock issued ($20 * 60,000)               1,200,000

Paid-in capital in excess of par v - c. stock     <u>        70,000  </u>

Total contributed Capital                                     1,270,000

Retained Earnings                                      <u>      346,125  </u>

Total Stockholder's Equity                             <u>     1,616,125  </u>

Download xlsx
3 0
3 years ago
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
g100num [7]
Have no clue sorry that is not the answer
8 0
2 years ago
A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual
xenn [34]

Answer:

Location A is superior to up 40 units. From there Location B is better

Explanation:

Giving the following information:

Location A:

Fixed costs of $100,000

Variable costs of $13,000 per unit.

Location B:

Fixed costs of $300,000.

Variable costs of $8,000 per unit.

The finished items sell for $18,000 unit.

Contribution margin Location A= 18000-13000= 5,000

Contribution margin Location B= 18000 - 8000= 10,000

Income formula location A= 5000*Q - 100000

Income formula location B= 10000*Q- 300000

5000*Q - 100000= 10000*Q - 300000

200000= 5000Q

Q= 40 units

Location A is superior to up 40 units. From there Location B is better.

6 0
3 years ago
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