Answer:
C. $ 32,742
Explanation:
The cost per equivalent unit were $ 1.35 for direct materials and $ 5.20 for conversion costs.
The Ending Work In Process has Equivalent Units 9000 complete as to materials and 44% complete as to Conversion Costs.
So the costs will be
Materials = 9000 *100% * $ 1.35 = $ 12150
Conversion = 9000 * 44% * 5.20 = $ 20592
Total Costs $ 32742
The Ending Work in Process costs are found by multiplying the unit costs with the Equivalent number of units multiplied with the percentage of completion.
Answer:
Answer for Question 1 is False
Answer for Question 2 is False
Answer for Question 3 is True
Answer for Question 4 is True
Answer for Question 5 is True
Explanation:
1. Debenture bonds include unsecured bonds but do not include mortgage bonds and sinking bonds.
2. Callable bonds are bonds issued by the issuer before the maturity period.
3. True about market rate.
4. True about Annual interest.
5. True about the Present value of a bond.
That statement is False.
An Entrepreneur is a person who sets up a business or businesses, taking on financial risks in the hope of profit.
Answer:
The present value of the cashflows will be $12830.30
Explanation:
The present value of the cashflows can be calculated by dividing the cash flows by the appropriate discount rate and for the appropriate time period.
The present value of the given cash flows will be,
Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n
As the first payment is received today, it will already be in the present value so it will not be discounted.
Present value = 2000 + 3000 / (1+0.1) + 5000 / (1+0.1)^3 + 7000 / (1+0.1)^5
Present value = $12830.295 rounded off to $12830.30
Answer:
Firm should not shut down, as it is able to cover its Average Variable Cost
Explanation:
Perfect Competition firms in Short Run : The firms produce even if their average revenue (price) < their average total costs (AC). They continue production until Average variable cost (AVC) ≥ per unit price (P) i.e average revenue (AR). This is called Shut Down Point. P lower beyond AVC implies that firm won't continue even in short run.
Given : Variable Cost (VC) = 500 ; Revenue (R) = 510
Average Variable Costs & Average Revenue are variable costs & revenue, per unit quantity. AVC = VC / Q ; AR (P) = R / Q
R i.e 510 > VC i.e 500
So, R/ Q i.e AR is also > VC / Q i.e AVC
Since AVC > AR (P), firm should not shut down
