Answer:
Total balance in the work-in-process inventory account on September 30th was $ 121000 + $ 110825= $ 231825
Explanation:
Cost per equivalent unit for material = $ 5.50
Equivalent units of materials = 22,000
Cost of Materials = $ 121,000
Cost per equivalent unit for labor and overhead = $ 5.50
Equivalent units of materials = 20,150
Cost of labor and FOH = $ 110825
Total balance in the work-in-process inventory account on September 30th was = Material + Labor + OH= $ 121000 + $ 110825= $ 231825
Answer:
Ke 0.08690 = 8.69%
Explanation:
<u>The capital assets price model formula(CAPM) is as follows:</u>
risk free = 4% = 4/100 = 0.04
market rate = 11% = 11/100 = 0. 11
premium market: (market rate - risk free) = (0.11-0.04) = 0.07
Beta(non diversifiable risk) 0.67
Ke 0.08690
Answer:
a. Is JV a variable interest entity (VIE)?
Yes, JV should be considered a variable interest entity. Basically both AutoCo and ElectricCo share JV's board, but ElectricCo didn't have the money to start a company or even be part of a joint venture. ElectricCo's equity is financed by AutoCo, so ElectricCo has basically no no equity at risk. Even the debt acquired by JV is backed by AutoCo, but AutoCo does not control JV on its own.
Basically ElectricCo's contribution is technology, and AutoCo provides everything else, but both control the company with one side (ElectricCo) not having enough money to invest but doing so through financing.
b. Which entity, if any, should consolidate JV?
AutoCo must include JV in its consolidated balance sheet since it owns 60% of the company and the products manufactured by JV are sold under AutoCo's brand.
Answer:
The total cost of producing 3,000 axles is $255,000
Explanation:
The computation of the total cost is shown below:
= Total per unit manufacturing costs × total number of axles produced
= $85 × 3,000 axles
= $255,000
The total manufacturing includes all costs such as Direct materials, direct manufacturing labor, Variable manufacturing overhead and, Fixed manufacturing overhead.
Answer:
Price = $40
P/E ratio = 10 times
Explanation:
The formula to compute the price earning ratio is shown below:
Price-earnings ratio = (Market price per share) ÷ (Earning per share)
where,
Market price per share = Next year dividend ÷ (Required rate of return - growth rate)
Next year dividend equal to
= Earnings × (1 - plow back ratio)
= $4 × (1 - 0.30)
= $2.8
Growth rate is = 20% × 0.30 = 6%
And, the required rate of return is 13%
So, the market price per share would be
= 2.8% ÷ (13% - 6%)
= $40
Now the price earning ratio would be
= $40 ÷ $4
= 10 times
