Answer:
a.
6.24%
b.
9.11%
Explanation:
a.
P = [ C x ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Where
F = Face value = $1,000
P = Price = Price x ( 1 - Floatation cost rate ) = $1,100 x ( 1 - 4% ) = $1,056
C = Coupon payment = Face value x Coupon rate x semiannual fraction = $1,000 x 7% x 6/12 = $35
n = numbers of periods = Numbers of years to maturity x coupon payment per year = 10 years x 2 periods per year = 20 periods
r = YTM x 6/12 = r/2
Placing values in the formula
$1,056 = [ $35 x ( 1 - ( 1 + r/2 )^-20 ) / r/2 ] + [ $1,000 / ( 1 + r/2 )^20 ]
r = 3.1194% x 2 = 6.23885% = 6.24%
b.
Now use the following formula to calculate WACC
WACC = ( Cost of Equity x Wight of equity ) + ( After tax Cost of debt x Weight of debt )
WACC = ( 12% x 65% ) + ( 6.24% x ( 1 - 40% ) x 35% )
WACC = 7.80% + 1.31%
WACC = 9.11%
The cost of leather used to produce leather jackets falls by 30%. This will result in ________.
a. a decrease in demand.
b. an increase in the quantity demanded.
c. an increase in demand.
There are different kinds of cost. The above scenario will result in an increase in demand.
A reduction in the price of leather jackets often makes more people to buy leather jackets, hence reducing the demand for sweatshirts.If the price of a good is said to falls, the quantity supplied of that good also decreases. The lower the price, the more the demand for that product.
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A company produces a single product. Variable production costs are $12.50 per unit and variable selling and administrative expenses are $3.50 per unit. Fixed manufacturing overhead totals $41,000 and fixed selling and administration expenses total $45,000. Assuming a beginning inventory of zero, production of 4,500 units and sales of 3,850 units, the dollar value of the ending inventory under variable costing would be: Multiple Choice $10,400 $5,850 $8,125 $13,975
Answer:
the third option is correct - $8,125
Explanation:
The calculation of the ending inventory under variable costing is given below:
Ending inventory value (Variable costing) os
= Variable production cost per unit × No. of units
= $12.50 × (4,500 - 3,850)
= $8,125,
Hence, the ending inventory under variable costing is $8,125
Therefore the third option is correct
Can someone look at my resume for my career class please and thank you!
I also have the rubric and directions y’all can look at too.
On the Tokyo Stock Exchange, Honda Motor Company stock closed at ¥2,915 per share on Monday, June 6, 2016. Honda trades as an ADR on the NYSE. One underlying Honda share equals one ADR. On June 6, 2016, the ¥/$ exchange rate was ¥107.65/$1.00. (Round your answer to 2 decimal places.) At this exchange rate, what is the no-arbitrage U.S. dollar price of one ADR?
Answer:
$27.08
Explanation:
Calculation to determine the no-arbitrage U.S. dollar price of one ADR
Using this formula
No-arbitrage U.S. dollar price of one ADR=Stock closed per share /Exchange rate
Let plug in the formula
No-arbitrage U.S. dollar price of one ADR=¥2,915 / ¥107.65
No-arbitrage U.S. dollar price of one ADR=$27.078
No-arbitrage U.S. dollar price of one ADR=$27.08 (Approximately)
Therefore the no-arbitrage U.S. dollar price of one ADR is $27.08
Consider the following potential events that might have occurred to Global on December 30, 2010. Global used $20.9 million of its available cash to repay $20.9 million of its long-term debt. Which of the following statements is correct?
a. Global used $20.9 million of its available cash to repay $20.9 million of its long-term debt.
b. A warehouse fire destroyed $4.8 million worth of uninsured inventory.
c. Global used $5.4 million in cash and $5.5 million in new long-term debt to purchase a $10.9 million building.
d. A large customer owing $3.5 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment.
e. Global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 55%
f. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices.
Answer:
a. Global used $20 million of its available cash to repay $20 million of its long-term debt.
Explanation:
Ray acquired an activity several years ago, and in the current year, it generates a loss of $50,000. Ray has AGI of $140,000 before considering the loss from the activity.
If the activity is a bakery and Ray is not a material participant, what is his AGI?
Answer:
adjusted gross income should be $140,000
Explanation:
The computation of the adjusted gross income is given below:
Given that
There is the loss of $50,000
And, the adjusted gross income prior considering the loss should be $140,000
So here $50,000 loss should be suspended under the rule of the passive loss as ray should not be the material participant
Therefore adjusted gross income should be $140,000
Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $17, direct labor $6, variable manufacturing overhead $3, fixed manufacturing overhead $19, variable selling and administrative expenses $1, and fixed selling and administrative expenses $13. Using a 30% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.)
Answer:
the target selling price is $76.70
Explanation:
The computation of the target selling price is shown below:
= Total cost + 1 × markup percentage
= ($17 + $6 + $3 + $19 + $1 + $13) × (1.30)
= $76.70
hence, the target selling price is $76.70
We simply applied the above formula so that the target selling price could be determined
Wang Co. manufactures and sells a single product that sells for $540 per unit; variable costs are $324 per unit. Annual fixed costs are $836,000. Current sales volume is $4,290,000. Management targets an annual pre-tax income of $1,215,000. Compute the unit sales to earn the target pre-tax net income.
Answer: 9,495 units
Explanation:
First find the contribution margin:
= Sales price - Variable cost
= 540 - 324
= $216 per unit
The unit sales required can be calculated by the formula:
= (Annual pre-tax income target + Fixed cost) / Contribution margin
= (1,215,000 + 836,000) / 216
= 9,495.37 units
= 9,495 units
The rate of earnings is 6% and the cash to be received in 4 years is $20,000. The present value amount, using the following partial table of present
value of $1 at compound interest is
Year
6%
10%
12%
1
0.943
0.909
0.893
2
0.890
0.826
0.797
3
0.840
0.751
0.712
4
0.792
0.683
0.636
a. $12.720
Ob. $16,800
Oc. 513,660
Od. $15.840
Answer:
$15,840
Explanation:
Present value = Future value / (1 + r)^n
Rate, r = 6% = 0.06
Future value = $20,000
Number of years, n = 4
Present value = $20000 / (1 + 0.06)^4
Present value = $20000 / 1.06^4
Present value = $20,000 / 1.26247696
Present value = $15841.873
Using the partial table of present values :
Present value = Future value * PV(6%, 4)
PV at 6%, 4 years = 0.792
Present value = $20,000 * 0.792 = $15,840
Assume that the expected return for A is 10% and the expected return for B is 5.5%. Calculate the expected return on a portfolio consisting of 60% A and 40% B. Give your answer in decimal form to 3 decimals places. For example, 8.6% is 0.086.
Bramble Corp. has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Bramble are 60000 Standard and 40000 Supreme. Fixed expenses are $2400000. How many Standards would Bramble sell at the break-even point
Answer:
160,000 units
Explanation:
Step 1 : Determine the Sales Mix
Bramble : Standard
60000 : 40000
3 : 2
Step 2 : Determine the Overall Break even Point
Break even Point = Fixed Cost ÷ Contribution per unit
= $2400000 ÷ $30
= 80,000
Step 3 : Determine break-even point for Standards
Standards Break even point = 80,000 x 2
= 160,000 units
Thus,
Bramble Corp would sell 160,000 units of Standards at the break-even point
Judd, Inc., owns 35% of Cosby Corporation. During the calendar year 2010, Cosby had net earnings of $300,000 and paid dividends of $30,000. Judd mistakenly recorded these transactions using the fair value method rather than the equity method of accounting. What effect would this have on the investment account, net income, and retained earnings, respectively?
a. Understate, overstate, overstate
b. Overstate, understate, understate
c. Overstate, overstate, overstate
d. Understate, understate, understate
Answer: d. Understate, understate, understate
Explanation:
If using fair value, the effects of net earnings and dividends would not be accounted for. With the equity method however, this would have done leading to the investment account, net income, and retained earnings being understated if using fair value as opposed to equity.
The Equity method would have sent 35% of the net earnings to the investment account which would have increased it. 35% of the Cosby dividends would have been sent to the net income which would have increased it as well and when net income increases, so does retained earnings.
a) "Tranings are are the most important part of any occupation": justify it
Answer:
Training is important because it represents a good opportunity for employees to grow their knowledge base and improve their job skills to become more effective in the workplace. Despite the cost of training for employees, the return on investment is immense if it is consistent.
There are several reasons it is important for employers to initiate training programs for their employees, such as:
It improves skills and knowledge
Employee training programs help improve the knowledge and skills of employees to match the various changes in the industry. These improvements will positively affect the productivity of workers, which can increase the profits and efficiency of an organization. Some of the things employees may learn through training include work ethics, human relations and safety.
It satisfies the recommendations of performance appraisal.
When an organization's employee performance appraisals suggest the need for improvement on a particular subject or skill, training programs can be organized for staff members to help satisfy this requirement. Training can therefore address an identified problem area and work toward a solution.
It prepares employees for higher responsibilities.
Training programs can also help prepare employees who are moving into higher roles and taking on more responsibilities in an organization. These programs will help them learn the skills that are required to function effectively in their new positions. For example, they may be trained in leadership skills or in a specific software they will use in their new role.
It shows employees they are valued.
Implementing training programs in the workplace will help employees feel like the company is invested in them. By continuing to teach your employees new skills and abilities, they will not just become better workers, they will feel like more productive members of the organization. This will improve their morale as well as their workplace capabilities.
It tests the efficiency of a new performance management system.
Employee training programs help an organization test the efficiency and effectiveness of a new performance management system, which will help HR establish clearer performance expectations. Using these systems to train your employees will reinforce the necessity of meeting goals and help employees better understand what is expected of them.
It improves IT and computer skills.
Training programs help employees learn about specific computer skills and IT topics, such as the use of software systems. Companies may train their employees to create graphs and spreadsheets, edit data in their database and understand network arrangements in order to provide a more comprehensive understanding of computers to improve workplace efficiency.
The maximum price that can be asked for the new jPad model is $2,000 at which point they would sell 0 units. It costs Pear $600 to manufacturer and deliver these jPads to their stores. Determine the optimal price for this new jPad, which can be assumed to operate in a monopoly (at least upon introduction).
Answer: $700
Explanation:
Based on the information given in the question, the optimal price for this new jPad, which can be assumed to operate in a monopoly will be calculated thus:
P = 2000+Q
TR = P × Q
TR = (2000 + Q) × Q
TR = 2000Q + Q²
MR = 2000 + 2Q
MC = 600
Since marginal revenue equals to marginal cost, this will be:
MR = MC
2000+2Q = 600
2Q = 2000 - 600
2Q = 1400
Q = 1400/2
Q = 700
The biggest question Sally has for you is about recovering the initial capital invested which she wishes to bundle as the initial building and land costs well as the future roof and common area expenses. The income stream for the apartment complex is only monthly rent money. How much should she charge for monthly rent in order to at least recover the bundled capital invested
Answer:
Sally should charge $1,280 per month for 18 months.
Explanation:
Sally has bought the land for $8,000 and she has invested in constructing the building $12,040. She has further invested $2,000 for future roof and common area expenses amount to $1,000. The total capital she has invested is $23,040. She should charge $1,280 per month for next 18 months in order to cover the bundled capital investment.
Stock dividends distributable should be classified on the:________.
A) income statement as an expense.
B) balance sheet as an asset.
C) balance sheet as a liability.
D) balance sheet as an item of stockholders' equity.
Answer:
a) income statement as an expense
You are the financial manager of the Crossrail 1 project in London. The Board overseeing the project, acting on behalf of the UK Government, has asked you to provide a financial analysis of the project for business planning purposes. With two years to go before the commencement of train operations, you have assembled the most recent estimates of the capital investment cost and net revenues, which were forecast 1 year ago. While the user benefits and ticket revenues are assumed to remain the same each year of the 60-year useful life, it is anticipated that maintenance costs will be higher in the final 30 years of the project. They are shown in Table.
Item of cash flow Today Each year (for the first Each year (for years
(£bn) 30 years) (£bn) 31 to 60) (£bn)
Capital investment -9.4
User benefits (Includes
Time savings, Traffic
congestion relief) 0.843 0.843
Ticket revenues 0.3 0.3
Operational costs and maintenance -0.422 -0.609
For projects such as Crossrail 1, the UK Government typically estimates a 60-year useful life and uses a discount rate of 3.5%.
a) What is the net present value (NPV) of the project?
a. "£15.04".
b. "£8.83".
c. "£7.36".
d. "£16.76".
b) What is the payback period of the project?
a. "13.04".
b. "8.22".
c. "17.60".
d. "7.49".
c) What is the internal rate of return (IRR) of the project?
a. "7.57%".
b. "7.35%".
c. "5.44%".
d. "6.52%".
d) Based on your calculations is Crossrail 1 a viable project at the discount rate?
a. "Yes".
b. "No".
You have been asked by the Board to present an analysis that incorporates more recent cash flow information about the Crossrail 1 project. Before the project becomes operational, the capital investment has been given a worse scenario estimate that is 35% above the forecast in table 1. The Board would like to see the analysis if the net cash inflows will also be 35% below expectation over the 60-year life whether under the existing hurdle rate of 3.5% it would remain viable.
a) What is the net present value (NPV) of the project?
a. "-£2.16".
b. "£4.78".
c. "£3.20".
d. "-£1.80".
b) What is the internal rate of return (IRR) of the project?
a. "2.72%".
b. "3.10%".
c. "1.79%".
d/ "0.67%".
c) Based on your calculations is Crossrail 1 a viable project at the discount rate?
a. "Yes".
b. "No".
Crossrail 1 project is about to start in London.
This project will require an initial investment of 9.4 billion. The project will start earning cash flows from year and it will continue to year 60 which is useful life of the project.
The NPV for the project will be 7.36 which is positive. The correct answer is c.
The payback period for project is 13.04 years which is given in the option a so correct answer is a.
The internal rate of return for the project is b. 7.35 .
Based on our analytics and calculation since NPV is positive so cross rail project is beneficial. The board should consider launching this project.
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The book value of long-term assets is reported on:
Nate borrowed $38,672 from bank and his friends to expand his casino business. Nate set up an aim to pay $2,450 at the end of each week for 16 weeks. Assume each year has 52 weeks. What are the nominal rate per year and the effective interest rate per year?
Answer:
Hence, the Nominal annual rate is 20.28%.
Effective annual rate is 22.43%.
Explanation:
Amount borrowed = $38,672.
Weekly repayment for 16 weeks = $2,500.
Loan repayment = (Loan amount x r) / {1-(1+r)-n}
$2,450 = ($38,672 x r)/{1-(1+r)-16}
r= 0.39%
Weekly interest rate = 0.39%
Nominal annual rate = 0.39 % x 52 weeks = 20.28%
Effective annual rate = [tex](1 + 0.0039^{52} ) - 1[/tex] = 0.2243 = 22.43%
Blue Spruce University sells 4,500 season basketball tickets at $140 each for its 12-game home schedule. Give the entry to record (a) the sale of the season tickets and (b) the revenue recognized after playing the first home game.
Answer:
a. Total revenue received:
= 4,500 * 140
= $630,000
Date Account Title Debit Credit
XX-XX-XXXX Cash $630,000
Unearned revenue $630,000
Revenue is unearned because the games have not been played yet therefore Blue Spruce University has not provided the service for which it was paid and has not earned the revenue.
b. The revenue per game is:
= 630,000 / 12 games
= $52,500
Date Account Title Debit Credit
XX-XX-XXXX Unearned Revenue $52,500
Revenue - Ticket Sales $52,500
Risk is a necessary ‘evil’ evil’, support this assessment and give advice risk
managers on how to resolve the effects.
For a high-risk investment, managers require a high reward.
George has been selling 8,000 T-shirts per month for $8.00. When he increased the price to $9.00, he sold only 7,000 T-shirts.
Which of the following best approximates the price elasticity of demand?
A. -1.2467
B. -1.02
C. -0.5667
D. -1.1333
Suppose George's marginal cost is $3 per shirt.
Before the price change, George's initial price markup over marginal cost was approximately
A. 0.5625
B. 0.375
C. 0.625
D. 0.6875
George's desired markup is?
A. 1.3235
B. 0.7941
C. 0.9706
D. 0.8824
Since George's initial markup, or actual margin, was (LESS OR GREATER) than his desired margin, raising the price was (PROFITABLE OR NOT PROFITABLE).
Answer:
a. The best approximates the price elasticity of demand is -1.1333. Therefore, the correct option is D. -1.1333.
b. George's Initial price markup over marginal cost = 0.625. Therefore, the correct option is C. 0.625.
c. George's desired markup = 0.8824. Therefore, the correct option is D. 0.8824.
d. Since George's initial markup, or actual margin, was LESS than his desired margin, raising the price was PROFITABLE.
Explanation:
a. Which of the following best approximates the price elasticity of demand?
Price elasticity of demand = Percentage change in quantity demanded / Percentage change in price ................ (1)
Where, based on the midpoint formula, we have:
Percentage change in quantity demanded = {(New quantity demanded – Old quantity demanded) / [(New quantity demanded + Old quantity demanded) / 2]} * 100 = {(7000 - 8000) / [(7000 + 8000) / 2]} * 100 = -13.3333333333333%
Percentage change in price = {(New price - Old price) / [(New price + Old price) / 2]} * 100 = {(9 - 8) / [(9 + 8) / 2]} * 100 = 11.7647058823529%
Substituting the values into equation (1), we have:
Price elasticity of demand = -13.3333333333333% / 11.7647058823529% = -1.13333333333333
Approximated to 4 decimal places, we have:
Price elasticity of demand = -1.1333
This implies that the best approximates the price elasticity of demand is -1.1333.
Therefore, the correct option is D. -1.1333.
b. Suppose George's marginal cost is $3 per shirt. Before the price change, George's initial price markup over marginal cost was approximately.
George's Initial price markup over marginal cost = (Initial selling price - marginal cost) / Initial selling price = ($8 - $3) / $8 = 0.625
Therefore, the correct option is C. 0.625.
c. George's desired markup is?
George's desired markup = 1 / Absolute value of price elasticity of demand BEFORE approximation to 4 decimal places = 1 / 1.13333333333333 = 0.88235294117647
Approximated to 4 decimal places, we have:
George's desired markup = 0.8824
Therefore, the correct option is D. 0.8824
d. Since George's initial markup, or actual margin, was (LESS OR GREATER) than his desired margin, raising the price was (PROFITABLE OR NOT PROFITABLE).
George's Initial price markup over marginal cost = 0.625
George's desired markup = 0.8824
Therefore, we have:
Since George's initial markup, or actual margin, was LESS than his desired margin, raising the price was PROFITABLE.
explain business with two Examples
Explanation:
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. ... The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.
Example Coca-Cola, Amazon etc.
Answer:
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. ... There are various forms of a business, such as a limited liability company (LLC), a sole proprietorship, a corporation, and a partnership
Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options [LO19-5, 19-6, 19-7, 19-8] On December 31, 2020, Berclair Inc. had 380 million shares of common stock and 4 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 96 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $600 million. Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.)
Answer:
Berclair Inc.
Basic earnings per share = $1.87
Diluted earnings per share = $1.70
Explanation:
a) Data and Calculations:
Common Stock Cumulative Preferred Stock
Dec. 31, 2012 Outstanding 380,000,000 4,000,000 shares
Dividend rate 9%
Stock par value $100
Total value of stock $400 million
Annual preferred dividend $36 million ($400 m * 9%)
March 1, 2021 Treasury stock (96,000,000)
July 1, 2021 Stock dividend 14,200,000 (284,000,000 * 5%)
October 1, 2021 Treasury stock 4,000,000
Outstanding shares 302,200,000 4,000,000 shares
Stock options 30,000,000
Total shares and options 332,200,000
Net income for the year = $600,000,000
Preferred stock dividend 36,000,000
Earnings for available for
common stockholders $564,000,000
Basic earnings per share = $1.87 ($564,000,000/302,200,000)
Diluted earnings per share = $1.70 ($564,000,000/332,200,000)
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 grams $ 7.00 per gram Direct labor 0.6 hours $ 14.00 per hour Variable overhead 0.6 hours $ 6.00 per hour The company produced 4,600 units in January using 10,120 grams of direct material and 2,100 direct labor-hours. During the month, the company purchased 10,690 grams of the direct material at $7.20 per gram. The actual direct labor rate was $14.55 per hour and the actual variable overhead rate was $5.90 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:
Find the price a purchaser should be willing to pay for the given bond. Assume that the coupon interest is paid twice a year. $30,000 bond with coupon rate 4.4% that matures in 7 years; current interest rate is 6.8%.
Answer:
Bond Price= $26,042.12
Explanation:
Giving the following information:
Coupon= (0.044/2)*30,000= $660
YTM= 0.068/2= 0.034
Time to maturity= 7*2= 14 semesters
Face value= $30,000
To calculate the price of the bond, we need to use the following formula:
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 660*{[1 - (1.034^-14)] / 0.034} + [30,000 /(1.034^14)]
Bond Price= 7,256.14 + 18,785.98
Bond Price= $26,042.12
Common property resources like fish stocks in open waters tend to be overutilized because :________.
A. the marginal social cost is always equal to the private marginal cost.
B. the marginal social cost is less than the private marginal cost.
C. the marginal social cost is greater than the private marginal cost.
D. none of the above.
Answer:
C. the marginal social cost is greater than the private marginal cost.
Explanation:
In the case when there is common property resources such as the fish stock that lies in the open waters should be overutilized as the marginal social cost should be more than the private marginal cost because if there is high utlization so it will make the problem in the environment also the cost should be borne by the present and upcoming generations
Therefore the option c is correct
Electronic communication:_____.
a. prevents gossip, insults, threats, harassment, and the release of confidential information.
b. enables participants to pick up on subtle, nonverbal, or inflectional clues.
c. always leads to more satisfying negotiations.
d. requires lessening participation in communication to fewer people.
e. can reduce time and expenses devoted to traveling.
Electronic communication can reduce the time and expenses devoted to traveling. option (E) is correct.
What is communication?The transfer of information is the standard definition of communication. The phrase may also be used to describe the message sent through such transmissions or the area of research that focuses on them. There are several differences of opinion regarding its exact definition.
Any form of communication that is broadcast, transmitted, stored, or viewed using electronic media, such as computers, phones, email, and video, is referred to as electronic communication. But each has a particular purpose and is more appropriate in certain circumstances. A few types of electronic communication include email, instant messaging, websites, blogs, text messages, voicemail, and video messaging.
Therefore, option (E) is correct.
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Customers exhibit a Poisson arrival distribution and the barber must provide an exponential service distribution. Market data indicates that customers arrive at a rate of 2 per hour. It will take an average of 20 minutes to give a haircut, and that business would remain unchanged with customers arriving at a rate of two per hour. Find the following information to help Benny decide if a second chair should be added:
a. The average number of customers waiting.
b. The average time a customer waits.
c. The average time a customer is in the shop.
Answer: the answer is b
Explanation:
Stephani Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of May. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $53,000 and the total of the credits to the account was $69,000. Which of the following statements is true?
a. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $75,000.
b. Actual manufacturing overhead incurred during the month was $56,000.
c. Manufacturing overhead applied to Work in Process for the month was $75,000.
d. Manufacturing overhead for the month was underapplied by $19,000.
Answer:
the manufacturing overhead for the month should be overapplied by $16,000
Explanation:
Given that
The debit to the manufacturing overhead is $53,000
And, the credit balance is $69,000
So, it should be overapplied by the
= $53,000 - $69,000
= $16,000
Therefore the manufacturing overhead for the month should be overapplied by $16,000
This is the answer but the same is not provided in the given options
