Answer:
Accumulated depreciation = ($480,000 - $50,000)/5 *6/12 + $301,000
Accumulated depreciation = $43,000 + $301,000
Accumulated depreciation = $344,000
Date Account titles & Explanations Debit Credit
Cash $146,000
Accumulated depreciation $344,000
Gain on disposal $10,000
Equipment $480,000
So, the gain on disposal is $10,000
A state's lottery winner is promised $200,000 a year for twenty years (starting at the end of the first year). How much must the state invest now to guarantee the prize if the state can earn annually 7 percent on its funds? How much must the state invest if the annual payments were made at the beginning of the year?
Answer and Explanation:
The computation is shown below:
The amount that should be invested in the case when it earns 7% on its funds is
Investment = pv(7%,20,200000,0,0)
= $2,118,802.85
ANd, the amount that should be invested at the starting of the year is
= pv(7%,20,200000,0,1)
= $2,267,119.05
The same should be considered
Kohl Co. provides warranties for many of its products. The January 1, 2013, balance of the Estimated Warranty Liability account was $54,088. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 0.60% of sales. During 2013, the actual cost of servicing products under warranty was $39,922, and sales were $2,149,100. Required: a. What amount of Warranty Expense will appear on Kohl Co.'s income statement for the year ended December 31, 2013
Answer: $12,894.60
Explanation:
Warranty expense for 2013 will be calculated as:
= Actual warranty expense * Estimated warranty expense %
Actual warranty expense = Sales because these are the products under warranty.
Warranty expense is therefore:
= 2,149,100 * 0.60%
= $12,894.60
Malik is a recent college graduate. He just started his first job as an investment
representative for Edward Jones. He has carefully budgeted his finances, and plans to
set aside $500/month for his retirement,
How would you recommend Malik invest his money?
Answer:
The answer is below
Explanation:
Given that Malik wants to invest his money for retirement purposes, here are some of the income-producing retirement investments he can invest his money:
1. Immediate Annuities
2. Bonds
3. Retirement Income Funds
4. Rental Real Estate
5. Real Estate Investment Trusts (REITs)
6. Variable Annuity With a Lifetime Income Rider
7. Closed-End Funds
8. Dividend Income Fund
9. Total Return Portfolio
United Clinical Laboratories is a medical laboratory located in Minnesota. United Clinical Laboratories uses the weighted-average method in its process costing system. For the month of August, the following data are available for one department: Percent Completed Units Materials Conversion Work in process, August 1 45,000 90 % 55 % Work in process, August 31 26,000 75 % 49 % The department started 390,000 units into production during the month and transferred 409,000 completed units to the next department. Required: Compute the equivalent units of production for August.
Answer:
United Clinical Laboratories
Materials Conversion
Equivalent units of production 428,500 421,740
Explanation:
a) Data and Calculations:
Percent Completed Units Materials Conversion
Work in process, August 1 45,000 90 % 55 %
Work in process, August 31 26,000 75 % 49 %
Equivalent Units of Production for the month of August:
Units Materials Conversion
Work in process, August 1 45,000
Units started in August 390,000
Total units available 435,000
Units transferred out 409,000 409,000 (100%) 409,000 (100%)
Work in process, August 31 26,000 19,500 (75%) 12,740 (49%)
Equivalent units of production 428,500 421,740
The equivalent units of production for August for material and conversion is 428,500 and 421,740.
Calculation of equivalent unit of production:Percent Completed Units Materials Conversion
Work in process, August 1 45,000 90 % 55 %
Work in process, August 31 26,000 75 % 49 %
Now
Equivalent Units of Production for the month of August:
Units Materials Conversion
Work in process, August 1 45,000
Units started in August 390,000
Total units available 435,000
Units transferred out 409,000 409,000 (100%) 409,000 (100%)
Work in process, August 31 26,000 19,500 (75%) 12,740 (49%)
Equivalent units of production 428,500 421,740
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Warehouse Sports, a large box store retailer of athletic shoes, orders 200,000 shoes per year from its manufacturer. If w-
and spends $10,000 in total annual ordering costs, what is the cost of ordering and delivery per order?
O $2,000
$50
W
O $500
O There is not enough information to answer this question.
Many elementary schools participate in programs where students go out into the community on behalf of a company to sell products from a catalog of goods, which the company ships directly to the consumer. Usually the school gets a cut of the profits and the kids are rewarded with prizes based on how much they sell. What type of channel member do the school children represent in this example?
Answer: Retailers
Explanation:
One type of distribution channel is one where a company ships its goods directly to a retailer which would then sell to a customer. For instance, when a car company sells directly to a car dealership and then the car dealership sells to consumers.
This is what is happening here. The company is selling directly to the school which then sells the goods through the students, to consumers. The students and the school can therefore be said to be retailers.
Rank the following three stocks by their total risk level, highest to lowest. Night Ryder has an average return of 9 percent and standard deviation of 40 percent. The average return and standard deviation of WholeMart are 10 percent and 22 percent; and of Fruit Fly are 15 percent and 45 percent.
a. Fruit Fly, Night Ryder, WholeMart
b. Night Ryder, WholeMart, Fruit Fly
c. Night Ryder, Fruit Fly, WholeMart
d. WholeMart, Fruit Fly, Night Ryder
Fruit Fly, Night Ryder, WholeMart is the three stocks by their total risk level, highest to lowest. Night Ryder has an average return of 9 percent. Hence, option A is correct.
What is standard deviation?The term "standard deviation" (or "") refers to a measurement of the data's dispersion from the mean. A low standard deviation implies that the data are grouped around the mean, whereas a large standard deviation shows that the data are more dispersed.
Example: How many people had scores on a recent test that were lower than yours, which was 0.5 standard deviations above the mean? 19.1% falls between 0 and 0.5. 50% is less than zero.
A low standard deviation indicates that the data are tightly grouped around the mean, while a high standard deviation indicates that the data are widely dispersed (less dependable) (more reliable).
Thus, option A is correct.
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Using the data below, determine the ending inventory amount assuming the weighted average method under a periodic inventory system.
Beginning inventory 10 units
Purchases 20 units
Total cost of units available for sale $3,000
Ending inventory 12 units
Answer:
$1200
Explanation:
The computation of the ending inventory is shown below:
Weighted Average Cost per unit is
= Cost of units available for sales ÷ units available for sales
= $3000 ÷ 30
= $100
Now
Ending Inventory is
= 12 units × Weighted Average Cost per unit $100
= $1200
how success and failure in practice of management affect organization?
Explanation:
One of the most remarkable aspects of organizational change efforts is their low success rate. There is substantial evidence that some 70% of all change initiatives fail. This article explores the argument that a potentially significant reason for this is a lack of alignment between the value system of the change intervention and of those members of an organization undergoing the change. In order to test this assertion, the article begins by reviewing the change literature with regard to the impact of values on success and failure. It then examines Graves' Emergent Cyclical Levels of Existence Theory and uses this as the basis of a method for identifying and aligning value systems. The article then presents the results from case studies of two change initiatives in different organizations. These support both the method and the assertion that value system alignment may be an important factor in the success of organizational change initiatives. The article concludes with recommendations for further research.
Karen usually does not spend much time selecting gifts. However, when choosing a fountain pen for her husband's birthday this year, she visited several stores and spent a lot of time asking the sales staff about different features of the pen before making her purchase. This scenario illustrates _______. a. shopping involvement.b. enduring involvement.c. product involvement.d. situational involvement.
Answer:
Option d: situational involvement
Explanation:
Types of Involvement
Product Involvement; message involvement, situational involvement
Product involvement
In this stage of involvement, consumer's level of interest in product is largely based on perceived risk and application to daily life. This is simply known as a product category that is of high personal relevance.
Message involvement
This is simply the effects the media has on consumers such as high involvement is equal to high cognitive effort required (newspaper) while low-involvement equal to low cognitive.
Situational Involvement
This is simply defined as the circumstances surrounding the purchase area that may temporarily change a low-involvement decision into a high-involvement one. High-involvement is therefore when the consumer perceives risk in a specific situation. This usually takes place at location where purchasing.
Use the starting balance sheet and the list of changes to create an updated balance sheet and to answer the question.
Valley Technology Balance Sheet As of December 31, 2020 (amounts in thousands)
Cash 2,200 Liabilities 3,600
Other Assets 2,800 Equity 1,400
Total Assets 5,000 Total Liabilities 5,000
Between January 1 and March 31, 2021:
1. Cash decreases by $200,000
2. Liabilities decrease by $100,000
3. Equity increases by $400,000
What is the value for Other Assets on March 31, 2021?
Answer: $3,300,000
Explanation:
Accounting formula:
Assets = Equity + Liabilities
Total equity and liabilities on March 31 is:
= Beginning balance - decrease in liabilities + Increase in Equity
= 5,000,000 - 100,000 + 400,000
= $5,300,000
Assets therefore has to be $5,300,000 on the same date.
Assets = New cash balance + Other assets
5,300,000 = (2,200,000 - 200,000) + Other assets
Other assets = 5,300,000 - 2,000,000
= $3,300,000
Why was Circuit City so successful as to be fea- tured in Good to Great? What was its strategic position during its successful period? How did it contribute to competitive advantage?
Answer:
Circuit city was the second largest multinational U.S elctronic retailer. Founded in 1949 and it has 567 circuit superstores around the world. McCollough was the CEO who has an experience of 13 years. Because of his experienece in marketing and store management, he could serve the company as a genral manager.
McCollough implimented several strategies in order to gain the brand image for the company.
They have used five S's stratergies which includes selection, saving, service, satisfaction and speed
Explanation:
Several other reasons for calling circuit city successful as Good to Great are as follows,
The company has a point-of-point scale and also inventory-tracking technology to have control on secured cash transactions and consistent systems
The company is able to provide a quit response for timely chnaging trends and adapt to the dynamic environment in the market
They have avoided unneccessary business practices and neglected several unnessary competencies in the market
Suppose you buy some stock in the Alpha Corporation at a price of $45.95 per share. 410 days later you sell the stock for $48.27. During this period you received a per share dividend of $1.20. What is your annualized return on this investment
Answer: 6.79%
Explanation:
The holding period return is:
= (Current price - Cost price + Dividend) / Cost price
= (48.27 - 45.95 + 1.20) / 45.95
= 7.66%
The annualized return is:
= ( ( 1 + holding period return) ^ number of days in a year/ number of days stock was held - 1)
= ( ( 1 + 7.66%) ³⁶⁵ / ⁴¹⁰ - 1)
= 6.79%
Wildhorse Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022.
1. Purchased a 1-year insurance policy on June 1 for $2,220 cash.
2. Paid $7,020 on August 31 for 5 months’ rent in advance.
3. On September 4, received $3,960 cash in advance from a corporation to sponsor a game each month for a total of 9 months for the most improved students at a local school.
4. Signed a contract for cleaning services starting December 1 for $1,080 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.)
5. On December 5, received $1,620 in advance from a gaming club. Determined that on December 31, $515 of these games had not yet been played.
Question Completion:
Prepare the necessary journal entries.
Answer:
Wildhorse Games Inc.
1. June 1: Debit Prepaid Insurance $2,220
Credit Cash $2,220
To record the payment for 1-year insurance policy.
2. August 31: Debit Prepaid Rent $7,020
Credit Cash $7,020
To record the payment for 5 months’ rent in advance.
3. September 4: Debit Cash $3,960
Credit Unearned Game Revenue $3,960
To record cash received in advance to sponsor a game each month for a total of 9 months.
4. November 30: Debit Prepaid Cleaning $2,16
Credit Cash $2,160
To record the payment for cleaning services for two months.
5. December 5: Debit Cash $1,620
Credit Unearned Games Revenue $1,620
Adjustments on December 31:
1. Debit Insurance Expense $1,295
Credit Prepaid Insurance $1,295
To record insurance expense for the period ($2,220 * 7/12).
2. Debit Rent Expense $5,616
Credit Prepaid Rent $5,616
To record rent expense for the period ($7,020 * 4/5).
3. Debit Unearned Games Revenue $1,760
Credit Earned Games Revenue $1,760
To record earned revenue ($3,960 * 4/9).
4. Debit Cleaning Expense $1,080
Credit Prepaid Cleaning $1,080
To record cleaning expense for the period.
5. Debit Unearned Games Revenue $1,105
Credit Earned Games Revenue $1,105
To record earned revenue.
Explanation:
a) Data and Analysis:
1. June 1: Prepaid Insurance $2,220 Cash $2,220 1-year insurance policy
2. August 31: Prepaid Rent $7,020 Cash $7,020 for 5 months’ rent in advance.
3. September 4: Cash $3,960 Unearned Game Revenue $3,960 to sponsor a game each month for a total of 9 months
4. November 30: Prepaid Cleaning $2,160 Cash $2,160
$1,080 per month. Paid for the first 2 months on November 30.
5. December 5: Cash $1,620 Unearned Games Revenue $1,620
Adjustments on December 31:
1. Insurance Expense $1,295 Prepaid Insurance $1,295 ($2,220 * 7/12)
2. Rent Expense $5,616 Prepaid Rent $5,616 ($7,020 * 4/5)
3. Unearned Games Revenue $1,760 Earned Games Revenue $1,760 ($3,960 * 4/9)
4. Cleaning Expense $1,080 Prepaid Cleaning $1,080
5. Unearned Games Revenue $1,105 Earned Games Revenue $1,105
By appropriately preparing a forecast budget, a company can avoid __________. a net loss inventory shortages insolvency regulation
Answer:
insolvency
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.
The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.
A specialized budget can be defined as a financial plan that is typically focused on specific assets or activity of a master (comprehensive) budget.
In conclusion, by appropriately preparing a forecast budget, a company can avoid insolvency.
At the beginning of the year, your company borrows $33,600 by signing a six-year promissory note that states an annual interest rate of 9% plus principal repayments of $5,600 each year. Interest is paid at the end of the second and fourth quarters, whereas principal payments are due at the end of each year. How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter
Answer:
Current liabilities Increase by $6356
Non-current liabilities Increase by $27,244
Explanation:
Calculation to determine How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter
First step is calculate the Interest Payable using this formula
Interest Payable = Principal × Interest rate × Time
Let plug in the formula
Interest Payable= $33600 × 0.09 × 3/12
Interest Payable= $756
Now let determine the current and non-current liability amounts
Current liabilities = Interest payable + Current portion of long-term debt
Current liabilities= $756 + $5600
Current liabilities= $6356
Non-current liability = Amount of promissory note - Current portion of long-term debt
Non-current liability= $33600 - $6356
Non-current liability= $27,244
Therefore How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter is:
Current liabilities Increase by $6356
Non-current liabilities Increase by $27,244
Question 3
Rank the following assets of a commercial bank in order of decreasing liquidity.
(a) Market loans
(b) Reserves with the Bank of Ghana
(c) Cash
(d) Personal loans
(e) Sale and repurchase agreements (repos)
(f) Mortgages
(g) Government bonds (of from one to five years to maturity)
Answer:
Reserves with the Bank of Ghana
Explanation:
I could be wrong let me know if its correct or incorrect
Analysis of a foreign subsidiary's financial statements denominated in Euro, its local currency, shows a growth rate in revenue of 16%. Suppose that during the year, the value of the Euro increased in terms U.S. dollars. The subsidiary's revenue growth rate expressed in U.S. dollars will be:
Answer:
The appropriate answer is "Greater than 16%".
Explanation:
Throughout this situation, the country's currency of companies has shown a 16 percent raise, which means that the sales of the subsidiaries would increase more than 16 percent whenever represented among Us dollars.As several currencies are increasing inside this valuation of the national currency, the transformation rate is greater than 16% as that the incidence increases.Swift Motor Lines has a delivery truck that cost $11,000, and has $1,000 of accumulated depreciation. What is the fair market value of the truck
Answer: Information is not sufficient to answer.
Explanation:
The fair market value of a fixed asset is the current value in the market of the fixed asset. Given that we do not know the current market value as it is not given in the question, we are unable to answer this question.
If the question had asked to calculate the net book value then we would have simply subtracted the accumulated depreciation from the cost price but this is a fair market value question so its different.
what is the meaning of want
Answer:
Want is to desire something or to yearn. (EX. I want an ice cream.) Want is showing that you would like something basically
Explanation:
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case.
(a) Credit balance of $300 in Allowance for Doubtful Accounts just prior to adjustment. Analysis of Accounts Receivable indicates uncollectible receivables of $8,500.
(b) Credit balance of $500 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 2% of credit sales, which totaled $1,000,000 for the year.
Answer:
a. Credit balance in the Allowance for Doubtful Accounts and already balance in Allowance account = $300
Estimated Doubtful accounts and balance maintained with Allowance for Doubtful Accounts= $8,500
Amount added to the Allowance for Doubtful Accounts = $8,500 - $300
Amount added to the Allowance for Doubtful Accounts = $8,200
Ending balance maintained with Allowance for Doubtful Accounts = $8,500
b. Credit balance in the Allowance for Doubtful Accounts and already balance in Allowance account = $500
Estimated Doubtful accounts and balance maintained with Allowance for Doubtful Accounts = $1,000,000 * 2% = $20,000
Ending balance maintained with Allowance for Doubtful Accounts = $20,000 + $500 = $20,500
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price per unit $ 24 Variable expense per unit $ 18 Fixed expense per month $ 4,800 Unit sales per month 950 Required: 1. What is the company’s margin of safety? (Do not round intermediate calculations.) 2. What is the company’s margin of safety as a percentage of its sales?
Answer:
1.150 units
2. 15.79%
Explanation:
Margin of safety is the difference between the current level of profitability and the break-even level. In other words, it is excess of the current level of sales and the break-even sales computed using the formula below:
the margin of safety in units=current level of sales-breakeven sales
break-even sales=fixed expense/contribution margin
fixed expense=$4,800
contribution margin per unit=selling price-variable cost
contribution margin per unit=$24-$18
contribution margin per unit=$6
break-even sales=$4,800/$6
break-even sales units=800 units
the margin of safety in units=950-800
the margin of safety in units=150 units
the margin of safety as a percentage of its sales=150/950
the margin of safety as a percentage of its sales=15.79%
Trident Manufacturing Company's treasurer identified the following cash flows during this year as significant. It had repaid existing debt to the tune of $425,110, while raising additional debt capital of $750,000. It also repurchased stock in the open markets for a total of $63,250. It paid $233,144 in dividends to its shareholders. What is the net cash provided (used) by financing activities?
Answer:
$28,496
Explanation:
Calculation to determine the net cash provided (used) by financing activities
Cash inflows from financing activities $750,000
Less Cash outflows from financing activities ($721,504)
($425,110 + $63,250 + $233,144)
Net cash flows from financing activities $28,496
($750,000 – $721,504)
Therefore the net cash provided (used) by financing activities is $28,496
write a few sentences describing a situation where you (or someone you know) has used their problem solving skill or agility skill to increase their human capital in order to get a better job or earn more income.
Answer:
Increase human capital
Explanation:
In order to increase my own worth, I provide a perspective that others are apprehensive to commit to. This perspective is that of complete honesty, 100% of the time. I own my mistakes, I celebrate my successes and I am humble to the lessons of others and my own.
The capacity to identify, evaluate, comprehend, and effectively solve an issue. It is a set of abilities that includes listening, creativity, innovation, and analytical prowess, among other things. It is a very valuable and difficult skill in the business world.
When employers discuss problem-solving abilities, they frequently refer to the capacity to manage challenging or unforeseen circumstances at work as well as intricate commercial difficulties. Organizations depend on individuals who can objectively evaluate both types of events and calmly pinpoint solutions. These are qualities that give you the ability to achieve it.
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Suppose you borrow $9,875 and then repay the loan by making 12 monthly payments of $863.58 each. What is the effective annual rate (EAR) you are paying
Answer:
9.38%
Explanation:
PV = $9,875
PMT = $863.58
NPER = 12
Using the MS Rate Function to derive the Periodic rate
Periodic rate = Rate(NPER, -PMT, PV)
Periodic rate = Rate(12, -863.58, 9,875)
Periodic rate = 0.0075
Periodic rate = 0.75%
Nominal rate = Periodic rate * NPER
Nominal rate = 0.75% * 12
Nominal rate = 9%
Using the MS Effect Function to derive the effective annual rate (EAR)
Nominal rate = 9%
NPER = 12
Effective annual rate (EAR) = Effect(Nominal rate, NPER)
Effective annual rate (EAR) = Effect(9%, 12)
Effective annual rate (EAR) = 0.0938
Effective annual rate (EAR) = 9.38%
So, the the effective annual rate (EAR) you are paying is 9.38%.
Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a) At a minimum, how many units must Portal sell in order not to incur a loss?b) Prepare a contribution margin income statement showing predicted net income (loss) if Portal sells 100,000 units for the year ended December 31.
At a bare minimum, the units must portal sold in order not to incur a loss of 130,000 units.
Contribution margin per unit = Selling price per unit - Variable costs per unit
= $15 - $11
= $4
Break-even sales = Fixed costs / Contribution margin per unit
= $520,000 / $4
= $130,000
Sales (130,000 units * $15) $1,950,000
Variable costs (130,000 units * $11) ($1,430,000)
Contribution margin $520,000
Fixed costs ($520,000)
Net income $0
What is the Contribution margin per unit?The asking price of 1 unit of the product less the variable producing expenses is that the contribution margin per unit. the quantity that every sale contributes toward covering mounted prices is understood because of the unit contribution margin. it'll show the profit per unit oversubscribed when the mounted prices are paid.
Revenue less variable prices equal contribution margin. The formula for conniving the contribution margin magnitude relation is revenue - variable prices / by revenue.
The nearer the contribution margin is to 100 percent, the better; 100 percent is that the ideal contribution margin. The larger the quantity, the lot effectively a business pays its operational expenses out of money existing.
Selling price per unit less variable price per unit equals contribution margin, usually called dollar contribution per unit. the quantity of sales revenue stated as "Contribution" is the fraction that's not accustomed pay variable prices and thus helps to hide mounted prices.
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a)What are the expected returns and standard deviations of a portfolio consisting of:1.100 percent in stock A
Answer:
12%
1.00
Explanation:
Note that the expected return on stock A which is 12% is missing from the question as well as the standard deviation of A which is 1.00
The expected return from stock A with 100% of funds(total amount of investment) invested in stock A is the percentage invested in A multiplied by the expected return of stock A shown thus:
expected return=100%*12%
portfolio expected return=12%
portfolio standard deviation(if 100% invested in A)=1.00*100%
A certificate of deposit usually has: Multiple Choice a variable rate of return. no minimum deposit amount. no set time period. a penalty for early withdrawal of funds. earnings based on fluctuating market interest rates.
Answer:
A certificate of deposit usually has:
a penalty for early withdrawal of funds.
Explanation:
When a customer opens an account with a bank or credit union with an initial deposit, which remains the same or continues to increase at a fixed amount until the agreed maturity period, a certificate of deposit is issued to the customer. The customer does not withdraw any amount until the fixed period has elapsed. Thereafter, the customer receives a fixed interest plus the deposit.
You decide to buy 1,800 shares of stock at a price of $68 and an initial margin of 75 percent. What is the maximum percentage decline in the stock price before you will receive a margin call if the maintenance margin is 30 percent
Answer:
Decline percentage = 64.29%
Explanation:
First find the margin call price = Initial price x (1 - initial margin) / (1-maintenance margin)
Margin call price = 68 x ( 1- 75%) / (1 - 30%)
Margin call price = $24.29
The margin call that the investor will have if the price fall to $24.29.
Now find the percentage decline:
Percentage decline = (68 - 24.29) / 68
Percentage decline = 0.6429
Thus decline percentage = 64.29%
The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $91,050. The conversion cost for the period in the Filling Department is $497,860. The total equivalent units for direct materials and conversion are 60,700 ounces and 68,200 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent. Direct materials cost per equivalent unit: $fill in the blank 1 per ounce Conversion costs per equivalent unit: $fill in the blank 2 per ounce
Answer:
Cost of Direct material per unit = $1.50 per unitCost of Conversion = $7.30 per unitExplanation:
Cost of Direct material per unit is:
= Total cost of direct material / Total equivalent units for direct materials
= 91,050 / 60,700
= $1.50 per unit
Cost of conversion
= Total cost of Conversion / Total equivalent units for Conversion
= 497,860 / 68,200
= $7.30 per unit
