XZYY, Inc. currently has an issue of bonds outstanding that will mature in 16 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 13.0% with annual coupon payments. The bond is currently selling for $1,176. The bonds may be called in 3 years for 113.0% of the par value. What is your expected quoted annual rate of return if you buy the bonds and hold them until maturity

Answers

Answer 1

Answer: 10.66%

Explanation:

The expected quoted annual rate of return when the bonds are bought and being held until maturity will be calculated thus:

Coupon payment = 1000 × 13% = 130

The Yield to Maturity formula will be:

= Rate(maturity period, coupon payment, -price, fave value)

= Rate(16, 130, -1176, 1000)

Yield to Maturity = 10.66%

Therefore, the expected quoted annual rate of return is 10.66%.


Related Questions

Now- a quick question. Assume at the beginning of Year2, Becker Company has a credit (positive) balance in the AOCI account of $10800. Becker Company reports $653000 of net income for Year2. Becker has an unrealized gain of $12000 during Year2. The gain qualifies as OCI (Other comprehensive income). 1. What will Becker report as Accumulated Other Comprehensive Income on the Year2 balance sheet

Answers

Answer:

Becker Company

The amount that Becker will report as Accumulated Other Comprehensive Income on the Year 2 balance sheet is:

= $22,800.

Explanation:

a) Data and Calculations:

Year 2 Beginning balance:

Accumulated other comprehensive income (AOCI) = $10,800 credit

Year 2 reported net income = $653,000

Unrealized gain during Year 2 = $12,000

The Accumulated Other Comprehensive Income on the Year 2 balance sheet is:

Beginning balance $10,800

Unrealized gain        12,000

AOCI for Year 2 = $22,800

b) Becker's Accumulated Other Comprehensive Income includes unrealized gains and losses arising from some investments, pension plans, and hedging transactions.  These are usually reported in the equity section of the balance sheet and then netted off from the retained earnings.

g Find the monthly payment and estimate the remaining balance (to the nearest dollar). Assume interest is on the unpaid balance. 5-year car loan for $9700 at 5%; remaining balance after 4 years.

Answers

Answer:

Monthly payment $102.88

Outstanding balance after year 4 $1,201.76

Explanation:

First and foremost, the car loan amount of $9,700 is the present value of all monthly payments for 5 years as shown below:

PV=monthly payment*(1-(1+r)^-n/r

PV=car loan amount=$9,700

monthly payment=unknown

r=monthly interest rate=5%/12=0.004166667

n=number of monthly payments in 5 years=5*12=60

$9700=monthly payment*(1-(1+0.004166667)^-120/0.004166667

$9700=monthly payment*(1-(1.004166667)^-120/0.004166667

$9700=monthly payment*(1-0.607161016 )/0.004166667

$9700=monthly payment*0.392838984 /0.004166667

$9700=monthly payment*94.28134862

monthly payment=$9700/94.28134862

monthly payment=$102.88  

The outstanding balance after year 4 is the present value of monthly payments for the remaining 1 year(12 months)

PV=$102.88*(1-(1+0.004166667)^-12/0.004166667

PV=$102.88*(1-(1.004166667)^-12/0.004166667

PV=$102.88*(1-0.951328238 )/0.004166667

PV=$102.88*0.048671762 /0.004166667

PV=$1,201.76

When a company issues 32,000 shares of $2 par value common stock for $20 per share, the journal entry for this issuance would include:_____.A. A debit to Additional Paid-in Capital for $76,000. B. A debit to Cash for $76,000. C. A credit to Common Stock for $760,000. D. A credit to Additional Paid-in Capital for $684,000.

Answers

Please the options provided are not correct for the question given.

Answer: When a company issued 32,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include a debit to cash for $640,000 , a credit to common stock and Additional paid in capital for   $64,000 and $576,000 respectively.

Explanation:

Company  issued = 32,000 shares

For par value = $2

Common stock for = $20 per share

The Journal Entry would be,

Accounts title and explanation                Debit                     Credit

Cash  ($32,000 shares x $20)             $640,000  

Common Stock  (32,000 shares x $2)                                   $64,000

Additional paid-In capital in excess par—common stock   $576,000 ($640,000 - $64,000)  

If the price elasticity of supply is 0.5 and the quantity supplied decreases by 6%, then the price must have decreased by 3%. a. True b. False

Answers

Answer: False

Explanation:

The price elasticity of supply measures the change in quantity supplied when the price changes.

The basic trend is that when price increases, quantity supplied increases as well. The reverse is true.

Price elasticity of supply = %Change in quantity supplied / % change in price

0.5 = -6% / Change in price

0.5 * Change in price = -6%

Change in price = -6% / 0.5

= -12%

The statement above is therefore false because price should have reduced by 12% for quantity supplied to reduce by 6%

If the return on stock A in year 1 was 6 %, in year 2 was 3 %, in year 3 was 18 % and in year 4 was 3 %, what was the standard deviation of returns for stock A over this four year period? (Round your answer to 1 decimal place and record without a percent sign. If your final answer is negative, place a minus sign before the number with no space between the sign and the number).

Answers

Answer:

12.4

Explanation:

We need to,first of all, determine the arithmetic average return of all the returns, which is the sum of the returns divided by the number of returns

average return=(6%+3%+18%+3%)/4

average return=7.50%

Years return (return-average return) (return-average return)^2

1          6.00%        -1.50%                            0.022500%

2          3.00%       -4.50%                             0.202500%

3         18.00%         10.50%                               1.102500%

4         3.00%       -4.50%                               0.202500%

        average return 7.50%           variance 1.530000%

                   standard deviation=variance^(1/2) 12.4%

Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 40 per unit Direct labor $ 60 per unit Overhead costs Variable $ 30 per unit Fixed $ 7,000,000 (per year) Selling and administrative costs for the year Variable $ 770,000 Fixed $ 4,250,000 Production and sales for the year Units produced 100,000 units Units sold 70,000 units Sales price per unit $ 350 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing.

Answers

Answer:

Sims Company

Income Statements                   Variable Costing       Absorption Costing

Sales revenue                             $24,500,000               $24,500,000

Cost of goods sold:

Variable cost of manufacturing      9,100,000                     9,100,000

Variable cost of selling and admin.  770,000                                    0

Fixed manufacturing cost                             0                    4,900,000

Total cost of goods sold              $9,870,000                $14,000,000

Contribution margin                   $14,630,000                                   0

Gross profit                                                    0               $10,500,000

Fixed /Period costs:

Fixed manufacturing cost           $7,000,000                                  0

Selling and administrative expenses:

Variable                                                                              $ 770,000

Fixed                                              4,250,000                  4,250,000

Total period/fixed costs             $11,250,000               $5,027,000

Net operating income                $3,380,000                $5,473,000

Explanation:

a) Data and Calculations:

Manufacturing costs

Direct materials $ 40 per unit

Direct labor $ 60 per unit

Overhead costs

Variable $ 30 per unit

Total variable manufacturing cost per unit = $130

Fixed $ 7,000,000 (per year)

Selling and administrative costs for the year

Variable $ 770,000

Fixed $ 4,250,000

Production and sales for the year

Units produced 100,000 units

Units sold 70,000 units

Ending inventory = 30,000 units

Sales price per unit $ 350 per unit

Local marketing is an effective tool used by marketers to reach intended market segments. Groupon has capitalized on this concept by tailoring brands and marketing to the needs and wants of local customer segments—cities, neighborhoods, and even specific stores. According to its website, Groupon “offers a vast mobile and online marketplace where people discover and save on amazing things to do, see, eat, and buy. By enabling real time commerce across local businesses, travel destinations, consumer products, and live events, shoppers can find the best a city has to offer. Groupon is redefining how small businesses attract and retain customers by providing them with customizable and scalable marketing tools and services to profitably grow their businesses.” This concept lies at the heart of Groupon’s mission: “to connect local commerce, increasing consumer buying power while driving more business to local merchants through price and discovery.” To help consumers make those connections, Groupon offers a mobile app, online marketplace, and social media touchpoints where customers can readily access information on its daily deals. Questions: Q1. How does Groupon use target marketing? Provide examples. Q2. Discuss the ways in which small businesses can utilize local social media marketing in your community. Q3. Have you heard about Groupon? Explain their business Q4. Do you use Groupon? Q5. Is it effective in helping local businesses to meet the challenges of local marketing? Why or why not?

Answers

Answer:

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What happens to consumer surplus in the cell phone market if cell phones are normal goods and buyers of cell phones experience an increase in income? a. Consumer surplus decreases. b. Consumer surplus remains unchanged. c. Consumer surplus increases. d. Consumer surplus may increase, decrease, or remain unchanged.

Answers

Answer:

D

Explanation:

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

If consumers income increases, their demand for cell phone would increase. This would lead to an increase in price of the good.

Also, willingness to pay would ncrease as a result of income increase

If increase in willingess to pay exceeds increase in price, consumer surplus increases, if not it reduces. If the increase is the same, it remains the same

Faughn Corporation has provided the following data concerning manufacturing overhead for July:
Actual manufacturing overhead incurred $ 79,000
Manufacturing overhead applied to Work in Process $ 69,000
The company's Cost of Goods Sold was $243,000 prior to closing out its Manufacturing Overhead account. The company closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true?
A. Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
B. Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
C. Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
D. Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000

Answers

Answer: D. Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000

Explanation:

The Manufacturing overhead applied is less than the actual manufacturing overhead incurred by:

= 79,000 - 69,000

= $10,000

Manufacturing overhead is therefore underapplied as the amount applied is too low to cover the amount incurred.

The Cost of Goods sold after closing out is:

= Cost of goods sold before closing out + Underapplied manufacturing overhead

= 243,000 + 10,000

= $253,000

Halsted Corp. has identified three cost pools in its manufacturing process: equipment maintenance, setups, and quality control. Total cost assigned to the three pools is $214,500, $101,400, and $153,000, respectively. Cost driver estimates for the pools are 10,000 machine hours, 150 setups, and 450 quality inspections, respectively.

Required:
Calculate the activity rate for each of Halsted's cost pools.

Answers

Answer:

Maintenance $21.45 per Machine Hour

Setup $676 per Setup

Quality Control $340 per Inspection

Explanation:

Calculation to determine the activity rate for each of Halsted's cost pools.

Activity rate for MAINTENANCE COST

Using this formula

Activity rate= Total maintenance cost / Total machine hours

Let plug in the morning

Activity rate=$214,500/ 10,000

Activity rate= $21.45 per Machine Hour

Activity rate for SETUPS

Using this formula

Activity rate= Total Setups /Setups

Let plug in the formula

Activity rate= $101,400/150

Activity rate=$676 per Setup

Activity rate for QUALITY CONTROL

Using this formula

Activity rate= Total Quality control /Quality inspections

Let plug in the formula

Activity rate= $153,000/450

Activity rate= $340 per Inspection

Therefore the activity rate for each of Halsted's cost pools will be:

Maintenance $21.45 per Machine Hour

Setup $676 per Setup

Quality Control $340 per Inspection

Question
In 2 hours, China can produce 6 bottles of milk. In 5 hours, it can produce 15 batches of pumpkins. What is the country's
opportunity cost of producing 1 bottle of milk (in terms of batches of pumpkins)?
your answer below:

Answers

Answer:

China's opportunity cost of producing 1 bottle of milk is equal to one batch of pumpkins.

Explanation:

Given that in 2 hours, China can produce 6 bottles of milk, and in 5 hours, it can produce 15 batches of pumpkins, to determine what is the country's opportunity cost of producing 1 bottle of milk (in terms of batches of pumpkins), the following calculation must be performed:

Milk = 6/2 = 3 per hour

Batches of pumpkins = 15/5 = 3 per hour

3/3 = 1

Therefore, China's opportunity cost of producing 1 bottle of milk is equal to 1 batch of pumpkins.

Suppose that the MPC is 0.8 and that $18 trillion of real GDP is currently being demanded. The government wants to increase real GDP demanded to $19 trillion at the same price level. By how much would it have to increase government purchases to achieve this goal (use the simple spending multiplier)?

Answers

Answer: $200 billion

Explanation:

First find the government spending multiplier:

Multiplier = 1 / (1 - MPC)

= 1 / (1 - 0.8)

= 5

The government wants to increase the real GDP to $19 trillion from $18 trillion which means that they want to increase it by $1 trillion.

In order to increase it by $1 trillion, the amount the government needs to spend is:

Increase in real GDP = Multiplier * Government spending

1 trillion = 5 * Government spending

Government spending = 1 trillion / 5

= $200 billion

g A construction company builds roads with machinery​ (capital, K) and labor​ (L). If we plot the isoquants for the production function so that labor is on the horizontal​ axis, then a point on the isoquant with a small MRTS​ (in absolute​ value) is associated with high​ __________ use and low​ __________ use. A. ​labor; capital B. ​concrete; gravel C. ​capital; labor D. None of the above.

Answers

Answer:

A. ​labor; capital

Explanation:

In the production function theory, here we presume that the isoquants should be convex shaped and the MRTS should be isoquant slop that should be downward as it is shifted from left to right. Now if it is along on the horizontal axis that goes towards right so here MRTS falls and the labor rises. Due to increased in labor, the capital should falls because of the negative slope

Therefore the option a is correct

The point on the isoquant with a small MRTS​ (in absolute​ value) is associated with high labor use and low capital use.

In a production function theory, we will presume that the isoquants should be convex shaped and the MRTS should be isoquant slop hence, should be downward as it is shifted from left to right.

if the MRTS is along on the horizontal axis that goes towards right, hence, the MRTS falls and the labor rises.

Hence, due to the increase in labor, the capital should falls because of the negative slope.

Therefore, the Option A is correct since the point on the isoquant with a small MRTS​ (in absolute​ value) is associated with high labor use and low capital use.

Read more about production function theory

brainly.com/question/17247385

Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product Z1 Product Z8 Total
Labor-related DLHs $112,190 600 2,000 2,600
Machine setups setups 40,440 500 700 1,200
Order size MHs 609,770 3,000 3,200 6,200
$762,400
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
$203.26 per setup
$190.55 per setup
$122.97 per setup
$33.70 per setup

Answers

Answer:

Machine setups= $33.7 per setup

Explanation:

Giving the following information:

Activity Cost Pools Activity Measures Overhead Cost Product Z1 Product Z8 Total

Machine setups setups 40,440 500 700 1,200

To calculate the activity rate for Machine setup, we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine setups= 40,440 / 1,200

Machine setups= $33.7 per setup

The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts had been adjusted on January 31, 20Y7, the end of the fiscal year:

Depreciation Expense $16,400 Insurance Expense 8,040
Miscellaneous Expense 6,400 Rent Expense 66,300
Service Revenue 314,900 Supplies Expense 3,940
Utilities Expense 25,260 Wages Expense 247,600

Required:
Prepare an income statement.

Answers

Answer and Explanation:

The preparation of an income statement is presented below:

Service Revenue $314,900

Less: expenses

Depreciation Expense $16,400

Insurance Expense 8,040

Miscellaneous Expense 6,400

Rent Expense 66,300

Supplies Expense 3,940

Utilities Expense 25,260

Wages Expense 247,600

Net loss -$59,040

Hence, the income statement has the net loss of $59,040

g, Using your textbook and considering your discussion of the corporate culture of your subject company, describe 3-4 types of cultures or companies that currently exist which have the potential to have a major ethical problems in the future.

Answers

Answer:

Nestle - Irresponsible marketing of baby milk

Amazon - Avoiding tax

Coca Cola - Workers right violation at plant

Shell - Causing high environmental pollution

Explanation:

There are various ethical issues which businesses face today. There are problems of nepotism, harassment, discrimination, abuse of power and misrepresentation of financials. The company bad corporate culture also contributes towards unethical issues. There are various companies which maintains a brand image around the globe but are involved in unethical practices in someway. These companies are only concerned towards their uncountable profits and does not care about any ethical issue.

What is a question that should be asked about accounts payable when forecasting?
What is the cash conversion cycle?
How will our cash inflows be affected?
How much product on hand is too much?
How quickly can we replenish goods?

Answers

Answer:

In forecasting accounts payable, one of the relevant questions is:

What is the cash conversion cycle?

Explanation:

The variables used in computing the cash conversion cycle include accounts receivable days, inventory turnover days, and accounts payable days.  Specifically, cash conversion cycle (CCC) is the period in days that it takes the firm to convert cash into inventory, then into sales, and finally back into cash.  To gain a good understanding of accounts payable, one should always consider the major inclusive metric.

Medical profession is a very sensitive profession.Do U agree?Give 5 reason​

Answers

Answer:

Medical profession is very sensitive and intellectual where human life is at risk. A successful effort of a doctor can save a life. Due to that, a doctor is known as 2nd God. When he attempts a major and long surgery, his endurance, hard work and mental ability spotlight his character.

Purchasing office supplies on account for $100 is recorded as: a. Supplies 100 Accounts Payable 100 b. Cash 100 Supplies 100 c. Supplies 100 Cash 100 d. Accounts Payable 100 Supplies 100 Multiple Choice Option b Option a Option d Option c

Answers

Answer: A. Supplies 100 Accounts Payable 100

Explanation:

It should bw noted that the purchase of supplies on account has to be recorded with a debit to supplies and a credit to the account payable.

Therefore, with regards to the question, the journal entry will be:

Debit Supplies $100

Credit Account payable $100

In this case, there'll be an increase in the supplies balance and an increase in the accounts payable as well.

Hence the correct option is A

Calculate the Accounts Payable balance. ​(Enter the​ balance, along with a​ "Bal." reference on the correct side of the​ T-account.) Accounts Payable May 2 7,500 13,000 May 1 May 22 12,000 400 May 5 7,500 May 15 200 May 23

Answers

Answer and Explanation:

The computation of the account payable balance is given below:

Account Payable balance on month end is

= 13,000 + 400 + 7500 + 200 - 7500 - 12000

= $1,600

Hence, the account payable balance is $1,600

The same is to be reflected on the debit side of account payable T account

The same is to be considered

Your lobster fishing business is straightforward, and you run your accounting in Excel. You maintain separate workbooks for each year, and each workbook has a spreadsheet for every month. The monthly spreadsheets are identical except for their names, which are January, February, etc. You have found that you need to sum your diesel fuel expenditures, which are always recorded in cell D18, for the months of August through December. What three-dimensional formula would give you that result

Answers

Answer:

The three-dimensional formula that would give you the required result, that is suming the diesel fuel expenditures, which are always recorded in cell D18 for the months of August through December is:

=SUM(August:December!D18).

Explanation:

First, enter the excel starting formula "=SUM(". Type "August" or  left-click on the August sheet with the mouse. Type in colon and December or hold the Shift key and left-click on the December sheet. Then, select the cell C3 in the December sheet.  Before pressing "Enter," add a closing bracket.  The sum formula looks exactly like this: "=SUM(August:December!D18)." This formula can completely be typed manually. The formula sums up cell D18 across each of the sheets from August to December, returning a value.

On October 1, 2020 Vaughn Manufacturing issued 4%, 10-year bonds with a face value of $8130000 at 103. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. The entry to record the issuance of the bonds would include a credit of $243900 to Premium on Bonds Payable. credit of $162600 to Interest Payable. credit of $7886100 to Bonds Payable. debit of $243900 to Discount on Bonds Payable.

Answers

Answer:  a credit of $243,900 to Premium on Bonds Payable.

Explanation:

The bonds were issued at a premium of 103 so the bond issue price is:

= 8,130,000 * 103/100

= $8,373,900

The premium is therefore:

= Issue price - Face value

= 8,373,900 - 8,130,000

= $243,900

This premium will be credited to the Premium on Bonds Payable account to show that the Bonds were issued for higher than their face value.

Concord Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 18900 and ending work in process equaled 1000 units. Concord had no beginning work in process inventory. Conversion costs are applied uniformly throughout production, and all materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 30% complete and total materials costs equaled $86940

Answers

Answer:

the material cost per unit is $4.60 per unit

Explanation:

The computation of the material cost per unit is shown below:

= Total material cost ÷ equivalent units of material

= $86,940 ÷ (18,900 - 1,000) × 100% + 1,000 × 100%

= $86,940 ÷ (17,900 + 1,000)

= $86,940 ÷ 18,900

= $4.60 per unit

Hence, the material cost per unit is $4.60 per unit

The same should be considered and relevant

A company paid $0.85 in cash dividends per share. Its earnings per share is $3.50, and its market price per share is $35.50. Its dividend yield equals:

Answers

Answer: 2.4%

Explanation:

Cash dividend = $0.85

Earnings per share = $3.50

Market price per share = $35.50

The dividend yield will be calculated as:

= Cash dividends / Market price per share

= $0.85 / $35.50

= 0.024

= 2.4%

The dividend yield is 2.4%.

Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of . The company uses straight - line depreciation . Project A is expected to yield annual net income of $ 23,100 per year for the next five years.

Required:
Compute Project A's payback period.

Answers

Answer:

4.2 years

Explanation:

Here is the complete question

Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of $44,000. The company uses straight - line depreciation . Project A is expected to yield annual net income of $ 23,100 per year for the next five years.

Required:

Compute Project A's payback period.

Payback = amount invested / cash flow

cash flow = net income + depreciation

depreciation = (cost of asset - salvage value) / useful life

(385,000 - 44,000) / 5 = 68,200

Cash flow = 68,200 + $ 23,100 = 91300

$ 385,000 / 91300 =4.2

Question 12
0.5 pts
The goal of any monopolist is to maximize:
economic profits.
normal profits.
price.
consumer welfare.
output.

Answers

Answer:

economic profits.

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.

Also, a monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.

Generally, the goal of any monopolist is to maximize economic profits.

Basically, a monopolist earns an economic profit when the average total cost (AVC) of his goods and services is less than price.

Unlike a business firm operating in a perfectly competitive market, a monopolist can continue to earn economic profits in the long-run because there exist an extremely high level of barriers to entry for new business firms.

ABC LLC reported the following items on the LLC's Schedule K: ordinary income of $100,000; interest income of $3,000; long-term capital loss of ($4,000), charitable contributions of $1,000; AMT depreciation adjustment of $10,000, and cash distributions to partners of $50,000. How much will ABC show as net income (loss) on its Analysis of Income (Loss)

Answers

Answer:

$98,000

Explanation:

Use the following formula to calculate the net income

Net income = Ordinary income  + Interest income - long term capital loss  - Charitable contribution

Ordinary income  = $100,000

Interest income $3,000

Long term capital loss = $4,000

Charitable contribution = $1,000

Placing values in the formula

Net Income = 100,000 + 3,000 - 4,000 - 1,000

Net Income = $98,000

Sammy Co. uses process costing to account for the production of popcorn. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 20,000 units for materials and 18,200 units for conversion costs. Beginning inventory consisted of $6,200 in materials and $4,400 in conversion costs. May costs were $47,000 for materials and $32,000 for conversion costs. Ending inventory still in process was 4,000 units (100% complete for materials, 55% for conversion). The cost per equivalent unit for conversion costs using the weighted average method would be:

Answers

Answer:

$2.00

Explanation:

Calculation to determine what The cost per equivalent unit for conversion costs using the weighted average method would be:

Using this formula

Cost per equivalent unit for conversion costs=Beginning inventory for conversion costs +May costs for conversion)/Equivalent units for conversion costs

Let plug in the formula

Cost per equivalent unit for conversion = ($4,400 + $32,000)/18,200

Cost per equivalent unit for conversion =$36,400/18,200

Cost per equivalent unit for conversion = $2.00

Therefore The cost per equivalent unit for conversion costs using the weighted average method would be:$2.00

Wasilko Corporation produces and sells one product The budgeted selling price per unit is $114. Budgeted unit sales for February is 9,900 units. Each unit of finished goods requires 6 pounds of raw materials. The raw materials cost $4.00 per pound. The direct labor wage rate is $24.00 per hour. Each unit of finished goods requires 2.4 direct labor-hours. Manufacturing overhead is entirely variable and is $9.00 per direct labor-hour. The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $70,000. The estimated net operating income (loss) for February is closest to:

Answers

Answer: $21,080

Explanation:

First calculate the contribution margin per unit

= Sales - Variable costs

= Selling price - Raw materials - Direct labor cost - Manufacturing overhead - Variable selling and administrative expense

= 114 - (6 * 4) - (2.4 * 24) - (9 * 2.4) - 1.60

= $9.20

The Contribution margin is:

= 9.20 * 9,900 units

= $91,080

Net operating income = Contribution margin - fixed cost

= 91,080 - 70,000

= $21,080

During July, the production department of a process operations system completed and transferred to finished goods 24,000 units that were in process at the beginning of July and 72,000 that were started and completed in July. July's beginning inventory units were 100% complete with respect to materials and 30% complete with respect to labor. At the end of July, 29,000 additional units were in process in the production department and were 100% complete with respect to materials and 35% complete with respect to labor. The beginning inventory included labor cost of $52,400 and the production department incurred direct labor cost of $451,250 during July. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

Answers

Answer:

the direct labor cost per equivalent unit for the department is $4.74 per unit

Explanation:

The computation of the direct labor cost per equivalent unit for the department is given below:

Equivalent units for direct labor cost is

= 24,000 unit + 72,000 units + 35% of 29,000

= 24,000 units + 72,000 units + 10,150 units

= 106,150 units

Now the direct cost per equivalent unit is

= ($52,400 + $451,250) ÷ 106,150 units

= $4.74 per unit

Hence, the direct labor cost per equivalent unit for the department is $4.74 per unit

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