Answer:
I just need points im so sorry but good luck
Suppose your roommate. Clara is starting à room cleaning business on your campus. There are five potential workers. Each is willing to work for the following daily wage:
Person Daily wage requirement
Alex $110
Diane $130
Cedric $150
Peter $170
Suppose that each person could clean eight rooms in a day and that Clara charges $21 for each room that is cleaned. How marry workers should Clara hire?
Answer:
3 workers
Explanation:
It is given that Clara is opening a room cleaning business on the campus. For Clara, there are 5 potential workers.
The daily wage of for the worker are :
Alex --- [tex]\$ 110[/tex]
Diane -- [tex]\$ 130[/tex]
Cedric -- [tex]\$ 150[/tex]
Peter -- [tex]\$ 170[/tex]
Zekta -- [tex]\$ 190[/tex]
Each of the worker will clean 8 rooms and $ 21 will be charged for each room to be cleaned.
Therefore, the number of the workers required is :
The marginal revenue product for each worker = 21 x 8 = 168
So, Clara will hire only those workers who have daily wage less than $ 168.
Therefore, Clara will hire 3 workers, namely Alex, Diane and Cedric.
Giả sử có số liệu về nền kinh tế (Lãi suất tính bằng %, các chỉ tiêu khác tính bằng tỷ USD):
MD = 2700 – 250i; MSr = 1750. Thì mức lãi suất cân bằng là bao nhiêu?
giúp em với ạ môn kinh tế vĩ mô nha mn
Answer:
What language is this?
Explanation:
Jolene Kendrick borrowed $24,000 for new computers for her software production company. Her bank granted her a single-payment loan of $24,000 for 144 days. Determine the maturity value to the nearest cent of the loan if the rate is 9% exact interest. Do not use comma in your answer.
Answer:
248521.6
Explanation:
Given:
Amount borrowed, P = 240,000
Interest rate, R = 9% = 0.09
period, n = 144 days
The maturity value :
Since it is an exact interest, number of days, T in a years is 365
Using the formula :
A =
P(1 + RT)
A = 240000(1 + 0.09*(144/365))
A = 240000(1 + 0.0355068)
A = 240000(1.0355068)
A = 248521.64
A = 248521.6
Bayou Financial Corporation holds a security interest in property owned by Cajun Farms. Perfection of this security interest may not protect Bayou against the claim of:_______
a. a bank.
b. a buyer in the ordinary course of business.
c. a subsequent lien creditor.
d. a trustee in bankruptcy.
Answer:
a
Explanation:
On January 1, Year 1, a contractor began work on a $3.2 million construction contract that is expected to be completed in 3 years. The contractor concludes that it is appropriate to recognize revenue over time using the input method based on costs incurred (cost-to-cost method). At the inception date, the estimated cost of construction was $2.4 million. The following data relate to the actual and expected construction costs:
Year 1 Year 2 Year 3
Cost incurred $720,000 $1,170,000 $1,110,000
Expected future costs $1,680,000 $810,000 $0
For this long-term construction contract, the contractor needs to calculate the estimated dollar values of the revenue and gross profit (loss) to be recognized each year.
Complete the contractor's long-term construction contract using the information above.
Revenue Gross Profit (loss)
Year 1
Year 2
Year 3
Answer:
Contractor's Long-term Construction Contract Table:
Revenue Gross Profit (loss)
Year 1 $960,000 $240,000
Year 2 $1,386,667 $216,667
Year 3 $853,333 ($256,667)
Total $3,200,000 $200,000
Explanation:
a) Data and Calculations:
Contract price = $3.2 million
Estimated cost of construction = $2.4 million
Actual and expected construction costs:
Year 1 Year 2 Year 3
Cost incurred $720,000 $1,170,000 $1,110,000
Expected future costs $1,680,000 $810,000 $0
Revenue $
Year 1 = $720,000/$2,400,000 * $3.2 million = $960,000
Year 2 = $1,170,000/$2,700,000 * $3.2 million = $1,386,667
Year 3 = $853,333
Revenue Gross Profit (loss)
Year 1 $960,000 $240,000 ($960,000 - $720,000)
Year 2 $1,386,667 $216,667 ($1,386,667 - $1,170,000)
Year 3 $853,333 ($256,667) ($853,333 - $1,110,000)
Total $3,200,000 $200,000 ($3,200,000 - $3,000,000)
Peterkin Inc needs to arrange financing for its expansion program. Sandy Bank offers to lend Peterkin the required funds on a loan in which interest must be paid monthly, and the quoted rate is 6 percent. Money Plus Bank will charge 6.8 percent, with interest due at the end of the year. Which bank should Peterkin take the loan from
Answer:
Sandy Bank
Explanation:
to determine which bank Peterkin would prefer a loan from, calculate the effective annual interest rate
the bank with the lower effective annual interest rate would be preferred
Effective annual rate = (1 + APR / m ) ^m - 1
M = number of compounding
Sandy Bank : (1 + 0.06/12)^12 - 1 = 0.062 = 6.2%
Money Plus Bank = 6.8
Sandy bank has a lower effective annual interest rate and would be preferred for the loan
TD Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually.
Assets Amount($millions) Annual Rate Liabilities Amount ($ millions) Annual Rate
2-years loans $40 8% 3-years GIC $60 7%
3-years loans $60 8% 5-years term deposit $30 6%
Equity $10
Total $100 Total $100
Required:
a. What is the change in the value of its assets if all interest rates decrease by 1 percent?
b. What is the change in the value of its liabilities if all interest rates decrease by 1 percent?
c. What is the effect on the value of the Fi's equity if interest rates decrease by 1 percent?
Answer:
a) Change of $2.6 million
b) Change of $3.3 million.
c) Decrease in equity by $0.7 million
Explanation:
a) Determine change in value of assets when interest rates decrease by 1%
i) 2-year loans
Principal Amount = $40 , Annual rate = 8%
Value of asset = P + interest = $40 + 6.4 = $46.4
Interest earned = PRT = (40 * 8 * 2) / 100 = $6.4
Given that Annual rate = 8 - 1 = 7%
value of asset = P + interest = $45.6
interest = ( 40 * 7 * 2 ) / 100 = $5.6
change in 2-year loan assets = 46.4 - 45.6 = $0.8 million
ii) 3-year loan assets
Principal amount = $60 , annual rate = 8%
Value of asset = P + interest = 60 + 14.4 = $74.4
interest earned = PRT = ( 60 * 8 * 3 ) / 100 = $14.4
When Annual rate = 8 - 1 = 7%
value of asset = P + interest = 60 + 12.6 = $72.6
interest = ( 60 * 7 * 3 ) / 100 = $12.6
Change in 3-years loan assets = 74.4 - 72.6 = $1.8
∴Total change in value of assets = 1.8 + 0.8 = $2.6 million
B) Change in value of liabilities when interest rates fall by 1%
i) 3-years GIC liability
Principal amount = $60 , interest rate = 7%
Value of liability = P + interest = $72.6
interest = ( 60 * 7 * 3 ) / 100 = $12.6
When interest rate = 7 - 1 = 6%
Interest = ( 60 * 6 *3 ) / 100 = $10.8
value = 60 + 10.8 = $70.8
change in 3 years GIC liability = 72.6 - 70.8 = $1.8
ii) 5 - years term deposit liability
principal amount = $30 , interest rate = 6%
value of liability = P + interest accrued = 30 + 9 = $39
Interest accrued = ( 30 * 6 * 5 ) / 100 = $9
when Interest rate = 6 - 1 = 5%
value of liability = P + interest accrued = 30 + 7.5 = $37.5
interest accrued = ( 30 * 5 * 5 ) / 100 = $7.5
change in 5-years term deposit liability = 39 - 37.5 = $1.5
∴ Total change in value of liabilities = 1.8 + 1.5 = $3.3 million
c) Effect on the value of FI's equity is that there will be an DECRESE in equity because of the Increase in Liability value more than increase in asset value
Equity = asset - liability
= 2.6 - 3.3 = -$0.7 million
Danielle has loaned $500 to Richard at a 4% annual rate of interest for one year. If the inflation rate is constant at 7% for the entire term of the loan, how much purchasing power is lost after Richard repays the loan in full
Answer:
$15
Explanation:
In order to calculate the purchasing power lost the following formulae will be used:
Purchasing power lost = Loaned amount * (inflation rate - nominal rate)
Purchasing power lost = $500 * (0.07 - 0.04)
Purchasing power lost = $500 * 0.03
Purchasing power lost = $15
Hence, the purchasing power lost after Richard repays the loan in full is $15.
For 2019, Skresso Co. reported $1.82 of earnings per share of common stock. During 2020, the firm had a 4% common stock dividend. The 2019 earnings per share to be reported in the annual report for 2020 are:
Answer:
$1.75
Explanation:
Earnings per share to be reported = Earnings per share of commo stock * (1 - 4%)
Earnings per share to be reported = $1.82 * 96%
Earnings per share to be reported = $1.7472
Earnings per share to be reported = $1.75
So, the 2019 earnings per share to be reported in the annual report for 2020 are $1.75.
The Allowance for Bad Debts account had a balance of $10,600 at the beginning of the year and $12,200 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $18,800 was recognized.
Required:
Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year. (Hint: Make a T-account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the missing amount.)
Bad debt write-offs _________
Answer:
Written off = $17,200
Explanation:
Allowance for Bad Debt Account
Debtors (Write off) (Bal. fig) $17,200 Beginning Bal. $10,600
Bad debt expense $18,800
Ending Balance $12,200
Thus, the total amount of past-due accounts receivable that were written off as uncollectible during the year is $17,200.
Sunland Company reported a net profit of $8.15 per share and a dividend of $3.50 per share. If you buy shares of the stock at $94.85 per share, what is your dividend yield
Answer:
The answer is "[tex]3.69\%[/tex]"
Explanation:
Dividend Share [tex]= \$3.50[/tex]
stock purchasing Price[tex]= 94.85[/tex]
[tex]\text{Dividend yield} = \frac{Dividend}{Purchase price}\\\\[/tex]
[tex]=\frac{3.50}{94.85}\\\\=0.036900369 \approx 3.69\%[/tex]
Prepare a Master Schedule given the following information:
Forecast for each week for an eight-week schedule is 75 units.
The Master Production Schedule (MPS) rule is to schedule production if the projected on-hand inventory would be negative without it.
Committed customer orders are as follows:
WeeWeek CjusCustomer order
1 75
2 53
3 26
4 18
Use a production lot size of 100 units and no beginning inventory.
Week
1 2 3 4 5 6 7 8
Forecast 75 75 75 75 75 75 75 75
Customer Orders 75 53 26 18 0 0 0 0
Projected On-Hand Inventory
MPS
Formulas for Projected On-Hand Inventory
Week 1 = Beginning Inventory + MPS – MAX (Forecast:Customer Order)
Highest number
Weeks 2 – 8 = Previous Week Inventory + MPS – (Forecast: Customer Order)
Because the problem says we cannot have any negative inventory, then we require MPS shipments to come in. When a shipment comes in, it is in lots of 100. In this problem, MPS will be added for Weeks 1,2,3 and Weeks 5, 6, 7. No MPS shipments are expected in Week 4 or Week 8.
Answer:
Master Production Schedule (MPS)
Week 1 2 3 4 5 6 7 8
Forecast Customer Order 75 75 75 75 75 75 75 75
Customer Orders 75 53 26 18 0 0 0 0
Projected On-Hand Inventory 25 50 75 0 25 50 75 0
MPS 100 100 100 0 100 100 100 0
Explanation:
a) Data and Calculations:
Master Production Schedule (MPS)
Week 1 2 3 4 5 6 7 8
Forecast Customer Order 75 75 75 75 75 75 75 75
Customer Orders 75 53 26 18 0 0 0 0
Projected On-Hand Inventory
MPS
Formulas for Projected On-Hand Inventory
Week 1 = Beginning Inventory + MPS – MAX (Forecast:Customer Order)
Highest number
Weeks 2 – 8 = Previous Week Inventory + MPS – (Forecast: Customer Order)
Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years
and an estimated residual value of $25,000.
A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method
of depreciation?
B. What was the book value of the equipment on January 1 of Year 4?
C. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the
entry to record the sale.
D. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead
of $300,000, journalize the entry to record the sale.
Answer:
A. Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. $322,500
C. Dr Cash $300,000
Dr Accumulated Depreciation-Equipment $52,500
Dr Loss on disposal of Equipment $22,500
Cr Equipment $375,000
D. Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
Explanation:
A. Calculation to determine What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation
Year 1 Depreciation expense Year 1=($375,000-$25,000)/20 years
Year 1 Depreciation expense Year=$17,500
Year 2 Depreciation expense Year=($375,000-$25,000)/20 years
Year 2 Depreciation expense Year=$17,500
Year 3 Depreciation expense Year=($375,000-$25,000)/20 years
Year 3 Depreciation expense Year=$17,500
Therefore the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation is :
Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. Calculation to determine What was the book value of the equipment on January 1 of Year 4
Book value of Equipment=[$375,000-($17,500*3)]
Book value of Equipment=[$375,000-$52,500)
Book value of Equipment=$322,500
Therefore the book value of the equipment on January 1 of Year 4 is $322,500
C. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $300,000
Accumulated Depreciation-Equipment $52,500
($17,500*3)
Dr Loss on disposal of Equipment $22,500
($322,500-$300,000)
Cr Equipment $375,000
(To record sales)
D. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
($17,500*3)
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
($325,000+$52,500-$375,000)
(To record sales)
During its inception, Devon Company purchased land for $100,000 and a building for $180,000. After exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsidiary, Regan Company, in exchange for 15,000 shares of Regan's $10 par value stock. Devon uses straight-line depreciation. Useful life for the building is 30 years, with zero residual value. An appraisal revealed that the building has a fair value of $200,000. 5) Based on the information provided, at the time of the transfer, Regan Company should record: A) Building at $180,000 and no accumulated depreciation. B) Building at $162,000 and no accumulated depreciation. C) Building at $200,000 and accumulated depreciation of $24,000. D) Building at $180,000 and accumulated depreciation of $18,000.
Answer:
The answer is "Option D".
Explanation:
R Company must register a [tex]\$180,000[/tex] building, as well as, an accumulated [tex]\$18,000[/tex] depreciation.
It makes the design the right decision with [tex]\$180,000[/tex] as well as the accrued [tex]\$18,000[/tex] depreciation.
Operating Cash Flows (Direct Method)
Refer to the information in Exercise EB-31. Calculate the net cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense.
Answer:
The method to calculate Cash Flow from Direct Method is explained as follows:
Explanation:
The method to calculate Cash Flow from Direct Method is explained as follows:
Cash Flows
Direct Method
+ Cash received from Customer
- Cash paid to suppliers
- Cash payments for operating expenses
- Cash payments for interest
- Cash payments for taxes
= Net Cash flow from Operating Activities.
Signature Appliance Group decided to remove the grill unit from the ovens it sells in South America after customers complained they preferred to grill outside and would never use this feature. Which environmental force caused the company to change its product
Answer:
Signature Appliance Group
The environmental force that caused the company to change its product features is:
the Social and Cultural Environment.
Explanation:
The Social and Cultural Environment refers to the changing needs of customers in South America as a result of the values, attitudes, and preferred styles of consumers. These are always in a state of flux every year. Since customers preferred to grill outside rather than inside their kitchens, adding the grill unit in the ovens that the company sells in South America will not enable customers to choose its ovens over competitors'. To respond to the stated needs of its customers, the grill must be removed, thereby reducing the cost of the ovens.
The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 45,650 Current assets $ 19,020 Long-term debt $ 37,970 Costs 36,450 Fixed assets 69,250 Equity 50,300 Taxable income $ 9,200 Total $ 88,270 Total $ 88,270 Taxes (24%) 2,208 Net income $ 6,992 Assets and costs are proportional to sales. The company maintains a constant 35 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued
Answer:
$4,533.05
Explanation:
Return on equity (ROE) = Net income / Equity
Return on equity (ROE) = $6,992 / $50,300
Return on equity (ROE) = 13.9%
Retention ratio = 1 - Dividend payout ratio
Retention ratio = 1 - 35%
Retention ratio = 65%
Sustainable growth rate = [13.9%*65%] / [1 - 13.9%*65%]
Sustainable growth rate = 0.09035 / 0.90965
Sustainable growth rate =0.09932392
Sustainable growth rate = 9.93%
Maximum dollar increase = Sales * Sustainable growth rate
Maximum dollar increase = $45,650 * 9.93%
Maximum dollar increase = $4,533.05
Martha B's has total assets of $1,810. These assets are expected to increase in value to either $1,900 or $2,400 by next year. The company has a pure discount bond outstanding with a face value of $2,000. This bond matures in one year. Currently, U.S. Treasury bills are yielding 5.5 percent. What is the value of the equity in this firm
Answer:
$7.24
Explanation:
PV at the risk free rate = $1,900 / (1 + 0.055)
PV at the risk free rate = $1,900 / 1.055
PV at the risk free rate = $1,800.95
Number of options needed = (2,400 - 1,900) / (400 - 0)
Number of options needed = 500 / 400
Number of options needed = 1.25
Total assets = (No of options needed*Value of equity) + Present value at the risk free rate. Let Value of equity be C0
$1,810 = (1.25*C0) + $1,800.95
$1,810 - $1,800.95 = 1.25*C0
C0 = $9.05 / 1.25
C0 = $7.24
So, the Value of equity in this firm is $7.24.
Companies must disclose when they give products to online reviewers. rue or false
An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in:
Answer:
an increase in price and an indeterminate increase in equilibrium quantity
Explanation:
Increase in demand leads to an outward shift of the demand curve. As a result equilibrium price and quantity increases
A decrease in supply leads to an inward shift of the supply curve
United Airlines is considering purchase of two alternative planes. Plane A has an expected life of 5 years., will cost $100 million, and will result in net cash flow of $30 million every year. Plane B has a life span of 10 years, will cost $132 million, and will produce net cash flow of $25 million per year. United Airlines plan to serve the route only for 10 years. Inflation in operating costs, airline costs and fares are expected to be zero. The company's cost of capital is 12%. By how much would the value of the company increase if the company accepts the better project ( plane).
Answer:
United Airlines
The value of the company would increase by $9.25 million if it accepts the better project (Plane B).
Explanation:
a) Data and Calculations:
Alternative 1 Alternative 2
Plane A Plane B
Initial project cost $100 million $132 million
Annual net cash inflow $30 million $25 million
Expected lifespan 5 years 10 years
Cost of capital = 12%
Present value Annuity factor 3.605 5.650
Present value of cash inflows $108,150,000 $141,250,000
Net present value = $8,150,000 $9,250,000
The better project (plane) is Plane B.
A high Power Distance Index score implies that the people who hold power in a country are entitled to privileges.
a. True
b. False
Answer:
a. True
Explanation:
The Power-Distance Index refers to the relationship and interaction between a high ranking individual and a low ranking individual. The index depends on how a low ranking individual reacts to a high ranking individual.
It measures the degree where the members of a society or group accepts the hierarchy of the power and the authority.
Thus according to the high power distance index score, individuals with high power are entitled to number of privileges in a country or in society.
Hence the answer is TRUE.
A dispute between labor and management at an automobile production plant has effectively stopped production for 2 months and has cost the company a tremendous amount of money. Despite the use of third parties, neither side can agree on a solution, but they do agree that the dispute must be settled soon. How should this dispute at this stage be settled
Answer:
Arbitration
Explanation:
The arbitration process seems to be the best way to make the settlement process happen in this case. The arbitration process will be between labor and management as an impartial third party (arbitrator or arbitral tribunal) takes charge of the process. Once both parties have agreed to arbitraueb, the arbitrator then proffers powerful ways of ensuring dispute resolution in such a way that a mutual agreement is reached by both labor and management. Even though proferred solution shouldn't be compulsorily adopted by the conflicting parties.
Belle Company buys land for $50,000 on 12/31/20. As of 3/31/21, the land has appreciated in value to $50,700. On 12/31/21, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2021
Answer:
Belle Company
The amount that the Land account should be increased by is:
= $1,800.
Explanation:
a) Data and Calculations:
Cost of land bought on 12/31/20 = $50,000
Value of land on 3/31/21 = $50,700
Appraised value of land on 21/31/21 = $51,800
The amount that the Land account should be increased by is $1,800 ($51,800 - $50,000)
b) Land is always appraised by a professional appraiser who uses the value of similar property in the same location to determine the value. Appraisal helps to determine the value of the property, especially if it is being sold to another party or being used as collateral to obtain finance.
Heavy use of long-term debt can be of benefit to a firm to help expand, although it adds to the firm's overall level of risk.
A. True
B. False.
Answer:
A
Explanation:
Long term debt is debt that has a maturity that is longer than a year.
The higher the use of debt, the higher the risk a firm takes on. This is because the greater the use of debt, the higher the chances of the firm defaulting on debt.
firms that use a high amount of debt, have an higher beta. As a result of the higher beta, the required return is also higher.
use of long-term debt provides firms with the necessary cash flows that would be needed to carry out necessary projects. Thus, it benefits a firm by helping it expand
If the company's return on assets is 13% and the industry average is 10%, the company's return on assets ratio is _____ the industry average.
Answer: better than
Explanation:
Return on assets refers to a profitability ratio which shows the amount of profit that a company will make from its assets. The return on assets is calculated by dividing the net income of the business by the total assets.
Since a company's return on assets is 13% and the industry average is 10%, then we can infer that the company's return on assets ratio is better than the industry average.
Last year Burch Corporation's cash account decreased by $29,000. Net cash provided by (used in) investing activities was $8,400. Net cash provided by (used in) financing activities was $(26,500). On the statement of cash flows, the net cash provided by (used in) operating activities was:
Answer:
The answer is "-10,900"
Explanation:[tex]\text{Cash from operating activities} + \text{cash from investing activities + cash from financing activities} = -29,000[/tex]
[tex]\text{cash from operating activities}[/tex] [tex]+ 8,400 - 26,500 = -29,000[/tex]
[tex]= -29,000 + 26,500 - 8,400\\\\= -10,900[/tex]
When using process costing, nonmanufacturing costs are ______.
a) included as part of the cost of the product
b) expensed during the period
c) incurred ignored treated as part of conversion costs
Answer:
b) expensed during the period
Explanation:
Process costing can be defined as a cost accounting method used for assigning manufacturing or production costs to the units of goods produced by a business firm over a specific period of time. It is mostly used by firms that produce a large quantity of homogeneous or similar products on a continuous basis.
Typically, process costing uses more than one Work in Process Inventory account because costing is done at each stage of the production or manufacturing process.
Generally Accepted Accounting Principles (GAAP) can be defined as the set of commonly used accounting standards in the U.S.
This ultimately implies that, the United States of America, Generally Accepted Accounting Principles (GAAP) is the accounting principles, procedures and standard issued by the Financial Accounting Standards Board (FASB) and adopted by the United States of America, Securities and Exchange Commission (SEC).
Under U.S Generally Accepted Accounting Principles (GAAP), when using process costing, non-manufacturing (administrative and selling) costs are expensed on the income statement of the company during the accounting period they were incurred.
Answer:
b) expensed during the period
Explanation:
When using process costing, nonmanufacturing costs are expensed during the period.
At the fourth and final resource, one operator handles the product. No quality problems exist at this step and the processing time is 12 minutes per unit. For every unit of demand, how many units have to flow through the second step in the process
Answer:
2.25 units.
Explanation:
Processing time is 5 minutes per unit for step 1. The total capacity is 60 minutes then no. of units produced can be;
60 / 5 = 12 units per hour.
For second step processing time is 4 minutes per unit. There is 0.85 unit of product is scrapped. Then no. of units produced per hour can be ;
60 / 4 = 15 units per hour.
After scrap the net product units per hour will be;
15 units * [1 - 0.85] = 2.25 units per hour.
mwakilembe Co.ltd is a micro business which buys and sell toys on 1 January 2020 the company predicted its annual sales to be 1000000 units. Each order would cost the company TZS 80 . The company pays TZS 160 per unit of a product. Estimated inventory carrying costs are 25 percent of inventory value. Establish the EOQ units.
Answer:
2000
Explanation:
Given:
Annual DEMAND, D = 1,000,000
Holding cost, H = (I * C)
Cost per order, S = 80
Unit cost, C = 160
Holding cost (%) = 25% = 0.25
The Economic order quantity :
EOQ = √[(2 * D * S) / (I * C)]
EOQ = √[(2 * 1000000 * 80) / (0.25 * 160)]
EOQ = √[(160000000) / 40]
EOQ = √4000000
EOQ = 2000
