Answer:
Value of the Marginal product of labour
Market Labor Supply Curve
Market Labor Demand Curve
Marginal Product of Labor
a
Explanation:
Value of the Marginal product of labour is the increase in revenue received from selling a product as a result of increasing the labour demanded for by 1 unit
for example, revenue is $100 when there are 50 workers and$300 when there are 60 workers. Value of the marginal product of labour is
($300 - $100) / (60 - 50) = $20
If price of the output reduces, marginal product of labour decreases
The market labour supply curve is a graph that shows the relationship between wages and the supply of labour. there is a positive relationship between wages and the supply of labour. the curve is positively sloped
The market labour demand curve is a graph that shows the relationship between wages and the demand of labour. there is a negative relationship between wages and the demand of labour. the curve is negatively sloped
the marginal product of labour is the increase in output as a result of increasing labour by 1 unit
Does anyone know if can I take Spanish class in college if I speak Spanish perfectly? Would there be a problem or not?
Which of the following tasks is the project manager least likely to be involved
in?
O A. Monitoring the budget
B. Defining the project scope
C. Documenting important project changes
D. Running project meetings
hnberg Corporation had 540,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Ahnberg issued 160,000 shares of convertible preferred stock. The preferred shares are convertible into 320,000 shares of common stock. During the year Ahnberg paid $96,000 cash dividends on the preferred stock. Net income was $906,000. What were Ahnberg's basic and diluted earnings per share for the year
Answer: See explanation
Explanation:
Ahnbergs basic earnings per share will be calculated as:
= (Net Income - preferred dividends)/Weighted average shares outstanding
= ($906,000 - $96,000) / 540,000
= $810000 / 540000
= 1.50
The diluted earnings per share will be:
= Total Income - preferred dividends/(outstanding shares + Diluted Shares)
= 906000 / (96000 + 320000)
= 906000 / 416000
= 2.18
the following information pertains to Lightning Inc., at the end of December: Credit Sales $ 60,000 Accounts Payable 10,000 Accounts Receivable 7,000 Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 2% of accounts receivable not yet due, 10% of receivables up to 30 days past due, and 40% of receivables greater than 30 days past due. The accounts receivable balance of $7,000 consists of $3,500 not yet due, $2,000 up to 30 days past due, and $1,500 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense
Answer:the appropriate amount of Bad Debt Expense=$870
Explanation:
Given that for Lightning Inc., at the end of December:
Credit Sales $60,000
Accounts Payable 10.000
Accounts Receivable 7.000
Allowance for Uncollectible Accounts 400
creditCash Sales 20,000
Using the aging method and estimates it states that the following would be uncollectible
1. 2% of accounts receivable not yet due, $3500 which is
2 % x 3500= $70
2. 10% of receivables less than 30 days past due, $2000 which is
10% x 2000=$200
3. 40% of receivables greater than 30 days past due,$1500 which is
40% x$1500=$600
Appropriate amount of Bad Debt Expense= Allowance for Uncollectible Accounts =$70+$200+$600==$870
Therefore, Bad debt expense =$870
Allowance for Uncollectible Accounts=$870
s
Wizard Corp. needs to take out a one-year bank loan of $600,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of 10% that requires monthly payments. The loan principal will be paid back at the end of the year. Another bank has offered 7% add-on interest to be repaid in 12 equal monthly installments.
Based on a 360-day year, what will be the monthly payment for each loan for November?
Value
Simple interest monthly payment 58,850.00
Add-on interest monthly payment 48,150.00
42,800.00
53,500.00
Choose the answer that best evaluates the following statement:
A bank loan officer has been approached by a start-up company that needs a five-year loan to purchase the equipment for its first project. The project will have a life of five years. At the end of five years, the equipment will be worthless. The founders of the company told the loan officer that they would be willing to pay a much higher interest rate on a simple interest loan rather than contracting to an add-on interest loan.
A. The loan officer should offer the company an add-on interest loan because there is a high risk that the company will not be able to repay the principal on the loan at the end of the project's life.
B. The loan officer should offer the company a simple interest loan. The bank will make more money in the long run, because it can charge a much higher interest rate.
Answer: a. $53500
b. A. The loan officer should offer the company an add-on interest loan because there is a high risk that the company will not be able to repay the principal on the loan at the end of the project's life.
Explanation:
a. Based on a 360-day year, the monthly payment for each loan for November will be:
Principal = $600,000
Interest rate = 10%
Simple interest = (P×R×T)/100
= (600000 × 10× 1) /100
= $60000
The simple interest per month which will also be thesame for Novemeber will be:
= 60000/12
= $5000
Since add on interest is 7%, then the interest will be:
= 7% × $600,000
= 0.07 × $600,000
= $42000
Therefore, the interest for month of November will be:
=(600000 +42000)/12
= $642000 / 12
= $53500
b. The answer that best evaluates the statement given is option B. It should be noted that since it's a startup company, there may be challenges in repaying the loan. Therefore, the best scenario will be that the loan should be given on add on interest basis.
Burns Industries currently manufactures and sells 18,000 power saws per month, although it has the capacity to produce 33,000 units per month. At the 18,000-unit-per-month level of production, the per-unit cost is $61, consisting of $38 in variable costs and $23 in fixed costs. Burns sells its saws to retail stores for $78 each. Allen Distributors has offered to purchase 4,800 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs. Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least:
Answer:
Burns Industries
Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least:
above $38 (the variable cost per unit).
Explanation:
a) Data and Calculations:
Monthly production and sales units = 18,000
Production capacity per month = 33,000 units
Costs at the 18,000-unit-per-month level of production:
Variable costs = $38
Fixed costs = 23
Total per unit = $61
Selling price per unit = $78
Special offer for 4,800 saws per month, without changing the fixed manufacturing costs.
b) Incremental analysis approach is a management decision technique that specifies that only relevant, marginal, or differential costs should be taken into account. It rules out the inclusion of sunk or fixed costs, which do not change between alternatives.
Graham Corp. has 1,000 cartons of oranges that were harvested at a cost of $26,500. The oranges can be sold as is for $30,000. The oranges can be processed further into orange juice at an additional cost of $12,500 and be sold at a price of $46,000. The net benefit (additional income) from processing the oranges into orange juice instead of selling as is would be: rev: 12_08_2020_QC_CS-243270 Multiple Choice $16,000. $(16,000). $(3,500). $3,500. $33,500.
Answer:
C. $3,500
Explanation:
The total cost of orange juice = $26,500 + $12,500
The total cost of orange juice = $39,000
So, the profit on the orange juice = $46,000 - $39,000 = $7,000
Profit when oranges are sold without juice = $30,000 - $26,500
Profit when oranges are sold without juice = $3,500
So, extra income = $7,000 - $3,500 = $3,500
Thus, the net benefit (additional income) from processing the oranges into orange juice instead of selling as is would be is $3,500
How do deductions affect the amount of a paycheck?
Deductions are amounts that are subtracted from an employee's gross pay (their total earnings before any deductions or taxes are taken out) to determine their net pay.
Several types of deductions may be taken out of a paycheck, including taxes, insurance premiums, and retirement plan contributions.
Additionally, some deductions, such as those for 401(k) contributions, are made on a pre-tax basis, which means that they are taken out of an employee's gross pay before taxes are calculated. Other deductions, such as taxes and insurance premiums, are taken out of an employee's gross pay after taxes have been calculated.
Employers must abide by the laws and regulations of the state and federal governments when it comes to deductions, and provide their employees with detailed information about the deductions taken out of their paychecks.
In summary, deductions are amounts that are subtracted from an employee's gross pay to determine their net pay and can include taxes, insurance premiums, and retirement plan contributions. Employers must take these deductions legally and should provide employees with detailed information about what deductions are being taken out of their paychecks.
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Dwight Donovan, the president of Fanning Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of four years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $108,000 and for Project B are $48,000. The annual expected cash inflows are $51,270 for Project A and $20,675 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Fanning Enterprises’ desired rate of return is 6 percent. (PV of $1 and PVA of $1) Use appropriate factor(s) from the tables provided.)
A. Compute the net present value of each project. Which project should be adopted based on the net present value approach?
B. Compute the approx. internal rate of return of each project. Which one should be adopted based on the internal rate of return approach?
The net present value of Project A is $29,045.32, and net present value of project B is $22,264.52. The project that should be adopted based on the net present value is project A.
What is net present value?Net present value is the present value of after-tax cash flows from an investment less the amount invested.
a. The net present value of Project A:
= Present value of cash inflows - Initial expenditure
= (51,270 x present value interest factor, 6%, 3 years) - 108,000
= 51,270 x 2.673012 - 108,000
= $29,045.32
The net present value of Project B:
= 20,675 × 2.673012 - 33,000
= $22,264.52
b. Calculation of Internal Rate of Return:-
The IRR has been calculated using the financial calculator.
The IRR of Project A is 16% and that of Project B is 14%.
IRR of project A is more than Project B, which means Project A's return is more than project B. As per IRR Approach Project A is better than Project B.
Therefore, as per IRR and net present value approach Project A should be selected.
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Suppose a major hurricane hits the eastern coast of Florida and only destroys significant amounts of physical capital. All else the same, real gross domestic product (GDP) will ________ in the short run, and real GDP will ________ in the long run. Group of answer choices decline; be permanently lower decline; end up higher than the original level decline; return to the steady state level increase; decrease be unchanged; decline
Answer: decline; return to the steady state level
Explanation:
Physical capital can help in the production of goods and services. If a significant amount was to be destroyed, this would mean less production of goods. This will therefore lead to a decline in the GDP in the Short run.
In the long run however, the real GDP will return to a steady state where the GDP will become the potential GDP as a result of the physical capital has either been replaced or rebuilt in the future thereby leading to the production level which will increase.
Explain right to be heard with examples
The right to be heard means that, depending on their age and maturity, children can be involved in decisions and issues that affect them.
What is the right to be heard?The right to be heard (including the participation of children) is a principle of child rights as defined in the United Nations Convention on the Rights of the Child. According to article 12 of the Convention, children have the right to express their views on all matters that affect them, and their views must be given due weight according to their age and maturity. This right applies equally to children's participation in social and political affairs, and to judicial and administrative proceedings. As a general principle, children's right to be heard should be addressed not only as vulnerable individuals with special protection needs, but also as informed decision makers, rights holders and active members of society. It reflects the child's notion of 'agency', The right to a hearing in article 12 is closely related to other articles of the Convention, which together form the so-called 'participation rights' of children and the recognition of children as citizens with rights holders. Emphasis on understanding.learn more about the right to be heard
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Select each of the phases in the project-management lifecycle.
project definition
project initiation
project closure
project monitoring
project execution
project planning
Answer:
PROJECT PLANNING IS YOUR ANSWER
HOPE IT HELPS
MARK AS BRAINLIEST
Weidner Company sells 22,000 units at $30 per unit. Variable costs are $24 per unit, and fixed costs are $40,000.
Determine:
(a) the contribution margin ratio,
(b) the unit contribution margin, and
(c) income from operations.
Answer:
See below
Explanation:
a. Contribution margin ratio
= (Unit price - Variable cost per unit) / Unit price
Unit price = $30 per unit
Variable cost per unit = $24 per unit
Therefore,
Contribution margin ratio = ($30 - $24) / $30
Contribution margin = $0.2
b. Unit contribution margin
= Selling price unit - Variable cost per unit
Selling price per unit = $30 per unit
Variable cost per unit = $24
Therefore,
Unit contribution margin = $30 - $24
Unit contribution margin = $6
c. Income from operations
Sales (22,000 units at $30)
$660,000
Less:
Variable cost (22,000 units at $24)
$528,000
Contribution margin
$132,000
Less:
Fixed costs
($40,000)
Net income
$92,000
You are considering a project that requires an initial investment of $98,000 with a cost of capital of 14%. You expect the project to have a five-year life, and produce cash flows of $19,000 in year 1, $32,000 in year 2, $64,000 in year 3, $26,000 in year 4 and $10,000 in year 5. What is this project’s net present value? Group of answer choices
Answer:
NPV= 7,076.59
Explanation:
Giving the following information:
Initial investment= $98,000
Cash flows:
Cf1= 19,000
Cf2= 32,000
Cf3= 64,000
Cf4= 26,000
Cf5= 10,000
To calculate the NPV, we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
∑[Cf/(1+i)^n]:
Cf1= 19,000/1.14= 16,666.67
Cf2= 32,000/1.14^2= 24,622.96
Cf3= 64,000/1.14^3= 43,198.18
Cf4= 26,000/1.14^4= 15,394.09
Cf5= 10,000/1.14^5= 5,193.69
∑[Cf/(1+i)^n]= 105,076.59
Now, the NPV:
NPV= -98,000 + 105,076.59
NPV= 7,076.59
Marathon Company has 10,000 units of its product that were produced last year at a total cost of $150,000. The units were damaged in a rain storm because the warehouse where they were stored developed a leak in the roof. Marathon can sell the units as is for $2 each or it can repair the units at a total cost of $18,000 and then sell them for $5 each. Should Marathon sell the units as is or repair them and then sell them
Answer: Marathon should repair the units since an income of $12000 will be gotten.
Explanation:
Based on the information given, the following can be deduced:
Revenue when repaired = 10000 × $5 = $50000
Revenue if sold without repair = 10000 × $2 = $20000
Incremental revenue = $50000 - $20000 = $30000
Cost to repair = $18000
Incremental be Income = $30000 - $18000 = $12000
Therefore, Marathon should repair the units since an income of $12000 will be gotten.
What was the opening price of Dow Jones Industrial Average on Aug 02, 2017 in the format of XXXXX.XX?
Lynn has an account that ears interest at annual rate of 5% percent. Interest is compounded quarterly. Lynn’s account is $4000. What is the balance in her account at the end of the year
Answer:
Ending balance in account = $4,203.8 (Approx.)
Explanation:
Given:
Starting balance in account = $4,000
Rate of interest annually = 5%
Number of year = 1
Find:
Ending balance in account
Computation:
Compounded quarterly
So,
Number of interest period = 1 x 4 = 4
Rate of interest quarterly = 5% / 4 = 1.25% = 0.0125
So,
A = P[1+r]ⁿ
Ending balance in account = 4,000[1+0.0125]⁴
Ending balance in account = 4,000[1.0125]⁴
Ending balance in account = 4,000[1.05094]
Ending balance in account = 4203.76
Ending balance in account = $4,203.8 (Approx.)
Dextra Computing sells merchandise for $5,000 cash on September 30 (cost of merchandise is $3,000). Dextra collects 8% sales tax. Record the entry for the $5,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.
Record the cash sales and 8 % sales tax
Answer:
Date General Journal Debit Credit
Sep 30 Cash $5,400
Sales $5,000
Sales taxes payable $400 ($5,000 * 8%)
Sep 30 Cost of goods sold $3,000
Merchandise inventory $3,000
Oct. 15 Sales taxes payable $400
Cash $400
Jane plans on making flyers for the church bake sale. But she's running low on printer paper, so she takes home some paper from work to print them out. It's for
a good cause, but is this ethical?
Yes
No
It is not ethical for Jane to take papers from work to print flyers for the church bake sale. While the bake sale may be for a good cause, it is not appropriate for Jane to use resources from her work for personal gain or for the benefit of a third party.
Using company resources for personal or external purposes is generally considered to be a violation of ethical standards and workplace policies. In most cases, employees are expected to use company resources only for business-related purposes, and any personal use is strictly prohibited. This includes using company resources such as office supplies, equipment, and facilities for personal projects or for the benefit of a third party.
In addition to the ethical concerns, there may also be practical considerations to consider. For example, if Jane takes a significant amount of paper from work, it could potentially impact the company's operations or disrupt the workflow of her coworkers.
Overall, it is important for Jane to act responsibly and ethically in her use of company resources. Instead of taking papers from work, it would be more appropriate for her to purchase her own paper or seek permission from her employer before using company resources for personal purposes.
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Different textbooks were grouped in various ways but in general the six main external environments are economy citing culture politics and law competition technology and natural environment yes or no
It is true that in general, the six main external environments are economy culture, politics and law, competition, technology and natural environment.
What are the factors in external environment?An external environment is made up of all the outside factors or influences that have an impact on how a business operates. To maintain the flow of operations, the company must act or react.
The external environment is divided into two types: microenvironment and macroenvironment in which the micro environment consists of the factors that directly impact the operation of a company while the macro environment consists of general factors that a business typically has no control over.
Businesses should consider the following external environment factors which are political, economic, social and cultural, legal, technological, and environmental/natural.
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Vijay Inc. purchased a three-acre tract of land for a building site for $310,000. On the land was a building with an appraised value of $125,000. The company demolished the old building at a cost of $12,600, but was able to sell scrap from the building for $1,610. The cost of title insurance was $880 and attorney fees for reviewing the contract were $410. Property taxes paid were $3,000, of which $170 covered the period subsequent to the purchase date. The capitalized cost of the land is:
Answer:
See below
Explanation:
Given the above information, the capitalised cost of the land is computed as seen below;
Outsourcing (Make-or-Buy) Decision
Assume a division of Hewlett-Packard currently makes 16,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $27 per board, consisting of variable costs per unit of $22 and fixed costs per unit of $5. Further assume Sanmina Corporation offers to sell Hewlett-Packard the 16,000 circuit boards for $27 each. If Hewlett-Packard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett-Packard's suppliers for $25,000 per year. In addition, $3 per unit of the fixed overhead applied to the circuit boards would be totally eliminated. Calculate the net benefit (cost) to HP of outsourcing the component from Samina-SCI.
Answer:
If the company makes the units, it will save $7,000 per period.
Explanation:
Giving the following information:
Make in-house:
Number of units= 16,000
Variable cost per unit= $22
Avoidable fixed cost per unit= $3
Buy:
Number of units= 16,000
Buying price= $27
Rent= $25,000
First, we will determine the total cost of each option:
Make:
Total cost= 16,000*(22 + 3)= $400,000
Buy:
Total cost= 16,000*27 - 25,000= $407,000
If the company makes the units, it will save $7,000 per period.
The eleven southern New Jersey stores of Elder Dry Goods have been hurt in recent months by a large increase in shoplifting losses. The company's risk manager concluded that while the frequency of shoplifting losses has been high, the severity remains relatively low.
Required:
Which risk management techniques would be most appropriate for this problem?
Answer: loss control and retention
Explanation:
The options to the question are:
A. retention
B) loss control and retention
C) transfer through insurance
D) avoidance
Based on the information given in the question, management techniques would be most appropriate for this problem is the loss control and retention.
Loss control also referred to as risk reduction can be done through the prevention of loss by reducing the probability of risk, thereby minimizing the loss. This will be vital in this scenario as the shoplifting will reduce.
standards for all managers ethical responsibillities are covered in a companys
Standards for all managers' ethical responsibilities are covered in a company's code of ethics.
After a few years of successful business, Thomas saw the need to diversify his business to take advantage of the growth potential of new markets. Doing so also reduces the business risk. He set up a new company that sells 3 models of tables: Russian style, Italian style, and Mexican style. His targeted market was in NYC where there is huge demand for those products. Operating results for June are below:
a. If Italian style is discontinued, management estimates that sales of Russian style will increase by 20%. In good form, prepare an incremental analysis to determine if Italian style should be discontinued.
b. What qualitative factors should Thomas consider relating question (a)?
c. Should Italian style be discontinued based solely on quantitative aspects? Briefly justify your response.
d. Without creating new income statements, and using your results from your analysis in part A, determine the amount of the company’s new net income if Italian style is discontinued. Show your calculations.
I have the work completed...I just need to check my work. I would appreciate any help as soon as possible.
Using the following information, compute the direct materials used.
Raw materials inventory, January 1 $15000
Raw materials inventory, December 31 35000
Work in process, January 1 18000
Work in process, December 31 12000
Finished goods, January 1 40000
Finished goods, December 31 32000
Raw materials purchases 1,600,000
Direct labor 760,000
Factory utilities 150,000
Indirect labor 50,000
Factory depreciation 400,000
Operating expenses 420,000
A. $1,100,000.
B. $1,115,000.
C. $1,135,000.
D. $1,085,000.
Answer:
$1,580,000
Explanation:
Computation for the direct materials used
Using this formula
Direct Material Used = Raw materials purchases + Opening Stock of Raw Material - Closing Stock of Raw Material
Let plug in the formula
Direct Material Used= $1,600,000 + $15,000 - $35,000
Direct Material Used= $1,580,000
Therefore The Direct Material Used is $1,580,000
George has the following capital gains and losses for 2019: $6,000 STCL, $5,000 28% gain, $2,000 25% gain, and $6,000 0%/15%/20% gain. Which of the following is correct: Question 28 options: A) The net capital gain is composed of $6,000 25% gain and $1,000 0%/15%/20% gain. B) The net capital gain is composed of $5,000 28% gain and $2,000 0%/15%/20% gain. C) The net capital gain is composed of $3,000 28% gain, $2,000 25% gain, and $2,000 0%/15%/20% gain. D) The net capital gain is composed of $1,000 28% gain and $6,000 0%/15%/20% gain. E) The net capital gain is composed of $1,000 25% gain and $6,000 0%/15%/20% gain.
Answer:
E) The net capital gain is composed of $1,000 25% gain and $6,000 0%/15%/20% gain.
Explanation:
Calculation to determine what the net capital gain is composed of
Based on the information information given the amount of $6,000 STCL will have to offsets the $5,000 28% gain which is represent the highest tax rate gain while -$1,000 of 25% gain which is the amount that remain as loss will as well offsets the next highest tax rate gain.
Hence
Net capital gain= $6,000 STCL - $5,000 28% gain
Net capital gain= - $1,000 of 25% gain
Therefore the net capital gain is composed of
$1,000 25% gain and $6,000 0%/15%/20% gain.
Communication which occurs via a mass
email would fall under which category?
A. a synchronous
C. horizontal
B. vertical
D. synchronous
Mass email communication is considered to be synchronous communication. The correct answer is option (d).
What is synchronous communication?Real-time communication among two or more parties is referred to as synchronous communication. A synchronous communication interaction is essentially a live, interactive conversation between two parties. A continuous and constant timed transmission of data blocks is referred to be synchronous. When a lot of data has to be transported fast from one place to another, these connections are employed.
Synchronous is a generic term used to describe events that take place simultaneously. Face-to-face conversation and video chatting are examples of synchronous communication since they entail real-time back and forth. Instant messaging, video conferencing, and phone calls are synchronous communication examples.
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Exxon has the following capital structure: the firm issued 6 million shares of common stock with the stock price in c), the firm also issued 1.5 million shares of preferred stock with $4.5 preferred dividend per share, currently, Exxon has $25 millions in debts with interest rate as 6.5%. Suppose the current preferred stock price is $6 per share and the current common stock price is as in question (c), and the corporate tax rate is 25%. What is the (after-tax) weighted average cost of capital for Exxon
Answer: some data is missing but I was able to find it online and that helped me resolve the problem .
answer : WACC = 15.76%
Explanation:
Given that the common stock price = $9 ( as seen in option C not attached above )
value of common stock = $9 * 6 * 10^6 = $54,000,000
cost of common equity = 10.93%
current preferred stock price = $6
value of preferred stock = $6 * 1,500,000 = $9,000,000
hence the cost of the preferred equity = $4.5 / $6 = 0.75 = 75%
interest rate of debts = 6.5%
value of debit = $25,000,000
Corporate tax rate = 25%
∴ The cost of the debit after tax = 6.5% * ( 1 - 25)% = 4.88%
The Total value = value of common stock + value of preferred stock + value of debit
= 54,000,000 + 9,000,000 + 25,000,00 = $88,000,000
Finally the weighted average cost of capital ( WACC )
[weight of debt * cost of debt after tax ] + [ weight of common equity * cost of common equity ] + [weight of preferred * cost of preferred ]
= [ (25/88) * 4.875 ] + [(54/88) * 10.933] + [ (9/88) * 75 ]
= 15.76%
Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 2,900 liters in beginning work in process inventory (30% complete). During the period, 59,110 liters were completed. The ending work in process was 5,180 liters (70% completed). All inventories are costed by the first-in, first-out method. What is the total equivalent units for direct materials (using the FIFO method) if materials were added at the beginning of the process?
Answer: 61,390 liters
Explanation:
If materials were added at the beginning, they will be 100% accounted for at the end of the process.
Equivalent Units = Units started and completed + Ending inventory
= Units completed - Beginning WIP + Ending inventory
= 59,110 - 2,900 + 5,180
= 61,390 liters